Saudi Arabia’s Tourism Development Fund (TDF) has signed a tripartite agreement with London-based developer Ennismore and the kingdom’s leading asset manager Al Rajhi Capital to establish a hospitality investment fund with a capital of $400 million (SR1.5 billion) that will advance lifestyle hotels.
The move aims to help in enhancing promising sector-leading opportunities in various tourist destinations within the kingdom, as per the statement.
Under this latest agreement, the companies will identify locations and provide financing options for projects throughout the kingdom.
TDF said that it will invest in the newly established investment fund, while Ennismore will lead on developing and operating these projects under the umbrella of its lifestyle brands. Al Rajhi Capital will manage the investment fund and attract investments.
“This partnership shows our commitment and dedication to our initial MoUs and marks an important milestone towards fulfilling the targets of the National Tourism Strategy to consolidate the Kingdom’s position as a global tourist destination by leveraging the promising opportunities the Saudi tourism sector presents. Joining forces with both Ennismore and Al Rajhi Capital is yet another positive step towards realizing our ambitions to advance the tourism sector. We seek to continuously deliver new and diversified options, enabling the private sector to invest in the growing hospitality sector, to enrich visitors’ experiences while achieving sustainable tourism and economic development.”
Ennismore’s Co-CEO Mr. Gaurav Bhushan noted that, “Our partnership with TDF and Al Rajhi is a significant part of our growth strategy for the region. Ennismore is pleased to further cement its commitment to the growing Saudi hospitality sector through employing, training, and advancing national competencies, as well as providing tourism services that would build closer connections with international and local tourists.”
“For Al Rajhi, this agreement reflects the importance of partnership between the private and public sector and also opens up lucrative investment opportunities where capitals can be invested in national programs geared towards the tourism industry,” commented Mr. Waleed AlRashed AlHumaid, CEO of Al Rajhi Capital.
This partnership deal complements the initial endeavor in October last year when TDF and Ennismore signed the MoU to launch an investment fund focused on developing lifestyle hotels in the kingdom at the 5th edition of the Future Investment Initiative (FII).