Saudi Arabia’s Al Balad Development Company, a subsidiary of the Public Investment Fund (PIF), has unveiled an ambitious $3.6 billion investment aimed at bolstering the Kingdom’s hospitality sector and revitalising Historic Jeddah, or Al Balad.
The announcement was made during the TOURISE global summit in Riyadh in November.
The investment will focus on developing over 3,300 hotel units ranging from mid-scale to luxury, utilising a variety of investment and financing models. These models include public-private partnerships and specialised investment funds. This approach aligns with the Kingdom’s goals to foster an environment conducive to foreign investment and innovation in the hospitality industry. The investment spans from 2025 to 2038.
Al Balad Development was first announced in 2023. The new strategy is aligned with Saudi Arabia’s ongoing efforts to make the kingdom a world-renowned tourist destination.
Jamil Hassan Ghaznawi, Chief Executive Officer of Al Balad Development Company, said: “This announcement represents a qualitative step in the journey to develop Historic Jeddah, combining leadership in development with empowering the private sector to create sustainable investment opportunities in a unique heritage environment. Through it, we aim to develop a hospitality experience that reflects the authenticity of the place and meets visitors’ aspirations.”
