Red Sea, Amaala combined contracts hit over SAR 30 bln: TRSDC CEO

John Pagano CEO of The Red Sea Development Co. (TRSDC)

The Red Sea and Amaala giga projects have awarded over 1,250 contracts worth more than SAR 30 billion ($8 billion), according to John Pagano, CEO, The Red Sea Development Co. (TRSDC).

Over 70% of these contracts, which spans different sectors such as construction, hospitality, transport, and smart tech, have been awarded to Saudi firms, he wrote in the “Investment Highlights Q2 2022” report, released by the Ministry of Investment. .

The Red Sea Project and Amaala, both of which are now being developed by TRSDC, are projected to contribute nearly SAR 33 billion ($8.8 billion) to the Kingdom’s economy on completion. The projects will create 120,000 direct, indirect and induced jobs, including comprehensive training programs for the next generation of Saudi talent.

Pagano said the company is seeing strong private sector confidence and a willingness to invest in their projects. He cited the recent SAR 1.5 billion ($400 million) joint venture agreement with Almutlaq Real Estate Investment Co., a subsidiary of the Al Mutlaq Group, to develop Jumeirah The Red Sea on Shura Island.

This follows TSRDC’s close of a SAR 14.12 billion ($3.76 billion) green financing agreement with four leading Saudi banks, in addition to a partnership established in 2021 with a consortium led by ACWA Power, which brought in foreign direct investment from the UK’s Standard Chartered Bank and China’s Silk Road Fund.

“We are also in parallel discussions with other investors for opportunities to invest in The Red Sea Project’s commercial assets, including hotels and resorts, leisure, retail, and dining experiences,” the CEO stated.

Pagano said phase one of the Red Sea project is already more than 50% complete and several key assets are fully operational, including a four-star management hotel, on-site offices, and the largest landscape nursery in the region.

“We have already awarded over 1,000 contracts worth over SAR 25 billion ($6.66 billion), and work is on track to welcome the first guests in early 2023,” he stated.