Saudi Arabia's ambitious Red Sea Development Company (RSDC) is reportedly considering a public market offering as early as 2026, with the aim of transforming the nation into a top tourism destination. The company has initiated preliminary discussions with banks and stakeholders to explore this potential move, which could be realized between 2026 and 2027 after their hotels have been operational for approximately two years.
The Red Sea project was first unveiled in 2017, encompassing an expansive area of 28,000 square kilometers (11,000 sq miles). Designed to cater to both regional and international luxury travelers, it will feature three main resorts alongside thirteen smaller ones by the year 2024.
This development initiative represents a crucial step in diversifying Saudi Arabia’s economy beyond its current reliance on oil revenues. "Our vision for the Red Sea Project is not only about driving economic growth but also creating new opportunities within our thriving tourism sector," says Ahmed Al-Khatib, Chairman of RSDC.
The first phase of this groundbreaking venture is slated for completion by late-2024. Upon its conclusion, it will bring forth several high-end hotels and an international airport connected to key cities worldwide. These facilities are expected to add roughly 4,200 rooms along Saudi Arabia's western coastline – significantly boosting local capacity for accommodating tourists from around the globe.
According to John Pagano, CEO of RSDC: "We believe that opening up our shares for public ownership aligns perfectly with our long-term strategy focused on sustainable growth while showcasing our commitment towards transparency and good governance."
Investors are eagerly monitoring these developments as they unfold due to their potential implications on business expansion opportunities within hospitality sectors across the region.
Notably among them is Fahad Al-Rasheed - Group CEO & Managing Director at Emaar Economic City - who expresses enthusiasm for the project's prospects. "The Red Sea Development Company’s public offering will undoubtedly boost investor confidence in Saudi Arabia's burgeoning tourism sector, paving the way for future projects that contribute to a more diverse and sustainable economy," he remarks.
In summary, RSDC's potential public market offering by 2026 or 2027 signifies an optimistic outlook on Saudi Arabia's bid to establish itself as a top-tier tourist destination. The completion of its first phase is eagerly anticipated by both investors and industry players alike, promising exciting growth opportunities within hospitality-related sectors throughout the region.