The Red Sea Development Company and Amala intend to plan to accumulate the assets of the Amala project after its completion in a real estate investment fund backed by the hotel portfolio, with the aim of attracting a larger number of investors. After listing this project on the Saudi Stock Exchange.
According to Arab Net, CEO of the company John Pagano said: We can see it as early as 2024 to 2025. We need to open hotels, we need to get up and operate and stabilize reasonably so that the right cash is generated.
The Amala project is being built on the northwest coast of Saudi Arabia alongside the Red Sea project, which is part of the kingdom's efforts to diversify its economy by promoting new sectors such as tourism. Both are green projects, using renewable energy.
This comes after Pagano said that the project intends to raise up to 10 billion riyals ($2.67 billion) next year for the Amaala project, for the first phase.
The planned green financing for the AMAALA project will follow a larger loan raised earlier this year for the Red Sea Project.
We'll probably hit the market sometime next year for Amaala funding specifically for the first phase of the project, Pagano said.
He added that the loan is likely to range between five and ten billion riyals and comes after 14 billion riyals raised earlier this year. My sense said it's likely to be at the minimum funding target.
Four Saudi banks provided a loan for the Red Sea Project to finance 16 new hotels. Pagano explained that the targeted funding for the Amala project will be for nine hotels in the first phase of the project, adding that the plan aims to open these facilities in 2024.
Amaala and the Red Sea Project Company, both 100% owned by the Public Investment Fund, will be merged under the name Red Sea Group by the end of this year.
He indicated that the two projects are expected to create 120,000 jobs by 2030, of which 70,000 direct jobs and 50 thousand indirect jobs.
