Red Sea Development, Saudi Arabia
Developing a new luxury destination in Saudi Arabia
Location: The Kingdom of Saudi Arabia
Date started: 2018
Completion date: 2023
Client type: Real estate
Key services: Advisory, cost and commercial management, procurement, programme strategy and set up
Located 500km north of Jeddah on the Red Sea coast, the project is one of three ‘giga,’ transformational schemes under the Public Investment Fund (PIF). The destination comprises 28,000 square km of islands, beaches, desert, mountains and volcanic areas.
The project not only requires the construction of new hotels, beach fronts and recreational sites, but also necessitates the full installation of all major infrastructure works and utilities, from power and water generation to sewer systems and treatment facilities, roads and highways, marinas and shipping routes. All utilities will be off-grid.
Changing the face of tourism
The project is expected to increase the Saudi GDP by $5.86bn annually on completion. The first phase, which will include 16 luxury hotels, an airport and a marina, plans to welcome its first guests by the end of 2022, with the overall first phase completed by 2023.
In total, the scheme is expected to create 70,000 new jobs and attract a million visitors a year. It also aims to not only protect, but actually enhance the environment by using renewable sources, all while delivering a destination which aspires to set new standards in sustainable development.
The Red Sea Development Company’s ambition is to increase the conservation value of this destination by up to 30 percent over the next 20 years, demonstrating that the environment and development do not have to be mutually exclusive.
Managing project challenges
The sheer size of the development is particularly challenging, given the amount of work intended to be undertaken in such a remote location. But using our expertise in infrastructure and in the property sectors, we have been able to provide the client with the assurance needed to undertake financial planning.