INTERVIEW: Amaala — the ‘audacious’ Red Sea Riviera project

Illustration by Luis Grañena
Short Url
Updated 27 September 2020
Follow

INTERVIEW: Amaala — the ‘audacious’ Red Sea Riviera project

  • CEO Nick Naples talks about the elite sustainable resort on the Saudi Arabia’s western coast

DUBAI: The giga-projects that are a hallmark of Saudi Arabia’s Vision 2030 reform plan for economic diversification are going full-steam ahead, despite the disruption from the COVID-19 pandemic and forecasts from skeptics, and none more so than the plan to build the “Red Sea Riviera” on the Kingdom’s western coast.

“We are on track and broke ground earlier this summer,” Nick Naples, the CEO of Amaala, the company in charge of the ambitious project, told Arab News. The word “amaala” means “hope’ in Arabic, but the thinking behind the master plan represents more than just tentative aspiration.

“It is audacious, yet achievable,” he said, with phase one scheduled to be rolled out by 2024. “I am fortunate enough to be at the helm of an incredible project that will be groundbreaking in the areas of sustainability, wellness and philanthropy. I am working with professionals from around the world and have the privilege of seeing young Saudi talent grow and develop into the country’s leaders of tomorrow.

“However, with the pace of activity right now, there are simply not enough hours in the day for me to take a minute to enjoy and appreciate the great work being done.”

He is well-qualified to oversee the project, with three decades of experience in the luxury hospitality and leisure industry under his belt. 

He has worked for some of the best-known names in these sectors including Ritz-Carlton, Four Seasons and Caesars Entertainment. He has been involved in mega-projects in the US and Macau, and delivered multibillion- dollar resort developments around the world.

Amaala is probably more ambitious than any of them. For one thing it is located in Saudi Arabia, which has only recently begun to market its historical, cultural and natural attractions to an international audience.

Second, it is unfolding at a time when discerning travelers want more than sun, sea and sand from their vacation. They want luxury and comfort on a grand scale, but also distinctive experiences and activities, and they want it all in an environmentally sound context. Amaala is planned as a standard-setter for sustainable tourism.

These challenges were foreseen from the beginning of the Amaala project in 2017, but the final hurdle surfaced earlier this year. The development is taking place in the middle of the biggest health and economic crisis for a century, when governments have been cutting back on spending to deal with the new realities of post-pandemic life.

Naples takes a realistic view. “These are challenging times and, as the world unites to fight the spread of COVID-19, we are seeing a growing impact on economies across the world. At Amaala, we are aware of the current operating environment and remain steadfast in our commitment to deliver a luxury destination that will be a disruptor in the sector.”


BIO

BORN: US.

EDUCATION: Master’s degree, Cornell University, New York.

CAREER

  • Resorts projects executive, Ritz-Carlton, Four Seasons.
  • CEO, Integrated Resorts International, US, China, Vietnam.
  • Hotel projects executive, Caesars Entertainment Corp.
  • COO, Macau Studio City.
  • CEO, Amaala.

In some ways, the timing of the pandemic was fortunate. “As we are in the early stages of development, our plans were not scuttled by the pandemic and we were able to progress as planned, while working remotely,” he said, at the same time allowing that the cancellation of some key events in the international calendar, like Arabian Travel Market, the Future Investment Initiative and the Monaco Yacht Show, affected his ability to market Amaala to potential partners and investors. “We are evolving to meet our needs,” Naples said.

Like the other big initiatives of Vision 2030, Amaala is managed and funded by the Public Investment Fund, the Kingdom’s fast-growing sovereign wealth investor, which has shown no sign of slowing down even during the financial and economic stresses of the pandemic.

The master plan envisages the creation of three “communities” on more than 4,000 square kilometers of land and marine environment on the Red Sea coast, roughly mid-way between the gigantic NEOM development to the north and the port city of Jeddah further south. It is close to the historic site of AlUla, also the center for a major tourism and cultural project.

Amaala’s three interconnected projects offer different visitor experiences.

Triple Bay will be a holistic wellness retreat with state-of-the-art medical facilities, as well as world-class sports infrastructure.

The Coastal Development will create an arts and cultural center, with a museum of contemporary art, a film festival venue, performing arts venues, and a biennale park.

