Construction Kicks off on First Two Hotels at 'Red Sea' Project

Red Sea Development project - (SPA)
Red Sea Development project - (SPA)
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Construction Kicks off on First Two Hotels at 'Red Sea' Project

Red Sea Development project - (SPA)
Red Sea Development project - (SPA)

The Red Sea Development Co. (TRSDC), announced on Wednesday that it had started construction on two of its flagship hotel projects.

It said in statements that it has awarded contracts to Saudi company Al Bawani and Swiss firm Blumer Lehmann to support the development plans and structural work of its luxury hotels and resorts.

The two companies will play pivotal roles in the construction of hotels across The Red Sea Project, with Al Bawani responsible for civil and structural works across 40 hotel villas on the Southern Dunes site, and Blumer Lehmann responsible for timber construction planning and fabrication as well as supply works for a hotel situated on Ummahat Al Shaykh Island," the statements read.

John Pagano, the CEO of TRSDC, said: "The Red Sea Development Company has made significant progress in terms of the design and construction of key infrastructure to enable the development of hotel assets."

“It is exciting to award these contracts, which signify the start of a new phase for us as we move into the build of our stunning resorts both inland and on one of our key islands. We feel confident that Al Bawani and Blumer Lehmann will help turn our vision into a reality.”

The hotel project at the Southern Dunes site will also include the building of staff accommodation for around 700 employees, which will substantially reduce workers’ travel time and help improve productivity.

Fakher Alshawaf, CEO at Al Bawani, said: “This award represents a first for the Southern Dunes and is an essential part of the development plans for The Red Sea Project. We’re honored to be one of the first companies to work across this beautiful site and are pleased to play our role in helping to open up this destination and our country to the rest of the world.”

The Red Sea Project was announced by Crown Prince Mohammed bin Salman in July 2017. Elements of the first phase of the flagship scheme are due to open in 2022, with full completion in 2030.



Saudi Arabia, IFAD Partner to Fight Hunger

Maize planting and harvest season in one of Saudi Arabia’s provinces (File photo courtesy of SPA)
Maize planting and harvest season in one of Saudi Arabia’s provinces (File photo courtesy of SPA)
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Saudi Arabia, IFAD Partner to Fight Hunger

Maize planting and harvest season in one of Saudi Arabia’s provinces (File photo courtesy of SPA)
Maize planting and harvest season in one of Saudi Arabia’s provinces (File photo courtesy of SPA)

Amid a widening global food gap and the mounting impacts of climate change, the International Fund for Agricultural Development (IFAD) has underscored the vital importance of boosting support for agricultural and food-related activities to drive sustainable development in rural areas.

 

The UN agency praised its strong and multifaceted cooperation with Saudi Arabia, highlighting key areas of focus that include food security, rural development, and strengthening resilience to environmental changes.

 

IFAD is also ramping up efforts to promote the “blue economy” as part of its broader strategy to support sustainable development, particularly in rural and coastal communities, a senior official told Asharq Al-Awsat.

 

Naoufel Telahigue, IFAD’s Regional Director for the Near East, North Africa and Europe, said the Rome-based UN agency is working to scale up sustainable use of oceans, seas, and water resources to drive economic growth, improve livelihoods, and safeguard marine ecosystems.

 

“The blue economy is an emerging development approach that recognizes the economic potential of our marine and aquatic resources—when used sustainably,” he said.

 

According to Telahigue, IFAD has implemented more than 100 projects across 35 countries over the past four decades, with total investments exceeding $3.4 billion, of which the Fund contributed $1.5 billion.

 

These projects have reached over 80 million beneficiaries, including fishers, aquaculture farmers, seafood processors, traders, as well as women, youth, Indigenous peoples and persons with disabilities.

 

Currently, over 75 active IFAD-supported projects target fisheries, aquaculture, and livelihoods in coastal zones.

 

The blue economy spans a range of sectors, including sustainable fishing, aquaculture, coastal tourism, marine renewable energy, maritime transport, and waste management. Telahigue said IFAD is focused on helping rural populations reduce poverty, boost food security, improve nutrition, and build resilience to environmental shocks.

 

Since its establishment in 1978, IFAD has provided more than $25 billion in low-interest loans and grants to fund development projects in low- and middle-income countries.

 

Telahigue pointed to a set of challenges hampering IFAD’s mission, including limited funding amid rising global crises, the growing impact of climate change on livelihoods, and poor infrastructure in targeted regions. He also highlighted political instability and armed conflict as key obstacles to project implementation and sustainability.

 

“The lack of inclusivity and equal access to resources remains a major concern,” he added.

 

To address these issues, Telahigue called for strengthening partnerships, adopting innovative financing solutions, and developing flexible, community-based interventions. He stressed the importance of improving monitoring and evaluation systems to ensure long-term sustainability and maximize impact.

 

Saudi Arabia continues to provide robust and diversified support to the International Fund for Agricultural Development (IFAD), with a focus on rural development, food security and climate change adaptation, a senior official at the UN agency said.

 

As a founding member of IFAD, the Kingdom has contributed more than $485 million since 1977, reflecting its long-standing commitment to poverty reduction and strengthening food systems in developing countries, said Telahigue.

 

He described the opening of IFAD’s liaison office in Riyadh in 2019 as a pivotal step toward deepening partnerships with Gulf Cooperation Council (GCC) countries, facilitating knowledge exchange, and rolling out innovative initiatives.

 

Among them is the “reimbursable technical assistance” program, which supports smallholder farmers in Saudi Arabia’s Jazan region with climate-smart production models for crops such as coffee and mango.

 

In 2021, IFAD signed a cooperation agreement with the King Salman Humanitarian Aid and Relief Center to combat hunger and malnutrition in the world’s most vulnerable countries by improving sustainable access to food.

 

Telahigue said IFAD’s goals align closely with Saudi Arabia’s flagship environmental initiatives, including the Saudi Green Initiative and the Middle East Green Initiative, which aim to restore ecosystems and promote environmental sustainability—both on land and across marine and coastal zones.