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Red Sea Global secures $288m funding for Jumeirah project

Red Sea Global
Red Sea Global signed a joint venture with AREIC to develop Jumeirah The Red Sea project

Red Sea Global (RSG) has secured $288 million in funding as part of a joint venture with Almutlaq Real Estate Investment Co. (AREIC) to develop Jumeirah The Red Sea on the west coast of Saudi Arabia.

Gulf International Bank Saudi Arabia (GIB) provided the green financing, the developer said in a statement.

“Achieving commercial close for our debt financing so swiftly after signing our joint venture with AREIC demonstrates private sector confidence in the long-term success of our destinations and appetite in the kingdom’s Vision 2030,” said John Pagano, group CEO of RSG. 

The joint venture with AREIC to develop the SAR1.6 billion resort was signed in July 2022. The 159-key luxury property is situated on The Red Sea destination’s hub island, Shura. 

Shura Island forms part of the first phase of development and will comprise 11 luxury, premium and lifestyle hotels and resorts, residential units, a championship golf course, 118 berth marina, and a retail, dining, and entertainment offering.

GIB is the fifth Saudi bank to support RSG in the debt capital markets, following Banque Saudi Fransi, Riyad Bank, Saudi British Bank and Saudi National Bank’s involvement with RSG’s green loan, which closed in 2022. 

RSG achieved financial close on the first-ever riyal-denominated green financing with its SAR14.120 billion ($3.76 billion) facility. 

The Red Sea is on track to welcome its first guests in 2023 when the initial hotels open. Upon full completion in 2030, the mega 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 include an international airport, luxury marinas, entertainment, and leisure facilities.