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Cruise Saudi Announces Development of Private Red Sea Island for Cruise-Ship Tourism

The announcement was made during a ceremony held at Cruise Saudi’s headquarters in Jeddah. SPA
The announcement was made during a ceremony held at Cruise Saudi’s headquarters in Jeddah. SPA
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Cruise Saudi Announces Development of Private Red Sea Island for Cruise-Ship Tourism

The announcement was made during a ceremony held at Cruise Saudi’s headquarters in Jeddah. SPA
The announcement was made during a ceremony held at Cruise Saudi’s headquarters in Jeddah. SPA

Cruise Saudi, a company fully owned by the Public Investment Fund (PIF) and specialized in developing the Kingdom’s cruise tourism sector, announced the signing of a contract with PC Marine Services company to develop a private island in the Red Sea as an exclusive destination for cruise-ship passengers.
The announcement was made during a ceremony held at Cruise Saudi’s headquarters in Jeddah.
This project is a strategic step in Cruise Saudi's vision to enhance the cruise sector in the Kingdom, aligning with the goals of Saudi Vision 2030, which aims to diversify the national economy and increase the contribution of tourism to gross domestic product (GDP).
The new island will reflect authentic Saudi heritage through its design and diverse experiences, enhancing its status as the first of its kind in the Red Sea dedicated to cruise-ship passengers.
It is expected to be ready to welcome visitors by December 2024, positioning itself as a unique and prominent destination on the Kingdom's cruise tourism map.
The project aims to offer tourists a diverse range of recreational activities, both coastal and aquatic, complemented by a variety of unique facilities and services designed to create unforgettable experiences for all visitors. Among the amenities planned are a welcome center, dining area, beach club, private villas, sunbathing spots, and more. During the initial phase, the island will have the capacity to host up to 2,000 guests.
Cruise Saudi executive director of commercial and business development Mashhoor Baeshen said the project will significantly enhance the maritime tourism sector in the Kingdom, with the island poised to become a standout attraction for visitors exploring the Red Sea.
PC Marine Services president and chief executive Adnan Alshareef highlighted that the new island initiative presents a valuable opportunity to contribute to the advancement of the Kingdom's maritime infrastructure, fostering growth within the maritime tourism sector in alignment with the goals of Vision 2030.
PC Marine Services, a prominent player in the maritime project industry, has handled a diverse portfolio of significant projects, including the Obhur Waterfront Development project in Jeddah and the Cruise Berth Improvements project in Jeddah, Yanbu, and Dammam ports.

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Saudi Arabia Implements Real Estate Regulations to Stabilize Riyadh’s Market

The Saudi capital, Riyadh (SPA)
The Saudi capital, Riyadh (SPA)
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Saudi Arabia Implements Real Estate Regulations to Stabilize Riyadh’s Market

The Saudi capital, Riyadh (SPA)
The Saudi capital, Riyadh (SPA)

Amid rapid growth in Saudi Arabia’s real estate sector, fueled by the country’s economic diversification strategy, Crown Prince Mohammed bin Salman has introduced a series of regulatory measures in Riyadh. These steps aim to balance the capital’s real estate market, demonstrating the leadership’s commitment to providing sustainable and effective solutions for challenges in this vital sector.

Experts told Asharq Al-Awsat that rising property prices remain one of the biggest challenges in the real estate market. According to the General Authority for Statistics (GASTAT), the Real Estate Price Index increased by 3.6% in Q4 2024—the highest quarterly growth in six quarters—mainly driven by the residential sector, which accounts for 72.7% of the index.

Several factors are contributing to rising prices, including high demand for housing in major cities, large-scale development projects attracting investment, and improvements in infrastructure that increase property values.

Following an in-depth study by the Royal Commission for Riyadh City and the Council of Economic and Development Affairs, the Crown Prince’s directives focus on increasing housing supply and regulating market fluctuations to ensure fairness and stability.

Key Real Estate Measures

The newly announced policies include lifting restrictions on real estate transactions and development in several areas of Riyadh, covering 81.48 square kilometers. To meet housing demand, authorities plan to allocate between 10,000 and 40,000 residential plots annually over the next five years, with a price cap of SAR1,500 per square meter. Priority will be given to married citizens and individuals over 25 who do not own property, with applications processed through a new digital platform developed by the Royal Commission for Riyadh City.

To prevent speculative trading, new regulations restrict the sale, leasing, or mortgaging of land for ten years, except for construction financing. If a project is not completed within this period, the land will be reclaimed at its original purchase price.

Minister of Municipal, Rural Affairs, and Housing Majid Al-Hogail emphasized that these measures will help balance supply and demand while also revising the White Land Tax program to encourage property development. He also confirmed a comprehensive review of rental regulations, with amendments expected within 90 days.

Strong Demand for Real Estate

A report by JLL, a global real estate services firm, highlighted that despite a slowdown in construction projects across the Middle East and Africa in 2024, Saudi Arabia remained a strong performer. The Kingdom accounted for SAR29.5 billion in construction contracts, with significant activity in the hospitality, mixed-use, and entertainment sectors. The residential sector also performed well, with SAR7.9 billion in awarded contracts.

As Saudi Arabia prepares to host major global events, it may face challenges related to capacity and rising costs between 2025 and 2028. However, the government is addressing these issues by localizing industries, expanding infrastructure investments, accelerating digital transformation, and implementing regulatory reforms, with a focus on renewable energy and sustainability.

JLL’s Head of Projects and Development Services in Saudi Arabia, Maroun Dib, noted that strategic projects under Vision 2030 will continue attracting massive investments, creating expansion opportunities in the real estate sector. He added that major events like the FIFA World Cup and Expo will drive significant capital inflows, strengthening infrastructure development and setting the real estate sector on a solid growth trajectory beyond 2025.

Speaking to Asharq Al-Awsat, Khaled Al-Mobayed, CEO of Manassat Real Estate, stressed the importance of increasing housing supply to meet growing demand. He warned that failing to do so could lead to rising rental prices. Al-Mobayed suggested that expanding real estate development into smaller cities near major urban centers could ease pressure on large cities while providing affordable housing options.

Riyadh’s hospitality sector is experiencing rapid growth, driven by business tourism and international events. Average hotel room rates rose by 13.3% in 2024 to SAR239 per night, with 2,312 new hotel rooms expected in 2025. In Jeddah, religious and leisure tourism remains strong, supporting long-term growth despite minor market fluctuations.

Meanwhile, the retail sector in Riyadh is shifting toward experiential shopping, as consumers seek entertainment-driven retail experiences. Traditional shopping malls—especially enclosed malls—are facing declining occupancy rates. While large malls saw a 1.8% increase in lease rates in Q4 2024, community malls experienced stronger growth at 5.5%, whereas regional malls declined by 9.3%. A similar trend is visible in Jeddah, highlighting the need for more diverse and interactive retail spaces.

Industrial and Logistics Sectors on the Rise

Rising rental rates in the industrial and logistics sectors in Riyadh and Jeddah indicate strong market demand, fueled by economic diversification and the growth of e-commerce.

Additionally, the data center sector is rapidly expanding, driven by 5G technology and artificial intelligence. Riyadh, Dammam, and Jeddah now rank third in the Middle East and Africa for operational co-location data centers, contributing 12.6% of the region’s total IT capacity (1,050 megawatts) by the end of 2024. This positions Saudi Arabia for further digital infrastructure expansion.