Red Sea Global closes $522m financing deal with Riyad Bank for luxury hotel 

RSG announced that financial closure with Riyad Bank supports its ongoing joint venture with Kingdom Holding Co., a Saudi-based investment firm focused on enhancing the hotel's development. Supplied
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Updated 11 February 2024
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Red Sea Global closes $522m financing deal with Riyad Bank for luxury hotel 

RIYADH: Red Sea Global has secured a SR2 billion ($522 million) financing deal to advance the development of the Four Seasons Hotel on Shura Island in Saudi Arabia. 

RSG announced that financial closure with Riyad Bank supports its ongoing joint venture with Kingdom Holding Co., a Saudi-based investment firm focused on enhancing the hotel's development. 

The luxury property, featuring 159 hotel units, is expected to open its doors in early 2025. 

John Pagano, CEO of RSG, said: “The Kingdom’s tourism potential is truly limitless and with our first two hotels now open, we are at the vanguard of putting Saudi Arabia on the global tourism map.”  

He added: “This deal signifies the confidence of the private sector in the country, its people and in Red Sea Global. Riyad Bank has been with us since our first debt financing deal in 2021 and we’re honored to have them partner with us once again.”  

This effort is an integral part of the initial phase of the Red Sea project, aiming to introduce a diverse range of luxury resorts, residential units, and a championship golf course. Additionally, it will include a marina for 118 yachts and various retail, dining, and entertainment options. 

“Red Sea Global has an incredible responsibility to be an enabler of the Kingdom’s Vision 2030, and added to this, it set its own incomparable ambitions to deliver development in a way that is responsible and regenerative,” Nadir Al-Koraya, CEO of Riyad Bank, said.  

“We believed in the vision its leadership presented back then at our first encounter and last year, when the Red Sea welcomed its first guests, our faith was shown to be well-founded. We’re privileged to once again have the opportunity to support one of the world’s most ambitious developers,” he added.  

The destination began receiving its initial visitors in 2023, and the Red Sea International Airport already operates regular domestic flights.  

Slated for full completion by 2030, Shura Islands is set to welcome its first guests in 2025. It is expected to feature 50 resorts offering up to 8,000 hotel rooms, over 1,000 residential units across 22 islands, and six inland sites. 

Formalized in October 2023, RSG’s joint venture with Kingdom Holding Co. brings together the two parties at a 50/50 partnership and an SR2 billion investment. 


Saudization rates in marketing, sales professions announced

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Saudization rates in marketing, sales professions announced

RIYADH: Saudi Arabia’s Ministry of Human Resources and Social Development has announced the issuance of two decisions to increase Saudization rates in marketing and sales professions.

This comes as part of the ministry’s efforts to enhance the participation of national talent in the labor market, raise the level of Saudization in specialized professions, and provide stimulating and productive job opportunities for Saudi citizens across the Kingdom.

The first decision stipulates raising the Saudization rate to 60 percent in marketing professions in the private sector, effective Jan. 19, 2026. It applies to establishments with three or more employees in marketing professions, with a minimum wage of SR5,500 ($1,466). 

The targeted professions include: marketing manager, advertising agent, and advertising manager, as well as graphic designer, advertising designer, and public relations specialist. They also include advertising specialist and marketing specialist, as well as public relations manager and photographer.

The decision will be implemented three months after the announcement date to allow establishments sufficient time to prepare and implement it.

The second decision stipulates raising the Saudization rate to 60 percent in sales positions within the private sector, effective Jan. 19, 2026. This applies to establishments with three or more employees in sales roles, including: sales manager, retail sales representative, and wholesale sales representative as well as sales representative, IT and communications equipment sales specialist, and sales specialist. They also include a commercial specialist and a goods broker.

The decision will take effect three months after the announcement date to allow targeted establishments time to fulfill the requirements and achieve the Saudization target.

The entity clarified that private sector establishments will benefit from a package of incentives offered by the Ministry of Human Resources and Social Development, including support for recruitment, training and development, and employment, as well as job stability and priority access to Saudization support programs and programs of the Human Resources Development Fund.

The ministry also confirmed that its decision to raise Saudization rates in marketing and sales professions was based on analytical studies of labor market needs, in line with the number of job seekers in related specializations and the current and future requirements of the sales and marketing sectors.

It noted that implementing these decisions would enhance the attractiveness of the labor market, contribute to increasing quality job opportunities, and promote job stability for Saudi nationals.

The ministry further published the procedural guide for the two decisions on its website, which includes details of the targeted professions, the mechanisms for calculating Saudization rates, and the required compliance steps.

It urged all covered establishments to comply with the implementation to avoid penalties and to take advantage of the grace period provided for preparation and fulfillment of the requirements.