On October 1, 2017, the Saudi government announced Virgin Airlines founder Richard Branson will invest in The Red Sea Project which will turn 50 Saudi Arabian islands into luxury tourism destinations.

As the first international investor into the project, Branson’s involvement has the information ministry excited showing “a clear sign that Saudi Arabia is opening its doors to international tourism.” While inspecting the future development, Branson visited the nearby tombs at Mada’in Saleh — a UNESCO World Heritage site.
“This is an incredibly exciting time in the country’s history and I’ve always felt that there’s nothing like getting a firsthand impression,” Branson said in a statement released by the information ministry.

At a glance:

• Richard Branson will invest in Saudi Arabia’s new ‘The Red Sea’ Project
• The Saudi government says his involvement shows “a clear sign that Saudi Arabia is opening its doors to international tourism”
• It will turn 50 Saudi Arabian islands into luxury tourism destinations
• ‘The Red Sea’ Project is part of the Kingdom’s 2030 Vision to diversify the economy away from oil and into other sectors such as tourism
• ‘The Red Sea’ Project will promote cultural conservation and economic stimulation
• The initial ground-breaking is expected in Q3 2019
• Completion of phase one is anticipated by Q4 2022

Branson’s is the first investment following His Royal Highness the Crown Prince’s announcement on 31 July 2017 of the launch this ‘The Red Sea’ Project as an international tourist destination as part of the Kingdom’s 2030 Vision. 

With tourism representing the second most important sector in the Kingdom, The Red Sea will diversify Saudi Arabia’s leisure industry to create a year-round hospitality sector for local, regional and global visitors, while promoting cultural conservation and economic stimulation. The Red Sea is conceived as a blissful coastal island retreat set against a backdrop of the ancient ruins, renowned for its beauty and historical significance. 

The 34,000 square kilometre destination will offer visitors the opportunity to experience the hidden treasures of the Kingdom between the cities of Umluj and Al Wajh, across a lagoon of 50 untouched natural islands including stunning coastline, dormant volcanos in Harrat Al Rahat, a nature reserve, the nearby ancient ruins at Mada’in Saleh and a diversity of flora and fauna plus unparalleled scuba diving in the stunning coral reefs.

The Red Sea will showcase a healthy, engaged and vibrant society, setting new standards for sustainable development and environmental protection, central to the project. The number of visitors annually will be capped, and the heritage sites in the region will be scientifically restored to welcome guests.

The Red Sea will be developed with seed capital from the Public Investment Fund, which is headed by Prince Mohammed, while partnerships with top-tier international companies will ensure new direct investment into the Kingdom. Special laws and regulatory framework for the newly mapped semi-autonomous area will meet international standards, including no visa requirements for most nationalities, and will be developed in partnership with the world’s leading hospitality firms.

The initial ground-breaking is expected in Q3 2019, while, completion of phase one anticipated by Q4 2022, including hotels and luxury residential units, as well as all logistical infrastructure – including air, land and sea transport hubs. The Red Sea project is expected to generate 35,000 jobs, according to the Saudi government.

Sources: Public Investment Fund of Saudi Arabia, Arab News, The Independent

See also:

JLL names Riyadh and Jeddah as Emerging Hotspots

Mecca property prices surge

Guidelines for Greening Saudi Arabia