Saudi private sector growth drops to 9-month low amid omicron concerns: IHS Markit
RIYAD: The Red Sea Development Co., known as TRSDC, has made great strides in its mission to build the world’s largest renewable-powered tourist site on the west coast of Saudi Arabia.
The TRSDC, owned by the Kingdom’s PIF, was created in 2018 to lead the development of the Red Sea project, known as the TRSP. This is one of the major large-scale giga projects announced by Crown Prince Mohammed bin Salman the previous year.
Earlier this month, a Saudi consortium led by ACWA Power secured $ 1.33 in funding to operate the renewable energy-based multi-service infrastructure that will serve the site.
The multibillion-dollar project, based between the towns of Umluj and Al Wajh, covers 28,000 square kilometers – an area the size of Belgium – which includes more than 90 unspoiled islands, miles of desert dunes and mountain landscapes.
Alignment with Vision 2030
The TRSP, as part of the Kingdom’s giga-projects, is part of its Vision 2030 roadmap which aims to diversify the economy and reduce dependence on oil. The plan aims to increase tourism revenues from 3% to 10% of gross domestic product when completed in eight years.
Growing public sector infrastructure also means new opportunities for local citizens. The company is expected to create a significant number of jobs, with the aim of employing around 60,000 people directly and another 60,000 indirectly.
This will contribute to the Kingdom’s plans to increase Saudi Arabia’s employment rate and increase women’s labor force participation from 22% to 30% by 2030.
The TRSDC also partnered with the government’s Human Resources Development Fund last August to deliver high quality local vocational training programs.
The move follows a series of steps the company has taken previously to create local opportunities, such as a program to prepare 500 young Saudis for careers in order to support the eco-tourism complex.
Contribution to the Saudi economy
The Red Sea project is expected to contribute up to SR 22 billion ($ 5.9 billion) to the Kingdom’s GDP when completed.
It also aims to attract 1 million tourists per year, without compromising the region’s natural resources.
The Red Sea Development Co. achieved an overall score of 91 out of 100 in this year’s Environmental, Social and Governance Assessment by the Global Real Estate Sustainability Benchmark, beating the score of 84 it achieved in its most recent year. first evaluation last year.
This places the company in the top 20 percent of organizations participating in this year’s assessment.
In November 2021, the company received the ESG Initiative of the Year award at the 2021 Chartered Governance Institute UK & Ireland awards.
This followed the TRSDC launch of its Good Governance Toolkit a month earlier to guide other organizations in Saudi Arabia to governance best practices.
Chronology of the TRSP
The final quarter of 2022 will see the completion of the first phase of the project, which includes the construction of 16 hotels with 3,000 rooms on five islands and two sites inland. This stage will also see the development of air, land and sea transport hubs.
Recently, the company announced that it has signed an agreement to operate nine hotels that are slated to open in the first phase next year.
The plan will see the site host a luxury marina, an 18-hole golf course, leisure facilities and an international airport which is expected to accommodate up to one million passengers by 2030. The hub has been officially registered with the International Air Transport Association in December.
When complete, TRSP will include up to 50 hotels with 8,000 hotel rooms and 1,300 residential properties on 22 islands and six locations inland.
The project developer has so far awarded more than 800 contracts worth over SR18 billion through November.
What awaits us in 2022?
In addition to welcoming its first visitors in the last quarter of next year, the Red Sea Development Company aims to raise up to SR 10 billion in green funding for Amaala – another luxury tourist site under development. along the northwest coast of the Red Sea – which recently merged with the company.
Amid the uncertainty produced by the pandemic, the TRSDC has performed well, marking important milestones as it moves to new heights for the Kingdom’s tourism sector.