PIF unit commits millions to back Aseer province growth

Ardara, a wholly owned subsidiary of the Public Investment Fund (PIF), is making multi-million-dollar investment in Aseer province in the south of the kingdom to support urban development in line with Vision 2030.

Work was launched this week on AlWadi – meaning “the valley”– after it was first announced in October 2023, the state-run Saudi Press Agency reported, quoting Aseer governor and Ardara chairman Prince Turki bin Talal bin Abdulaziz.

The first phase of AlWadi includes a 180-room 5-star hotel, a 245-room 4-star hotel, 82 branded apartments and villas, as well as 4,500sq m of retail space.

AlWadi covers 2.5 million sq m, with more than 30 percent of the project developed with green open spaces, along with 16km of waterfront and 17km of sports trails.

Separately, Ardara signed a memorandum of understanding with Saudi-listed Sumou Holding to develop mixed-use urban communities in the upcoming phases of AlWadi, with investments topping SAR1 billion ($267 million).

The PIF subsidiary also signed an agreement with Sedco Capital, an asset management company, to launch a SAR1 billion fund for developing an urban project in Abha.

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The project is planned to encompass residential, hospitality and entertainment components to support economic and tourism development in Aseer Province.

“The Aseer region is a rising star in Saudi Arabia,” Vijay Valecha, chief investment officer at Century Financial, told AGBI.

It is “positioned to flourish economically and become a popular tourist destination with the backing of the Saudi government and private investors”, he said.

Ardara aims to contribute more than SAR19 billion to the non-oil GDP by 2030.