Saudi Arabia’s Tourism Development Fund signed an agreement with Riyadh Bank and Banque Saudi Fransi to finance up to 160 billion riyals ($43 billion) of tourism projects in the kingdom, state news agency SPA reported.
The deal, signed Monday, September 28, will “set up mechanisms to finance tourism projects across the kingdom,” Reuters reports. The fund was founded in June with an initial $4 billion investment, and is part of plans to diversify the economy in the face of the coronavirus pandemic and low oil prices.
The agreement was signed by the fund’s CEO Qusai Al-Fakhri, the CEO of Riyadh Bank Tareq Al-Sadhan, and the managing director and CEO of Banque Saudi Fransi, Rayan Fayez, in the presence of Saudi Minister of Tourism and chairman of the fund’s board of directors, Ahmad Al-Khateeb.
Ahmed bin Aqeel Al-Khateeb.
“This agreement includes defining ways of cooperation between the fund and the participating banks by setting up mechanisms to support financing tourism projects in various regions of the Kingdom,” according to a statement carried by Arab News. It said the agreement was one of the fund’s efforts to encourage and stimulate investments in the tourism sector and support the private sector, including support for small and medium-sized enterprises (SMEs), by providing a number of financial products.
Saudi Arabia is going full speed ahead on tourism development as part of its Vision 2030 economic and social reform drive and overall plan to diversify its economy. The Kingdom is developing both new tourist destination spots as well as restoring historic and culturally significant sites across Saudi Arabia.
In the northwest part of the Kingdom is Saudi Arabia’s planned NEOM, which is seeking to be a new futuristic hub where east meets west on the Red Sea that is powered by green energy and which will boast an unmatched quality of life for residents and visitors. Down the coast, Saudi Arabia is starting from scratch on the sustainable development of several resorts and destinations which aim to attract vacation-goers in from both the Kingdom and abroad, with Amaala, an ultra-luxury area, as a hot spot.
Saudi Arabia is also developing Al-Ula and its surrounding areas, carefully preserving and discovering more about the history at that site while building the infrastructure to attract visitors.
The Kingdom is also investing heavily in its cities. In Riyadh, new areas for sports and recreation, as well as a new, massive theme park just outside the city in Qiddiya will provide Saudis and visitors with a world-class entertainment venue. Riyadh will also develop a new area called Riyadh Gate.
