RIYADH: Saudi Arabia’s Al Balad Development Co., a unit of the Public Investment Fund, has announced a $3.6 billion (SR13.5 billion) investment portfolio to transform the hospitality landscape in Jeddah’s historic district.
The company said the initiative will see the rehabilitation and development of heritage hospitality assets across Historic Jeddah — known as Al Balad — with the goal of creating more than 3,300 hotel units, according to an announcement on X.
The initiative forms part of Saudi Arabia’s broader economic diversification strategy under Vision 2030, which aims to expand non-oil sectors such as tourism, culture, and hospitality while enhancing the Kingdom’s global appeal as a heritage and travel destination.
In a post on X, the company stated: “Al Balad Development Co. launches a $3.6 billion investment portfolio to develop hospitality assets in Historic Jeddah, including the rehabilitation and development of a group of hospitality properties in the district.”
The initiative includes plans to build hotel units across multiple categories — comprising 325 luxury rooms, 758 upper-upscale rooms, 664 upscale rooms, 1,246 mid-scale rooms, and 422 hotel apartments.
Implementation of these projects will begin in 2025 and continue through 2038.
Established in 2023, Al Balad Development Co. serves as the heritage-focused master developer and asset manager for the Jeddah Historical District.
The company said the projects will be implemented through various funding models, including investment funds, public-private partnerships, and build-operate-transfer contracts.