The Island, the third development, will be an exclusive enclave where residents and visitors can relax in intimate resorts with first-class recreational and leisure facilities.

The three developments “will be distinct in purpose as well as design, but will be bound together by an innovative approach with sustainability at its core,” Naples said.

Foster & Partners has been appointed executive architects for the development, while other global design experts, like US design firm HKS and Denniston, led by award-winning Jean-Michel Gathy, are on board for specific facets of the master plan. All have sound sustainability credentials.

“Sustainability has never been undertaken and embraced on a project of this scale before. Existing properties’ sustainability aspirations largely involve playing catch-up to balance offsets but, over time, Amaala will meet these standards from the ground up, creating a coastal oasis that elevates the role of responsible tourism globally,” he added.

Amaala is located within the Mohammed bin Salman Natural Reserve, an area of outstanding natural and historic riches. It is the project’s mission to act as custodians of those assets, Naples said. Only 5 percent of the total area will actually be developed, with the rest earmarked for conservation and preservation.

The development includes plans for world-class yachting facilities as well as other marine leisure activities, but has also made firm commitments on coral reef management and species protection, including enforcing protected areas and combating plastic pollution.

The Amaala Marine Life Institute will have research and development facilities to study ocean conservation initiatives and apply them to the rest of the Kingdom’s coastline and to the world’s seas.

“Design and development will be carried out according to the highest global standards and we will be working with partners to meet the highest levels of sustainability throughout the design, build, and operation phases. Partnerships with international conservation foundations is testament to our steadfast commitment to the preservation of the local biosphere, especially the marine environment.” Naples said.

Who will travel to this elite development, especially in what some luxury experts have called the age of “post-opulence” in the wake of the pandemic?

“The concept of luxury tourism is evolving. Today’s most discerning global citizens are driven to discover personal experiences unlike any other — immersive, authentic, and realized through a journey of self-discovery. Our aim is to bring to life the desires and ambitions of a community obsessed with shaping and living transformative moments that will safeguard the planet’s natural resources,” Naples said.

“Amaala will be a disruptor in its sector and will redefine the ultra-luxury resort experience and the tourism experience in its entirety. It will set the standards for personalized service, with each guest crafting their own journey through the pillars that tie Amaala together.” 

Its own airport — initially open for private jets and charters but ultimately a commercial facility that can also serve other attractions nearby on the Red Sea coast — will bring international visitors direct to the development. Some of the other mega-projects are believed to be considering special visa and administrative arrangements within their boundaries.

Naples is in no doubt about the challenges of tourism in the Kingdom. 

“We need to build a robust tourism infrastructure within a short period of time and present the same level of excellence and expertise that global travelers are used to in key destinations around the world,” he said.

There is a domestic challenge too. “We also need to attract more Saudi nationals to the tourism sector by creating opportunities for growth and development. This will mean attracting the best experts from around the world and having them mentor the next generation of Saudi tourism experts,” he said.

Naples underlined the “audacious” nature of the Amaala project, but is at ease with its long-term viability. 

“We are confident the stunning natural environment, combined with unique culture and innovative experiences, will appeal to our guests. We will awaken the world’s imagination through unrivaled quality, sustainability, and community,” he said.


Saudi Arabia’s oil sector skills to help Kingdom evolve as a green hydrogen hub, experts say

Updated 20 sec ago
Follow

Saudi Arabia’s oil sector skills to help Kingdom evolve as a green hydrogen hub, experts say

  • Saudi Arabia, having set its net-zero target for 2060, has been heavily investing in the renewable energy sector

RIYADH: Saudi Arabia’s long-proven expertise in the oil industry could help the Kingdom emerge as a global leader in green hydrogen production as the world marches toward a sustainable future, experts told Arab News. 

Saudi Arabia, having set its net-zero target for 2060, has been heavily investing in the renewable energy sector, and with the world’s largest green hydrogen plant, located in Neom, set to become fully operational in 2027. 

The plant will rely entirely on solar and wind energy to power a 2.2 gigawatt electrolyzer, designed to produce hydrogen continuously. 

