Saudi Arabia’s sovereign wealth fund-Saudi Arabia’s Public Investment Fund (PIF) is launching a new investment plan that will invest US$3 billion to develop tourism and infrastructure projects in the mountains of the Asir region.

Saudi Crown Prince and Chairman Mohammed bin Salman bin Abdul Aziz Al Saud stated in a statement announcing the project that Soudah Development Company (SDC) will combine Soudah and Regina. Rijal Alma'a has been developed into a tourist destination for residents and tourists, with the goal of contributing approximately US$8 billion to Saudi Arabia’s GDP by 2030.

The planned development project includes 2,700 hotel rooms, 1,300 residential units and 30 commercial and entertainment attractions. SDC will provide various services in the hotel, residential, commercial and entertainment sectors. The goal of the joint venture is to attract more than 2 million tourists each year and create 8,000 direct and indirect permanent jobs by 2030.

Saudi Arabia’s public investment fund is an important part of the Kingdom’s "Vision 2030" initiative, which aims to diversify the economy, cultivate local industries, create jobs and reduce dependence on oil revenues.

A five-year strategy for PIF

In January, the fund launched a five-year strategy to double its assets to US$1.07 trillion, and plans to invest at least US$40 billion in the domestic economy every year by 2025 and create 1.8 million jobs. . It will contribute 320 billion U.S. dollars to Saudi Arabia's non-oil economy. The fund’s goal is to increase its assets under management to more than US$2 trillion by 2030.

"Our investment in the Asir region reflects our confidence in the identity of the region, which is a rich blend of identity, heritage and experience," said Yasser Osman Rumayyan, president of the fund. "SDC will provide another excellent destination within Saudi Arabia's diverse and growing experience portfolio, which will attract the imagination of a wide range of investors and travelers."

The establishment of a tourism sector is a strategic priority for the Kingdom of Saudi Arabia. The "Vision for 2030" aims to increase the contribution of the tourism industry from the current 3% to more than 10% of GDP by 2030.

The foundation stated: "SDC aims to develop a roadmap to transform the vast public areas of the area into a diverse landscape, organically and respectfully integrate the year-long adventure and cultural tourism, while emphasizing the unique culture of the area. Geography and verdant natural environment."

"Protecting the environmental integrity of the destination will be a top priority, and development will follow a strict regulatory framework and urban planning guidelines."

The new Asir joint venture is one of the other important tourism projects that Saudi Arabia has undertaken, such as the Red Sea development. The project covers an area of 28,000 square kilometers and includes an archipelago composed of more than 90 islands. The first phase will be completed in 2023, and the entire project will be delivered in 2030.

The Kingdom's economic diversification also includes the expansion of recreational facilities in different locations across the country to promote leisure tourism. In 2017, PIF established the Saudi Entertainment Ventures Company (Saudi Entertainment Ventures Company, Seven for short) to invest in the construction of 20 entertainment destinations, 50 cinemas and two large theme parks in prime locations across Saudi Arabia.

The fund has also invested in a number of large projects, including Qiddiya Entertainment City, featuring Six Flags theme parks, and a large new tourist resort along the Red Sea.Editor/Huang Lijun