PIF's BDC to invest $3.6B to develop hotels in historic Jeddah

Logo of Al Balad Development Co. (BDC)

Al Balad Development Co. (BDC), owned by the Public Investment Fund (PIF), announced the launch of a $3.6 billion investment portfolio to develop hospitality assets in Historic Jeddah from 2025 to 2038.

The portfolio aims to build more than 3,300 hotel rooms across multiple categories, including 325 luxury hotels, 758 upscale hotels, 664 high-end hotels, 1,246 mid-range hotels, and 422 budget hotel apartments, the company said in a statement.

The projects will be implemented through various investment models, including build-operate-transfer (BOT) contracts, public-private partnerships, and investment funds.

According to Argaam's data, the company was established in 2023 to be the main developer of Jeddah Historic District (Al Balad), with a focus on improving the district’s infrastructure, overseeing the restoration of historic buildings and developing service facilities as well as recreational, residential, commercial, hotel and office spaces.

The project’s land area spans approximately 2.5 million square meters (sqm), with a total built-up area of 3.7 million sqm. This includes 9,300 residential units, 1,800 hotel keys and around 1.3 million sqm of commercial and office spaces.

In 2021, Crown Prince Mohammed bin Salman launched the “Revitalizing Historic Jeddah” project as part of the Historic Jeddah Development Program.