A subsidiary of the Public Investment Fund (PIF) in Saudi Arabia has signed new contracts worth over SAR300 million (roughly $79.9 million), indicating a promising future for the country’s hospitality sector. The agreements were made during Rua Al Madinah Holding’s participation in the second edition of the PIF Private Sector Forum. According to the Saudi Press Agency (SPA), the deals were established with global design and engineering consulting firms, with the purpose of overseeing and providing expertise for several hotel projects.
Read more: Saudi Arabia’s PIF attracted over $25 billion worth of investments in three years
The objective of these contracts is to strengthen partnerships between the PIF’s affiliated companies and the private sector, with the ultimate goal of fostering economic growth within the Kingdom. Additionally, these endeavors aim to elevate Madinah’s status as a prestigious destination, characterized by modern architecture, a high quality of life, and a rich cultural experience.
12 hotel brands in the fourth urban settlement
The first contract, concluded with the U.S.-based technical professional services firm Jacobs Solutions, involves the provision of design services for 12 hotel brands within the fourth urban settlement of the Rua Al Madinah giga-project. The contract also includes the allocation of ample space for restaurants and cafes, managed by various international operating companies.
25 percent completion of infrastructure work
The second contract entrusts KEO International Consultants with supervising the implementation of Rua Al Madinah’s fifth urban complex. The objective is to ensure that the project adheres to the highest international standards and specifications. Ahmed Al-Juhani, CEO of the company, stated that 25 percent of the infrastructure work for the project has already been completed. Al-Juhani further highlighted the firm’s commitment to engaging pioneers and experts in the real estate field across all sectors, in order to deliver a unique experience for visitors and guests.
$37.3 million contribution to GDP
The Rua Al Madinah project, launched by Crown Prince Mohammed bin Salman in August 2022, is projected to contribute SAR140 million ($37.3 million) to the Kingdom’s gross domestic product upon its completion. Spanning 1.5 million square meters, with 63 percent dedicated to open and green spaces, the project will encompass 47,000 hotel rooms.
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