Saudi Arabia’s Tourism Development Fund (TDF) has signed a tripartite partnership agreement with UK-based global hospitality company Ennismore and local investment firm Al Rajhi Capital to establish a hospitality investment fund with capital of 1.5 billion Saudi riyals ($400 million).

The fund plans to develop modern lifestyle hotels across various tourist destinations within the Kingdom, the state-owned Saudi Press Agency (SPA) reported, citing a TDF statement.

Under the agreement, the parties will identify locations and provide financing options for projects, the SPA report said.

TDF will invest in the newly established fund, Al Rajhi Capital will manage the investment fund and attract investments while Ennismore will develop and operate the projects under its brands, the report added.

In October 2021, TDF and Ennismore had signed a MoU to launch a fund to bring Ennismore’s brands to at least 12 destinations in the Kingdom.

(Writing by D Madhura; Editing by Anoop Menon)