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Saudi Arabia secures $400 million fund to bolster hospitality sector
The investment fund will develop lifestyle hotels and enhance tourist destinations within the kingdom.
Saudi Arabia’s Tourism Development Fund (TDF) has entered into an agreement with London-based creative hospitality company Ennismore and Al-Rajhi Capital to establish a $400 million (SAR 1.5 billion) hospitality-focused investment fund.
The announcement follows an agreement in October 2021 between the two parties, who signed a memorandum of understanding to launch the fund as announced during the fifth edition of the Future Investment Initiative.
According to the Saudi Press Agency, the collaboration aims to advance lifestyle hotels and enhance tourist destinations within the kingdom.
“This partnership marks an important milestone towards fulfilling the targets of the National Tourism Strategy to consolidate the Kingdom’s position as a global tourist destination by leveraging the promising opportunities the Saudi tourism sector presents,” Qusai Al Fakhri, CEO of TDF, said in a statement.
The two entities will provide financing for locations within Saudi Arabia. TDF will invest in the newly established investment fund, while Ennismore will lead in developing and operating these projects under the umbrella of its lifestyle brands. Al Rajhi Capital will manage the investment fund and attract investments, as per a press release.
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