Al Balad Development Company, a subsidiary of Saudi Arabia’s Public Investment Fund (PIF) and the master developer of the Historical Jeddah (Al-Balad) revitalization project, has launched a $3.6 billion hospitality investment portfolio aimed at developing and restoring hotel assets across the district.
The initiative, announced during the TOURISE Global Tourism Summit in Riyadh, covers projects running from 2025 to 2038 and targets the creation of more than 3,300 hotel units, ranging from mid-scale to luxury. The projects will be financed through flexible models, including public-private partnerships and specialized investment funds.
According to Al Balad Development Company CEO Jamil Hasan Ghaznawi, the announcement marks a major milestone in transforming Historical Jeddah into a global tourism and cultural hub that blends heritage preservation with sustainable economic development.
“This step combines leadership in urban renewal with the empowerment of the private sector,” Ghaznawi told Asharq Al-Awsat. “It will create long-term investment opportunities within one of the Kingdom’s most unique heritage environments.”
He explained that the $3.6 billion investment will be distributed across multiple projects, each with its own timeframe and return profile. Revenues are expected to come from year-round operations supported by Jeddah’s diverse tourism base, including business, leisure, pilgrimage, and cultural visitors.
He said: “Al-Balad is a living destination. Its steady flow of residents, merchants, and tourists ensures sustainable annual returns beyond seasonality.”
Ghaznawi added that the financing strategy does not rely solely on self-funding. Instead, Al Balad Development Company aims to diversify investment sources through partnerships with local and international private investors and by establishing dedicated investment funds.
He emphasized that this approach complements the role of sovereign funds in enabling domestic investment and strengthening collaboration between the public and private sectors.
Regarding infrastructure, Ghaznawi affirmed that the district’s heritage identity will remain untouched. The area is subject to defined urban guidelines and strict architectural standards to ensure all restoration and construction adhere to authentic Hejazi style while harmonizing with contemporary design.
Projects will be carried out in phases from 2025 to 2038 to preserve the historic urban fabric and maintain smooth movement within the district. Every new development, he noted, requires official restoration or construction permits from the relevant heritage authorities.
The launch underscores Al Balad Development Company’s commitment to restoring and sustaining Historic Jeddah in line with the PIF’s objectives and Saudi Vision 2030 to diversify the national economy and expand investment in tourism, hospitality, and culture.
Through its strategic projects, the company seeks to breathe new life into Jeddah’s historic heart, transforming it into a thriving economic ecosystem that preserves its cultural and architectural legacy, while opening new horizons for sustainable growth.
