The Amaala ultra-luxury project in Saudi Arabia is set to obtain green loans amounting to 10 billion riyals ($2.7 billion) next year, according to Bloomberg.
The Director of Finance and Investment at the Red Sea Development Company, Jay Rosen, said that the Amaala project, located on the northwest coast of the Kingdom of Saudi Arabia, will not be put on the market until next year.
Rosen indicated that the numbers have not been finalized yet, and it is likely that the volume of loans ranges between 5 to 10 billion riyals.
In September 2018, the Public Investment Fund in Saudi Arabia launched the Amaala project as a luxury tourist destination on the Red Sea coast. The Fund will undertake the initial financing and development of the project.
The project is expected to become a distinguished tourist destination within the Prince Mohammed bin Salman Nature Reserve in the northwest of the Kingdom, while it is expected to complete it completely by 2028.
Openness to tourism is one of the ways in which Saudi Arabia intends to diversify its economy away from oil.
Its other ambitious projects include a recreation center near the capital, and a new city in the northwest called Neom, which is expected to cost $500 billion to build.
The area of the luxury tourism project is equivalent to that of Belgium, and includes a new international airport.
Upon completion, the project will target one million visitors annually, divided equally between local and foreign tourists.
The capacity at the Red Sea International Airport will reach 300,000 passengers at the end of the first phase.
By 2028, the project aims to establish 2,500 luxurious hotel rooms and suites, 700 villas and apartments, in addition to 200 high-end stores. The project will also establish a group of distinguished exhibitions, galleries, craft workshops, and bespoke retail outlets, as well as a group of distinguished international and local restaurants and cafes.
The prices of hotels in the Red Sea project will be varied and start from the 4-star category to the 6-star category, and the largest percentage is in the 5-star category.