Saudi Arabia’s Tourism Development Fund (TDF) has signed a tripartite agreement with global lifestyle hospitality company, Ennismore, and Al Rajhi Capital, one of Saudi Arabia’s leading asset managers.
The agreement aims to create a hotel investment fund with a capital of SAR 1.5 billion.
Through this agreement, TDF will enable investments to boost tourism in line with Saudi Arabia’s national tourism strategy, aimed at providing a variety of leisure facilities and dining experiences.
These efforts are expected to provide around 2,000 hotel rooms and training opportunities for Saudi nationals, while improving the quality of investment opportunities and offers in the sector.
The signing of the agreement to establish the fund complements the initial memorandum of understanding signed by TDF and Ennismore to launch an investment fund, which focused on developing lifestyle hotels in the kingdom, during the 5th edition of the Future Investment Initiative (FII) in October 2021.
The new deal will see the entities identify locations and provide funding options for projects across the kingdom. While TDF will invest in the newly created investment fund, Ennismore will lead the development and operation of these projects under the umbrella of its lifestyle brands. Al Rajhi Capital will manage the investment fund and attract investment.
Qusai Al Fakhri, CEO of TDF, said: “Joining forces with Ennismore and Al Rajhi Capital is another positive step towards realizing our ambitions to advance the tourism sector. We seek to continually offer new and diverse options for the private sector to invest in the growing hospitality sector, with a view to enriching the visitor experience while achieving sustainable tourism and economic development.
Gaurav Bhushan, Co-CEO of Ennismore, said: “Our partnership with TDF and Al Rajhi is an important part of our growth strategy for the region. Ennismore is pleased to further solidify its commitment to the growing Saudi hospitality sector by employing, training and advancing national skills, as well as providing tourism services that would establish closer ties with international and local tourists.
Waleed AlRashed AlHumaid, CEO of Al Rajhi Capital, said: “The agreement reflects the importance of partnership between the private and public sectors, let alone opens up lucrative investment opportunities where capital can be invested in programs national tourism industry-oriented. shifted to the development of modern and sustainable tourist destinations, capitalizing on the extraordinary potential and richness of our national heritage, tourism and monuments that help attract more local and global investment and bring us closer to achieving our goals national economies.