Red Sea Global Secures SAR 6.5B for AMAALA Project
Red Sea Global (RSG), the developer behind the ambitious AMAALA project, has successfully secured SAR 6.5 billion (approximately $1.73 billion) in financing to propel the next phase of its development. This funding, provided by a consortium of Saudi banks led by Riyad Bank, marks a significant step in advancing sustainable tourism in the region.
Details of the Financing Agreement
The financing arrangement involves a combination of conventional and Islamic loans, structured in accordance with RSG’s Green Loan Framework. This framework adheres to international sustainability lending standards and was first established in 2021 when RSG obtained its initial green financing for The Red Sea project, which was notable for being the first Riyal-denominated green loan in Saudi Arabia.
Riyad Bank served as the sole underwriter for this latest financing, with The Saudi Investment Bank (SAIB) and Bank AlBilad acting as mandated lead arrangers. This partnership builds on RSG’s previous collaboration with Riyad Bank, which included SAR 2 billion in debt financing for a joint venture with Kingdom Holding Company to develop the Four Seasons Resort on Shura Island, set to open later this year.
Investor Confidence in Sustainable Tourism
John Pagano, CEO of RSG Group, emphasized that this new financing agreement reflects the confidence investors have in the company’s capacity to execute large-scale sustainable tourism projects. He stated, “We have demonstrated that we are a developer who delivers, and we’re proud that our financing partners once again back our destinations — this time supporting AMAALA, which opens in the coming weeks.”
Nadir Al-Koraya, CEO of Riyad Bank, described AMAALA as an “ambitious, sustainability-driven destination that will redefine wellness and luxury tourism.” He highlighted how the project aligns with Saudi Arabia’s Vision 2030, which aims to diversify the economy and promote environmental stewardship.
Gregory Djerejian, RSG’s Group Head of Investments and Chief Legal Officer, noted that this financing reinforces a shared commitment to responsible development and underscores the financial sector’s increasing support for green initiatives in the Kingdom.
Features of the AMAALA Project
Located at Triple Bay, AMAALA is set to open later this year and will feature over 1,400 hotel rooms spread across eight luxury resorts. The project emphasizes ultra-luxury wellness and regenerative tourism, incorporating unique facilities such as the Corallium Marine Life Institute, which will serve as a hub for scientific research and education, and the AMAALA Yacht Club, aimed at becoming a premier center for luxury yachting in the region.
This SAR 6.5 billion financing not only represents a significant milestone for RSG but also highlights the expanding green investment landscape in Saudi Arabia, showcasing the country’s commitment to sustainable tourism along the Red Sea coast.
FAQs
What is the AMAALA project?
AMAALA is a luxury tourism development located at Triple Bay in Saudi Arabia, focusing on wellness and regenerative tourism, featuring multiple resorts and unique facilities.
Who provided the financing for AMAALA?
The financing was secured from a consortium of Saudi banks led by Riyad Bank, with additional support from The Saudi Investment Bank and Bank AlBilad.
How does this financing align with Saudi Arabia’s Vision 2030?
The financing supports the development of sustainable tourism, which is a key component of Saudi Arabia’s Vision 2030 initiative aimed at economic diversification and environmental stewardship.
Conclusion
The successful acquisition of SAR 6.5 billion in financing for the AMAALA project underscores Red Sea Global’s commitment to sustainable tourism and reflects growing investor confidence in the sector. As the project moves forward, it promises to enhance the region’s luxury tourism offerings while aligning with national sustainability goals.
The AMAALA project is part of a broader strategy by the Saudi government to position the country as a leading destination for luxury tourism. This initiative not only aims to attract international visitors but also seeks to create job opportunities and stimulate local economies. The emphasis on sustainable practices within the project aligns with global trends in tourism, where eco-conscious travelers increasingly seek destinations that prioritize environmental responsibility.
As the AMAALA project progresses, it is expected to contribute significantly to the region’s infrastructure development, including transportation and hospitality services. The integration of advanced technologies and sustainable practices in construction and operations will likely serve as a model for future projects in Saudi Arabia and beyond, reinforcing the importance of balancing economic growth with ecological preservation.
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