World’s Largest Ecotourism Project Gets US$3.76bn, First Phase Open Next Year

• Sommana Yan
• 4 May 2021
• Construction Focus
• 3243 Views

The Red Sea Development Company (TRSDC), the developer behind the world’s most ambitious regenerative tourism project on the Red Sea has closed a US$3.76 billion term loan with four Saudi banks. Meanwhile, the resort is expected to welcome tourists for the first time in 2022.

According to the firm’s press release on 27 April, Banque Saudi Fransi, Riyad Bank, Saudi British Bank and Saudi National Bank acted as Mandated Lead Arrangers, while HSBC served as Green Loan Coordinator on the transaction.

Green Financing accreditation was awarded due to TRSDC’s market-leading approach to social and environmental sustainability and the Red Sea Project’s international recognition as a green project.

TRSDC CEO John Pagano told the press that the scale of this project is unmatched anywhere in the world.

“By applying a unique approach to design, utilising more sustainable methods of construction and using groundbreaking technology, we are not only reducing our impact on the environment but helping to deliver on our commitment to achieve a 30% net conservation benefit by 2040,” said Pagano.

“It is this pioneering approach that has helped us secure the first-ever Riyal-denominated Green Finance credit facility,” he added.

According to Pagano, the firm aims to lead the international luxury tourism industry’s transformation into a more sustainable model.

After first being announced in 2017, the Red Sea Project has already passed significant milestones and work is on track to welcome the first guests by the end of 2022, when the international airport and the first hotels will open. Phase one, which includes 16 hotels in total, will be complete in 2023.

Upon full completion in 2030, the Red Sea Project will comprise 50 resorts, offering up to 8,000 hotel rooms and more than 1,000 residential properties across 22 islands and six inland sites. The destination will also include luxury marinas, golf courses, entertainment and leisure facilities.