Saudi Arabia focuses on $2.7 Billion in contract for Red Sea Project
The company behind a major tourism destination on Saudi Arabia’s Red Sea coast hopes to award up to 10 billion riyals in construction contracts by the end of 2020.
John Pagano, chief executive of The Red Sea Development Co. gave an interview to Bloomberg TV. “Between now and the end of the year, we hope to award another two to three billion riyals in contracts, and onto next year, it will probably be six or seven billion more as we move further into the construction of the destination,” he said.
Pagano said the company plans to raise over 10 billion riyals in commercial debt to help fund it. “We’re currently in the market, principally with the domestic banks who have the appetite and interest to support this project,” he added.
The Red Sea project, which was first announced in 2017, covers 28,000 square kilometers and will target regional and international luxury travellers. It will be a part of Saudi Arabia’s plans to transform the economy and cut its reliance on oil.
The company is planning to complete a deal by the end of the year, people with knowledge of the matter said at the time.
Maritime Business World