Saudi Arabia's Red Sea Global Plans IPO, REITs for Tourism Expansion

The Red Sea Global, a major project in Saudi Arabia, is set to launch a financing plan that includes an Initial Public Offering (IPO) and Real Estate Investment Trusts (REITs). The project, which is fully owned by the Public Investment Fund (PIF) of Saudi Arabia, aims to create luxurious tourism experiences across various domains including tourism, residential, hotel, wellness, infrastructure, and transportation.

The Red Sea project and the Amaala project are key initiatives under this umbrella, focusing on integrating sustainable natural landscapes with luxurious tourism experiences. These projects align with Saudi Arabia's Vision 2030, which aims to establish the country as a premier global tourism destination and diversify its economy beyond oil.

Currently, the Red Sea project has five operational resorts, with plans to open eleven more this year. These new resorts will be managed by renowned global hotel brands such as Fairmont, Four Seasons, Marriott, and others, and are expected to open between 2024 and 2025. The Amaala project, which focuses on health and wellness, is also progressing rapidly with its core infrastructure already completed and the first batch of hotels set to open soon.

In addition to these projects, the Thuwal Private Resort, fully owned and managed by the Red Sea Global, has also opened. This resort offers customized private experiences, catering to the growing demand for highly personalized and private tourism experiences. It will start receiving guests from early 2024.

The consideration of an IPO and REITs as financing options reflects the project's ambition to attract international investment and expand its global footprint. An IPO would allow the project to raise capital by selling shares to the public, while REITs would enable investors to own a stake in the project's real estate assets without the need for direct property management. Both options would provide the project with the financial resources needed to continue its development and expansion.

The Red Sea project's focus on sustainability and luxury tourism is expected to attract a diverse range of investors, from individual retail investors to institutional investors. The project's alignment with Saudi Arabia's Vision 2030 also makes it an attractive investment opportunity for those looking to support the country's economic diversification efforts. Overall, the launch of the financing plan is a significant step forward for the Red Sea project and a testament to its potential as a leading global tourism destination.