Red Sea Global awards contracts worth $2.4bn to Saudi Airlines Catering

Saudi Airlines Catering Company (SACC) has been awarded two contracts totaling $2.4bn by Red Sea Global (RSG). Red Sea Global is the multi-project developer behind Saudi Arabia’s ambitious regenerative tourism destinations – The Red Sea and Amaala.

The agreements were signed in Riyadh in the presence of John Pagano, group CEO of RSG, and Wajdy M Al-Ghabban, CEO of SACC.

The first contract is for SACC to design, build and operate a Central Production Unit (CPU) for catering services for employee meals.

“We are dedicated to ensuring our partners and employees who live and work at The Red Sea receive seamless services. SACC, with over 40 years of experience in catering and amenities, coupled with a deep understanding of the Saudi market, will provide the high standards we expect,” said John Pagano, group CEO of Red Sea Global.

The second contract is for a central laundry to provide laundry services including employee uniforms and hotel linen in addition to other facilities within the Red Sea destination, the company said in a separate statement.

“It is equally important to us that the communities around our developments have the opportunity to benefit. SACC shares these values and together we will develop local supply chains by looking to work with neighboring businesses, farmers and artisanal producers wherever possible,” he added.

The two contracts, which are subject to RSG board’s final sign-off, are part of the strategic plan implemented by SACC to attract investment opportunities in new industrial and tourist cities, the statements said.

Red Sea Global driving Saudi Arabia’s Vision 2030

As a cornerstone of Saudi Arabia’s Vision 2030, RSG is a critical driver in diversifying the economy and creating opportunities for Saudi nationals to break into the tourism sector. The collaboration with SACC is expected to create more than 500 new industry roles for talent within the kingdom.

Mohammed Al-Sarhan, chairman of Saudi Airlines Catering Company, expressed his pride at winning this significant contract for the company. He emphasised that these two contracts mark the beginning of a strong strategic partnership with Red Sea Global, aimed at enhancing joint efforts to serve the tourism industry in the kingdom and solidify its position on the global tourism map.

Wajdy M Al-Ghabban, CEO of SACC, said, “With RSG determined to provide great working and living experiences for employees, SACC is well equipped to support the company with delivering on these ambitions. We also echo the determination to bring local businesses on board whenever we can and look forward to being part of the growing Red Sea destination community.”

The partnership comes as RSG prepares to welcome the first guests to The Red Sea later this year. Upon full completion in 2030, the destination will have 50 hotels, with up to 8,000 hotel rooms, as well as residential properties and villas.

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