Red Sea Global eyeing on 100 potential international locations to expand
Red Sea Global, the tourism
development company owned by Saudi Arabia’s Public Investment Fund (PIF), is
set to expand beyond its core base on the country’s western coast, with new
projects planned both domestically and internationally.
Sébastien Carre, Head of Hospitality
at Red Sea Global, revealed during the Arabian Travel Market in Dubai that the
company intends to announce a new project in a Saudi city later this year.
While he did not disclose specific details, Carre confirmed that the company is
actively pursuing broader growth opportunities.
Read More Red
Sea Global venturing into hotel management
In addition to domestic ventures,
Red Sea Global is evaluating over 100 potential international locations deemed
“A-plus targets,” Carre said, signaling a bold move to take its luxury-focused
model overseas.
At home, the company plans to open
11 new hotels across its flagship Red Sea and Amaala developments in 2025.
Among its latest projects is the Thuwal Private Retreat, a collection of
exclusive islands near Jeddah, which began accepting bookings late last year.
According to Carre, occupancy at Red Sea Global's hotels currently stands
between 50% and 60% — a strong showing for properties in their inaugural year.
Red Sea Global is a central player
in Saudi Arabia’s Vision 2030 agenda, which aims to diversify the kingdom’s
economy beyond oil. It is one of five major "giga-projects" supported
by the PIF, alongside Neom, Qiddiya, Diriyah, and Roshn.
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at the core of Red Sea Global’s projects
However, this expansion comes amid
mounting fiscal pressure. The PIF, with assets of around $940 billion, is
facing tighter budgets as falling oil prices weigh on Saudi Arabia’s revenues.
Oil still accounts for approximately 60% of the government’s income and nearly
75% of its exports.
Despite these economic headwinds,
Red Sea Global remains optimistic. The company targets an affluent clientele,
offering premium experiences such as yacht charters and seaplane transfers.
Carre believes this market is more resilient in the face of economic downturns.
“High-net-worth travelers aren’t
likely to cut back on key leisure experiences. They’ll still go skiing, visit
beach resorts, and explore cultural cities each year,” he said. “The higher the
segment, the less sensitive it is to fluctuations in disposable income.”
Source: msn.com
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