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Saudi Red Sea Development Company Targets $4Bn in Contracts

The Red Sea Development Company announced targeting contracts worth about SAR15 billion riyals by the end of 2020. (SPA)
The Red Sea Development Company announced targeting contracts worth about SAR15 billion riyals by the end of 2020. (SPA)
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Saudi Red Sea Development Company Targets $4Bn in Contracts

The Red Sea Development Company announced targeting contracts worth about SAR15 billion riyals by the end of 2020. (SPA)
The Red Sea Development Company announced targeting contracts worth about SAR15 billion riyals by the end of 2020. (SPA)

The Red Sea Development Company (TRSDC), the developer behind Saudi Arabia’s flagship international regenerative tourism initiative “The Red Sea Project”, announced on Sunday targeting contracts worth about SAR15 billion riyals ($4 billion) by the end of 2020.

It also revealed awarding to date more than 500 contracts to international and local firms, collectively worth around SAR7.5 billion ($2 billion). These include awards for the design, construction and operation of state-of-the-art accommodation and facilities at the destination.

The announcements were made during a press interview by the company to review the most significant developments in the project.

The luxury tourism destination along the Red Sea coast outlines impressive and tangible progress made at the 28,000 km² site that includes a vast archipelago of more than 90 islands.

The Project has already passed significant milestones and work is on track to welcome the first guests by the end of 2022, when the international airport and the first four hotels will open. The remaining 12 hotels scheduled for completion in phase one will open in 2023, delivering a total of 3,000 rooms across five islands and two inland resorts.

“This significant landmark underscores the scale of our project and the remarkable progress made to create the destination of the future, said John Pagano, CEO of TRSDC.

“TRSDC is a contributing factor to the growth of the Saudi Arabian economy and is playing a pivotal role in its Vision 2030 plan,” he added.

Meanwhile, the company plans to close on a SAR14 billion ($3.7 billion) loan from five domestic banks by the end of the year as it steps up construction on a luxury tourism project.

So far the company has awarded SAR7 billion of contracts and plans to award a total of SAR15 billion by the end of the year, Bloomberg quoted Pagano as saying.

Since the company’s establishment in 2017, over 70 percent of the total value of contracts has been awarded to Saudi firms, highlighting TRSDC’s commitment to bolstering the local economy Overall, more than 500 contracts have been awarded to companies from 24 countries.

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Saudi EXIM Hosts Global Risk Experts Meeting in Riyadh

The event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions. - SPA
The event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions. - SPA
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Saudi EXIM Hosts Global Risk Experts Meeting in Riyadh

The event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions. - SPA
The event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions. - SPA

The Saudi Export-Import Bank (Saudi EXIM) hosted the Berne Union's Country Risk Specialist Meeting, providing a platform for experts and thought leaders in risk management from the export credit community.
At the meeting, which took place from November 19 to 21 in Riyadh, the attendees exchanged best practices to better protect the industry amid shifting global dynamics.
According to a statement issued by the Saudi EXIM on Saturday, the event gathered specialists from 47 organizations from 33 countries; it served as a platform for discussing strategies, partnerships, and innovative solutions.
By strengthening institutional resilience, the industry is ready to turn global economic challenges into opportunities for economic prosperity, said the statement, adding that it played a crucial role in advancing global trade, strengthening international cooperation, and developing credit solutions that empower export activities while controlling risk, SPA reported.
According to the statement, discussions centered on critical risks impacting international trade and the global economy, such as debt sustainability and geopolitical tensions, along with innovative approaches to risk modelling. Participants also explored the global shifts in infrastructure, energy and critical minerals sectors, and were given an overview of Saudi Arabia's National Industrial Strategy, which focuses on economic diversification through investments, developing new sectors, and promoting local industries.
In his opening remarks, Saudi EXIM CEO Eng. Saad bin Abdulaziz Al-Khalb said the meeting is an ideal platform to address risks impacting global economic decision making.
He stated: "Through such meetings, we can turn challenges into strategic opportunities and enhance our resilience in an ever-changing world. At Saudi EXIM, we remain committed to enabling companies by offering expert financial and non-financial solutions to navigate risks effectively."
He also said that "at Saudi EXIM, we place great emphasis on risk management. In alignment with the main objective of this meeting, I am pleased to announce the completion of our independent country risk model, which is supported by advanced modelling tools and machine learning. This model will provide country ratings and predictions of default risks. We look forward to collaborating with our partners in other export credit agencies to exchange knowledge and expertise, and to strengthening our risk management functions with greater responsibility and effectiveness."
Associate Director at Berne Union Eve Hall said: "The global risk landscape today is highly volatile and highly interconnected. As we navigate our way around the ongoing transformations connected to energy transition and shifting industrial strategies, the traditional concept of 'country risk' is becoming increasingly complex. Our industry excels at understanding, quantifying and pricing these risks, and by bringing together this community of experts for technical exchange the Berne Union is able to help support the development of the industry as a whole. The initiatives announced by our colleagues at Saudi EXIM, making use of new technology in risk analysis, provide a fantastic example of where collaboration in this field can be effectively applied."
The statement disclosed that Saudi EXIM's membership in Berne represents a significant strategic step, and is consistent with the Kingdom's commitment to expanding collaboration and integration in the global economy.
This is achieved by building partnerships with leading institutions to address the challenges facing the export credit sector. It also aligns with the bank's goal of developing the export of national products and services through partnerships with national and international financial and funding organizations.
Berne Union works with global trade organizations to encourage the adoption of best practices in export credit insurance, and to cooperate in maintaining the stability of global trade.
Saudi EXIM, a development bank under the National Development Fund, contributes to diversifying the Kingdom's economic base by improving the efficiency of non-oil export ecosystems, bridging financial gaps, and minimizing export risks. This plays a role in helping the non-oil national economy grow, in line with Vision 2030.