Speaking to Arab News, Paul Sullivan, an energy and environment expert at Johns Hopkins University, said that Saudi Arabia could use its vast experience in project management and execution in the traditional energy sector to become a leader in green hydrogen production. 

“Many skills could be transferred from traditional fuels, such as oil and gas, to green hydrogen. Experience and skills in project development could be transferred,” said Sullivan. 

He added: “The knowledge gained from developing traditional energy projects at Saudi Aramco and its contractors puts Saudi Arabia at an advantage as it advances its hydrogen projects. AI expertise can be used across energy types and uses. AI could help optimize current and future energy systems, regardless of their nature.” 

Samuele Bellani, managing director and partner at Boston Consulting Group, shared similar views, and said that Saudi Arabia has access to advantageous solar and wind renewable energy, which could help the Kingdom emerge as a global powerhouse in green hydrogen production. 

“This strong competitive advantage, together with Saudi Arabia’s commercial and marketing capabilities, and decades of experience in large-scale gas processing, refining, and project execution can position the country as a key producer and exporter of low carbon hydrogen in the future,” said Bellani. 

The BCG official added that the Kingdom’s expertise in managing complex, capital-intensive projects at scale in the traditional fuel sector provides an invaluable foundation for hydrogen development, where similar skills in engineering, logistics, and international energy trading are essential. 

Green hydrogen, created through electrolysis powered by renewable energy, is seen as a critical component in reducing global carbon emissions, because it produces no greenhouse gases in the production process.

In December, speaking to Al-Eqtisadiah on the sidelines of the Absher Conference, Saudi Arabia’s Minister of State for Foreign Affairs and Climate Envoy Adel Al-Jubeir said that the Kingdom is making steady progress in advancing the circular carbon economy and green hydrogen production as part of broader efforts to address climate challenges through technology and investment. 

The minister added that the Kingdom has made tangible progress in deploying new technologies that support more efficient energy use while expanding the production of alternative and renewable energy sources.

Upgrading existing systems

Sullivan said that infrastructure used in the traditional energy sector, such as pipelines, can be repurposed for the renewable industry, with some required changes to ensure safety and affordability. 

“A wide range of legal, administrative, managerial, engineering, supply chain, policy development, governance, finance, safety and risk management, and economic skills could be transferred. Plumbers, electricians, pipefitters, welders, and other skilled craftspeople can be repurposed and used directly,” said Sullivan. 

He added: “Furthermore, the oil and gas industries already produce hydrogen for their own needs. They have experience in developing ports, pipelines, and other logistical systems, as well as international trading and supply chain networks. That experience will not go to waste.” 

Bellani said that Saudi Arabia can adapt existing gas, power, and industrial infrastructure to support blue hydrogen with carbon capture and storage, and green hydrogen powered by renewables. 

The BCG official added that export infrastructure — including ports, storage tanks, and shipping — could be upgraded to handle hydrogen carriers such as ammonia. 

Carbon capture and storage is central to Saudi Arabia’s blue hydrogen strategy.

Samuele Bellani, managing director and partner at Boston Consulting Group

Industrial zones and pipelines can be repurposed or expanded to integrate hydrogen production, conversion, and export at scale provided materialization of demand and ability to secure long term offtake agreements. 

“This adaptive approach maximizes the value of existing investments while minimizing development timelines. The Kingdom’s world-class port facilities and industrial complexes provide a strong foundation that can be enhanced rather than rebuilt, offering significant cost and time advantages over competitors starting from scratch,” he added. 

According to Bellani, carbon capture and storage is central to Saudi Arabia’s blue hydrogen strategy, enabling production from natural gas while significantly reducing lifecycle carbon dioxide emissions. 

“The Kingdom’s large geological storage potential and experience with CO2 injection support the development of high-capture-rate projects at scale. This technology serves as a crucial bridge, allowing Saudi Arabia to leverage its existing natural gas resources while building toward a fully renewable hydrogen economy,” said Bellani. 

He added: “The Kingdom’s geological advantages — including extensive underground formations suitable for CO2 storage — provide a natural competitive edge in blue hydrogen production that few other nations can match.” 

The strategic Vision 2030 agenda

According to Sullivan, Saudi Arabia’s Vision 2030 economic diversification program, as well as the initiatives taken by the Kingdom’s sovereign wealth fund, is playing a crucial role in materializing the nation’s hydrogen goal. 

