Red Sea, Kingdom Holding sign SAR 2 bln deal to develop tourist resort

Logos of Kingdom Holding Co. and Red Sea Global

Red Sea Global (RSG) entered into a joint venture agreement worth SAR 2 billion with Kingdom Holding Co. to develop a tourist resort, to be operated by the Four Seasons hotels and resorts group, on Shura Island on Saudi Arabia’s west coast.

According to a RSG statement, the project, which is set to open in early 2025, is owned equally by RSG and Kingdom Holding.

The resort will include 149 hotel units and suites and 31 residential properties, in addition to six restaurants, a bundle of outlets in the halls, spaces for meetings and events, a marine discovery center, and entertainment spaces for children.

The statement indicated that Shura Island will provide 11 resorts and residential properties, in addition to an 18-hole championship golf course, a marina with 118 berths, and an exceptional retail experience, in addition to diverse choices for dining and entertainment.

The project entails forming a joint venture company, 50% of which will be owned by a special purpose entity (SPE) wholly owned by Kingdom Holding, and the remaining 50% by a SPE owned by Red Sea Global Company, Kingdom Holding said in a statement to Tadawul.

Each company is obligated to invest an amount of SAR 258 million in the project through their SPEs. Meanwhile, the remaining capital commitments will be financed by borrowing from the project company.

The project does not include any related parties, and any fundamental developments will be announced in due course, Kingdom Holding added.