Saudi Arabia reportedly transferring management of Sindalah Luxury Island

 

Saudi Arabia to shift management of Sindalah Luxury Island for fast execution  

Saudi Arabia’s Public Investment Fund (PIF) is moving management of the Sindalah luxury island development away from its $500bn Neom project following delays in its opening, according to people familiar with the decision.

Red Sea Global — another PIF subsidiary with a record of delivering high-end resorts — is set to assume control of Sindalah, which features a marina for superyachts and an 18-hole golf course.

 

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Originally scheduled to open in early 2024, Sindalah held a soft launch for investors and VIP guests in October that year but remains closed to the public. The leadership change comes after Neom’s former chief executive, Nadhmi al-Nasr, was removed a month later amid growing concerns over delays, budget overruns, and management disputes. His successor, Aiman al-Mudaifer, has since launched a full review of Neom’s portfolio, with some projects expected to be scaled back, postponed, or cancelled.

Neom’s flagship developments include The Line, a futuristic 170km city; Oxagon, an industrial hub on the coast; and Trojena, a mountain resort due to host the 2029 Asian Winter Games. Several of these projects have already been downsized or face delivery challenges.

 

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By contrast, Red Sea Global has successfully launched multiple resorts in recent years, including properties under the Ritz-Carlton and St. Regis brands, and plans to unveil three more on Shura Island later this month. The group, led by CEO John Pagano, attracted around 50,000 visitors in 2024 — below its 300,000 target, but demonstrating operational progress compared to Neom.

The transfer of Sindalah aligns with the PIF’s practice of consolidating projects under subsidiaries with relevant expertise. Similar restructurings include the 2022 merger of SEVEN with Qiddiya and the integration of Amaala into Red Sea Global last year.

Source: Financial Times