Sullivan said that Vision 2030 is the umbrella for strategic policies, including building new supply chains and new visions toward trade and commerce, as well as economic, financial, and employment diversification. 

The Public Investment Fund is funding such activities, including the giant Neom and Yanbu green hydrogen projects, as well as the development of green hydrogen hubs.

“PIF green bonds help reduce costs and make financing green hydrogen projects cheaper than they would otherwise be. The Saudi Green Initiative provides direction and policy developments on climate and environmental policies that could help advance green hydrogen in tandem with Vision 2030 and the PIF’s work,” said Sullivan. 

He added: “Without a proper strategic confluence of all three, many of today’s and future green hydrogen projects could face a more difficult future.”

Bellani shared a similar opinion and said that the Vision 2030 program’s strategic framework ensures that hydrogen development receives the highest levels of government support and investment priority. 

The BCG official added that Saudi Arabia can reduce its dependence on oil revenues while developing new industrial capabilities and contributing to global decarbonization efforts by building a valuable hydrogen economy. 

“Vision 2030 promotes economic diversification, industrial localization, and energy transition. All these three objectives align with low carbon hydrogen value proposition,” said Bellani. 

Target countries

According to Sullivan, Europe will be one of the priority markets for Saudi Arabia as it ramps up green hydrogen production. 

“Saudi Arabia’s green hydrogen has better economics than many other countries’, given the costs of electricity production and offtake contracts under concessional regimes, as well as its natural endowments for green energy,” said Sullivan. 

He added: “Even with shipping costs included, Saudi green hydrogen could be competitive in Europe in many circumstances.” 

Bellani echoed similar sentiments and said that the demand for Saudi Arabia’s green hydrogen will be driven by demand for both blue and green hydrogen to meet decarbonization targets and energy security needs. 

East Asian countries such as Japan and South Korea are also key markets due to their limited domestic energy resources and strong interest in hydrogen and ammonia imports. 

The BCG official further said that additional demand may emerge from other Asian and emerging economies seeking affordable, low-carbon fuels in the future. 

Potential challenges and combat measures

Speaking to Arab News, Safak Yucel, associate director of business of sustainability initiative at McDonough School of Business Georgetown University Dubai, said finding buyers could be one of the obstacles Saudi Arabia faces in its hydrogen journey. 

“The biggest challenge is driving the cost down sufficiently so that there would be a meaningful scale of buyers. This would require significant investments not only in the infrastructure but also research and development,” said Yucel. 

Bellani said that the challenges Saudi Arabia could face include ensuring global demand certainty, securing long-term offtake contracts, and remaining cost-competitive as international hydrogen markets evolve. 

The BCG official added that scaling CCS for blue hydrogen and renewable capacity, water supply, and electrolysis for green hydrogen requires significant coordination and capital.

Regulatory alignment, certification complexity, and infrastructure build-out timelines also pose execution risks. 

“These challenges highlight the complexity of transforming an entire energy system while building new international markets simultaneously. However, Saudi Arabia’s experience managing large-scale energy projects and its substantial financial resources position the Kingdom well to address these implementation hurdles systematically,” added Bellani. 

Yucel said that Saudi Arabia could explore international collaboration, to evolve as a market leader in the hydrogen energy ecosystem. 

“Many companies are interested in investing in green hydrogen and several research groups across the globe are working on further advancing the technology. Such collaborative efforts would be vital in driving costs down,” said Yucel. 

Bellani elaborated and said that there are strong opportunities for collaboration across the value chain, including joint ventures for blue and green hydrogen projects, offtake agreements, and infrastructure development. 

According to him, international energy companies, technology providers, and engineering firms can contribute expertise in CCS, electrolysis, ammonia, and logistics, while partnerships with research institutions can accelerate innovation in hydrogen technologies, cost reduction, and sustainability standards. 

“Saudi Arabia’s transition from oil giant to hydrogen superpower represents one of the most significant energy sector transformations of our time. By systematically addressing each aspect of hydrogen economy development — from leveraging existing expertise to building new international partnerships— the Kingdom is positioning itself at the forefront of the global energy transition,” said Bellani.