Soudah Mountains in southern Saudi Arabia
Source: Soudah Development Co.
Source: Soudah Development Co.
Saudi Arabia’s sovereign wealth fund will invest nearly $ 3 billion in a tourism project in a mountainous region near the kingdom’s border with Yemen.
THE The Public Investment Fund will provide 11 billion rials to Soudah Development Co., which will build 2,700 hotel rooms and 1,300 homes in an area that includes Al-Soudah, the highest peak in Saudi Arabia, according to Husameddin AlMadani, director Soudah executive.
The kingdom was practically closed to foreign tourists for decades, while citizens preferred to go on vacation abroad. That changed with the rise of the de facto ruler, Crown Prince Mohammed Bin Salman, who is trying to open the country and diversify the oil economy.
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“Many of us who live in Saudi Arabia did not know that this destination existed,” said AlMadani in an interview. “I lived in Riyadh for thirty years before I knew I could take an hour-long flight and see this beautiful place.”
Husameddin AlMadani, CEO of Soudah Development Co., speaks on “Bloomberg Daybreak: Middle East.”
Encouraging Saudis to spend more on the domestic market through the development of entertainment and tourism websites is an important part of Prince Mohammed’s plans. The government has also introduced tourist visas to facilitate the entry of foreigners into the country and to allow unmarried couples to stay together in hotels. This ended the ban on female drivers and loosened strict dress codes for women.
Soudah is part of a growing list of tourism related ventures in the kingdom. The PIF has pledged to spend $ 40 billion annually in the country in the coming years. The projects he is financing include a luxury resort on the Red Sea, a theme park and entertainment complex outside the capital, Riyadh, and a new city in the northwest called Neom, which will focus on high-tech industries.
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AlMadani denied that the project was hampered by its proximity to Yemen, which is mired in civil war for about six years. Yemen’s Houthi rebels, who are fighting a Saudi-backed coalition, fired missiles at Soudah’s main airport this month and set a plane on fire.
“Government officials and the coalition are doing their best to ensure the security of the airport and nearby destinations,” said AlMadani. “I live in Al-Soudah, my wife and children live in Al-Soudah. Our employees too. It is us to feel very safe.”
Foreigners can buy
The coronavirus pandemic has forced Saudi Arabia to close its borders for much of last year. Some travelers are now allowed to enter the country, but citizens are still prohibited from making all trips abroad, except essentials, until at least May. This spurred the growth of domestic tourism.
Soudah Mountains in Saudi Arabia
“The pandemic has tripled the number of people who wanted to go out and see nature,” said AlMadani. “This demand has pushed us to accelerate development.”
Soudah is finalizing rules that will allow foreigners to buy property in the venture, said AlMadani. The company plans to attract 2 million visitors a year by 2030 and the first phase can be completed by 2023, he said in a separate interview with Bloomberg TV.
– With the help of Dana Khraiche, Yousef Gamal El-Din, Manus Cranny and Desley Humphrey
(Adds additional quote in the final paragraph.)