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Saudi Arabia’s The Red Sea Development Company (TRSDC), developer of The Red Sea project, announced on Monday that it has entered into its first joint venture with local investor Almutlaq Real Estate Investment Company (AREIC), a subsidiary of the Al Mutlaq Group (AMG) to develop 159-key Jumeirah The Red Sea luxury resort.
The JV with AREIC, valued at over 1.5 billion Saudi riyals ($400 million), is TRSDC’s first partnership with the private sector, the Public Investment Fund-owned company said in a press statement.
Jumeirah The Red Sea is situated on The Red Sea destination’s hub island, Shura, which is scheduled to open in 2024, the statement said, adding that it will comprise 11 luxury, premium and lifestyle hotels and resorts, residential units, a championship golf course, 118 berth marina, and a comprehensive retail, dining, and entertainment offering.
TRSDC said it is in parallel discussions with several other investors under a similar framework to invest in The Red Sea Project’s commercial assets, including hotels and resorts, leisure, and retail and dining experiences.
“We have been studying the Giga Projects for some time, and the Red Sea is achieving its vision. The destination is coming to life, and we look forward to welcoming our first guests in 2024,” said Tariq Almutlaq, Chairman of AREIC.
In a separate statement, global law firm Ashurst said it advised AMG on the TRSDC-ARIEC partnership.
Partner Stuart James said the transaction reflects strong investor appetite for sustainable projects “and is indicative of the world class investment opportunities for private capital in the Red Sea Project.”
Earlier this year, TRSDC had achieved financial close on its 14.120 billion Saudi riyals ($3.76 billion) Green Financing for Phase 1 of The Red Sea Project.
(Writing by SA Kader; Editing by Anoop Menon)
