By Innovation-sa on May 30, 2018 in News
The Ministry of Commerce and Investment registered Saudi Arabia’s Red Sea project as a standalone closed joint-stock company, The Red Sea Development Company (TRSDC), solely owned by the country’s sovereign wealth fund, the Public Investment Fund (PIF). The PIF, headed by Crown Prince Muhammed bin Salman, will inject initial investments into the project and later start partnerships with international companies.
The ministry appointed John Pagano, the former managing director of development for the UK’s Canary Wharf Group as the company’s chief executive. The pioneering project which is part of the Crown Prince’s blueprint to prepare the biggest Arab economy for the post-oil era will cover 50 islands and over 34,000 square kilometers of the area to attract travelers looking for luxury, tranquillity, adventure and beautiful landscapes.
The TRSDC will now create a Special Economic Zone, with its own regulatory framework that is independent of the base economy, with a special emphasis on environmental sustainability, offering visas on entry, relaxed social norms, and improved business regulations. Plans are underway to simplify entry procedures and offer visas on arrival for overseas visitors to attract huge volumes of tourists from around the globe.
The project located along the western coast of Saudi Arabia, between the cities of Al-Wajh and Umluj, some 500km north of Jeddah, will serve as a unique tourist destination throughout the year. The first phase of the venture will focus on hotels and residential units, along with a new coastal town, an airport, and a marina, and is due for completion by the end of 2022.
The project is expected to generate more than 35,000 jobs and contribute as much as SR15 billion to the local economy by attracting large volumes of global and domestic investments. TRSDC listing comes soon after the ministry has officially incorporated Qiddiya Investment Company (QIC), the entertainment, sport and cultural destination being built on the outskirts of Riyadh.