Saudi Airlines Catering Company (SACC) has signed two concessions worth nine billion Saudi riyals ($2.4 billion) with Red Sea Global (RSG), a wholly-owned subsidiary of the Public Investment Fund.

The first is a design, build, operate and transfer (DBOT) contract for a central production unit for catering and facilities management to service RSG’s employees at hotel establishments and resorts, in addition to other facilities and sectors within the Red Sea destination, SACC said in a statement to the Saudi stock exchange.

The contract term is 20 years, with the contract’s value estimated at SAR6.3 billion.

The second DBOT is for a central laundry to provide laundry services for hotels and resorts, in addition to other facilities and sectors within the Red Sea destination, the company said in a separate statement.

The 20-year contract has an estimated value of SAR2.7 billion.

The two contracts, which are subject to RSG board’s final sign-off, are part of the strategic plan implemented by SACC to attract investment opportunities in new industrial and tourist cities, the statements said.

(Writing by D Madhura; Editing by Anoop Menon)

(anoop.menon@lseg.com)