Overview

Saudi Arabia’s Tourism Development Fund (TDF) has recently signed two new memoranda of understanding (MoUs) to accelerate tourism development in King Abdullah Economic City (KAEC). These agreements aim to align high-quality tourism investments with the National Tourism Strategy and Saudi Vision 2030, thereby enhancing the competitiveness of KAEC as a coastal destination on the Red Sea.

Key Agreements

The main MoU is between the TDF and Emaar, the master developer of KAEC. This agreement will establish a detailed framework for planning, developing, and operating tourism projects to elevate the city into a world-class coastal destination. The initial phase focuses on creating a diverse tourism portfolio that includes all-inclusive resorts, renowned hotel brands, and a range of lifestyle-focused destinations.

Planned Developments

• Two five-star beachfront resorts.
• Premium branded residences operated by global hospitality brands.
• Enhanced waterfront access and beach clubs.
• Signature dining, wellness facilities, yachting, and family attractions.

These developments aim to improve the appeal of KAEC, enhance the quality of life, and attract foreign direct investment.

Commentary

Qusai Al-Fakhri, CEO of the TDF, stated that the MoUs reflect the Fund’s expanding role in aligning efforts between the public and private sectors to deliver impactful tourism projects. He emphasized the TDF’s contributions toward preparing KAEC to attract renowned global hospitality brands and long-term capital investment.

Additionally, a second MoU has been signed with K. Hovnanian M.E. Investments, focusing on supporting investment readiness and ensuring that tourism projects in KAEC meet international standards. Abdulaziz Alnowaiser, CEO of Emaar, noted that these partnerships enhance KAEC’s position as a premier coastal destination.

Robert Hofmann from K. Hovnanian highlighted that the MoU establishes a strong foundation for knowledge sharing and collaborative project development, further supporting Saudi Arabia’s goals in the global tourism arena.

As Saudi Arabia continues its ambitious tourism strategy, the TDF is set to play a pivotal role in fostering high-quality, experience-led tourism aimed at attracting international visitors and investors.