Saudi Arabia's Al Balad Development Co., fully owned by the Public Investment Fund, has launched a $3.6 billion investment portfolio for the hospitality sector, state TV reported on Tuesday.

The company aims to develop more than 3,300 hotel units across categories from mid-scale to luxury through flexible investment and financing models, including public-private partnerships and investment funds, the report said.

The initiative is part of the kingdom's push to diversify its economy beyond oil by expanding tourism and hospitality, a pillar of its Vision 2030 reform plan.

(Reporting by Jana Choukeir and Nayera Abdallah; Editing by Joe Bavier)