Arab News

RIYADH: Saudi conglomerate Kingdom Holding Co. has incorporated a joint venture named East Shoura III Real Estate Co. to develop a tourist resort.

The JV was established between Kingdom Holding Co.’s wholly owned subsidiary, Sea Front Co., and The Red Sea Investment Co. II, a subsidiary of Red Sea Global Co., according to a Tadawul statement.

The resort, located on Shoura Island on Saudi Arabia’s west coast, will be operated by Four Seasons Hotels and Resorts.

On Oct. 24, Kingdom Holding Co. and RSG signed a deal worth SR2 billion ($533 million) to form this joint venture.

Kingdom Holding Co. said at that time that the resort under development would be operational by 2025, offering 149 rooms, along with six restaurants and lounge outlets.

“This partnership strengthens our unwavering commitment to transforming the tourism landscape in Saudi Arabia. We share a common vision of creating extraordinary destinations that drive economic growth and job creation and preserve precious ecosystems, aligning perfectly with the aspirations outlined in Vision 2030,” said John Pagano, CEO of RSG, in October.

Kingdom Holding Co. CEO Talal Ibrahim Al-Maima said the partnership with RSG “will form part of our broader strategy on further investments in the Saudi Arabian high-growth market.”

Al-Maiman added: “We are proud to partner with RSG in the execution of one of the Kingdom’s most exciting projects and look forward to creating value for our respective shareholders.”

The collaboration between RSG and Kingdom Holding Co. comes when tourism in the Kingdom is experiencing remarkable growth.

Earlier this month, data released by the Ministry of Tourism said that Saudi Arabia witnessed a 142 percent surge in the first half of 2023, with 14.2 million visitors traveling to the Kingdom.

The report added a 132 percent increase in spending by inbound travelers over the same period, registering SR86.9 billion.

“With the continuous development of the tourism sector, there has been an increase in the number of (inbound) tourists for all purposes, with leisure tourists showing the highest growth at 347 percent versus the first half of 2022,” said the ministry.