#SaudiArabia Seeks Private Money to Transform Red Sea Beaches - Bloomberg

Saudi Arabia Seeks Private Money to Transform Red Sea Beaches - Bloomberg:

Saudi Arabia is seeking private sector investment to turn an archipelago, desert and mountains -- an area about the size of Belgium -- on its Red Sea coast into a global tourism destination.

The oil-rich kingdom’s sovereign wealth fund has committed financing for the project’s first phase, while the Red Sea Development Co. is in talks with banks to raise debt, according to the head of the firm managing the process. The project will cover 90 islands and 28,000 square kilometers (10,810 square miles), according to the company website.

“The funding is backed by the Public Investment Fund -- they’re funding the equity and we will source senior debt,” John Pagano, chief executive officer of Red Sea Development, said in an interview in Riyadh. “While there’s no absolute need for capital, bringing in private sector investors is seen as a good thing. We are actively engaged in discussions with numerous investors.”