Saudi Arabia’s Tourism Development Fund has signed a financing agreement with a local developer for a major tourism project in the holy city of Medina. The fund, which is part of the country’s efforts to diversify its economy away from oil, signed the agreement with Dar Al-Qaswa for Development and Investment Company to finance a luxury hotel and resort complex. The project includes the construction of two five-star hotels, a mall, a banquet hall and a water park. The total expected cost of the project is around SAR 1.2 billion ($322 million).
The agreement was signed by the CEO of the fund, Qusai Al-Fakhri, and the Chairman of Dar Al-Qaswa, Dr. Ibrahim Al-Qasimi, in the presence of the Governor of Medina, Prince Faisal bin Salman.
The tourism fund was established in 2018 with a capital of SAR 15 billion and aims to support the growth of tourism in Saudi Arabia. The country has been investing heavily in its tourism industry in recent years as part of its Vision 2030 plan to reduce its dependence on oil income.
Medina, one of the most important cities in Islam, is home to the Prophet’s Mosque and attracts millions of religious tourists every year. The new development is expected to attract both religious and leisure tourists.
The agreement is the latest investment by the tourism fund in the country’s tourism sector. Earlier this year, the fund signed financing agreements worth SAR 160 million with two local companies for the development of four hotels in the holy city of Makkah.
The fund is also reportedly in talks with international investors to support the development of tourism projects in the country. Last year, the fund signed a memorandum of understanding with the World Bank’s International Finance Corporation to collaborate on developing the country’s tourism industry.
Saudi Arabia has set a target of attracting 100 million tourists annually by 2030, up from 41 million in 2019. The government’s plan includes the development of new tourist destinations, the expansion of existing ones, and the creation of more leisure activities for tourists. The country has already opened up its visa system, allowing tourists to obtain a visa more easily, and has announced plans to develop large-scale tourist resorts along its Red Sea coast.
Despite the challenges posed by the COVID-19 pandemic, Saudi Arabia remains committed to its tourism goals. The country has implemented strict measures to prevent the spread of the virus and has invested in new technologies and infrastructure to ensure the safety of tourists and residents.
Overall, Saudi Arabia’s investment in its tourism industry is a key part of its wider efforts to diversify its economy and reduce its dependence on oil income. The country has already made significant progress in this area, with the non-oil sector accounting for 54% of its GDP in 2020. As the country continues to invest in its tourism industry, it is likely to see further growth in this sector, creating new jobs and opportunities for its citizens.