ROME  - State-backed Saudi developer Red Sea Global is taking over the troubled Sindalah island resort, its CEO confirmed for the first time, ‌as the kingdom moves to salvage one of the sorest stumbles in its Vision 2030 plan.

"It hasn't officially been handed over but it will, and when it ​does we will then assume responsibility for it. We'll assess how to complete it and bring it back to life," John Pagano told Reuters on the sidelines ​of a ​Saudi business conference in Rome.

The decision to hand Sindalah to Pagano reflects his standing as one of the more proven executives in the kingdom's sprawling sovereign wealth fund ecosystem, with a record of delivering tourism projects.

Originally part of the NEOM megacity development, ⁠the multibillion-dollar Sindalah development has never opened to the public despite a VIP launch party in autumn 2024 attended by celebrities on superyachts.

The launch event was marred by shoddy finishing on the development, which three sources familiar with Sindalah's operations said was seen as an embarrassment.

NEOM Chief Executive Nadhmi al-Nasr was removed from his post weeks after the launch.

"In the rush to finish they got it wrong," said one of the sources, "and it was ​the straw that broke ‌the camel's back for Nadhmi."

The ⁠Financial Times reported last ⁠year that Red Sea Global was in line to take over the island.

"I think the issue there was there were unrealistic timelines set for delivery," Pagano ​said.

"It shouldn't have opened like that."

BATTERED BY WIND AND WAVES

Sindalah's problems run deep.

The marina lets waves ‌roll in for much of the year, rocking the few boats that have moored there, ⁠the sources said.

The island is also frequently hit by strong winds, a factor not properly accounted for due to inadequate assessments before construction began, they added.

'WE DID IT DIFFERENTLY'

Red Sea Global has 14 resorts open across the Red Sea coast, rising to 25 by end of August and 27 by year-end, Pagano said. It is now adding resorts priced around $400 to $500 per night, after criticism over the prohibitive pricing of initial ultra-luxury offerings at about $2,000.

The transfer also reflects a broader shift in Vision 2030, the kingdom's drive to diversify its economy away from oil.

NEOM's The Line, once envisioned as a 170-km (106 ‌mile) linear city, has been sharply scaled back and Saudi Arabia no longer plans to complete ⁠it by 2030.

Construction of the Mukaab, a vast cube-shaped structure planned for central Riyadh, has ​also been suspended as projects that can deliver returns are prioritised.

Pagano said Red Sea Global's delivery record stems from building in-house expertise rather than relying on contractors.

He was granted Saudi citizenship last year, underscoring the value placed on his work.

"We did it differently ... I didn't want to follow the business as usual ​model which was to ‌bring in third parties," he said.

"We built capabilities. We retained the knowledge... If you hire third parties to ⁠come, they'll come and develop and help you deliver, ​but the knowledge and experience disappear with them."

(Reporting by Timour Azhari in Rome. Editing by Alex Richardson and Mark Potter)