Saudi wealth fund commits $3bn to build mega mountain resort project, Soudah

Saudi Arabia’s sovereign wealth fund will invest almost $3bn on a tourism project in a mountainous region near the kingdom’s border with Yemen.

The Public Investment Fund will provide SAR11bn to Soudah Development, which will build 2,700 hotel rooms and 1,300 homes in an area that includes Soudah, the tallest peak in Saudi Arabia, according to Husameddin AlMadani, Soudah’s chief executive officer.

SDC to collaborate with the private sector to enhance tourism infrastructure with 2,700 hotel rooms, 1,300 residential units, and 30 unique commercial and entertainment attractions by 2030.#SoudahDevco#SPAGOV pic.twitter.com/fsrJfFQGHw

— SPAENG (@Spa_Eng) February 24, 2021

The kingdom has been largely shut off to foreign tourists for decades, while citizens preferred to go on holiday abroad. That’s changed with the rise of Crown Prince Mohammed Bin Salman, who’s trying to open up the country and diversify the economy from oil.

“Many of us living in Saudi Arabia didn’t know this destination existed,” AlMadani said in an interview. “I lived in Riyadh for thirty years before I knew that I could take an hour flight and see this beautiful place.”

Encouraging Saudis to spend more domestically by developing entertainment and tourism sites is a key part of Prince Mohammed’s plans. The kingdom has also introduced tourist visas to make it easier for foreigners to enter the country and allowed unmarried couples to stay together in hotels. It ended a ban on female drivers and loosened strict dress codes for women.

Soudah is one of a growing list of tourism-related developments in the kingdom. The PIF has committed to spending $40bn annually in the country for the next few years. Projects it’s funding include a luxury resort on the Red Sea, a theme park and entertainment complex outside the capital of Riyadh, and a new city in the north-west called NEOM that will focus on high-tech industries.

AlMadani denied the project would be hindered by its proximity to Yemen, which has been mired in civil war for around six years. Yemen’s Houthi rebels, who are fighting against a Saudi-backed coalition, fired missiles on Soudah’s main airport this month and set a plane on fire.

“Government officials and the coalition are doing their best to ensure the safety of the airport and the nearby destinations,” said AlMadani. “I live in Soudah, my wife and my kids live in Soudah. So do our employees. And we feel very safe.”

Foreigners can buy

The coronavirus pandemic forced Saudi Arabia to close its borders for much of last year. Some travellers are now allowed into the country but citizens are still barred from all but essential trips abroad until at least May. That’s encouraged the growth of domestic tourism.

“The pandemic resulted in a tripling of the number of people wanting to get out and see nature,” said AlMadani. “That demand has put pressure on us to accelerate the development.”

His company is finalising rules that will allow foreigners to buy property in the development, he said.