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October 26, 2020updated 27 Oct 2020 5:12am

Saudi Arabia and banks sign deal on $43bn worth tourism projects

Saudi Arabia and banks sign deal on $43bn worth tourism projects

Saudi Arabia’s hospitality firms are expected to benefit from huge investments into hotel rooms, infrastructure as well as construction.

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Late last month, Saudi Arabia’s Tourism Development Fund, Riyadh Bank and Banque Sandi Fransi have signed a deal to finance about SAR160bn ($43bn) worth of tourism projects within the country.

The fund has been started with an initial investment of $4bn. It is part of plans to diversify the country’s economy that align with Saudi Crown Prince and Chairman of the Council of Economic and Development Affairs Mohammad bin Salman’s ambitious ‘Vision 2030’.

It is intended to generate investment across tourism in collaboration with private and investment banks.

Hospitality companies are ‘riding high on the tourism fund pack’ already, said news agency Arabian Industry citing a report from JLL published last week.

JLL stated: “While the hospitality industry remains challenged in the short term, in the long-term, however, and in light of the Tourism Development Fund agreement, construction activity in the sector will speed up as the kingdom strives to boost infrastructure, and increase the number of hotel rooms in line with Vision 2030.”

According to JLL, Riyadh saw the delivery of 400 keys, bringing the total hotel stock to 16,000 during the Q3-2020.

Meanwhile, Jeddah’s occupancy rates dropped to 38%, while average daily room rates (ADR) and revenue per available room’s (RevPar) were down by 33% and 62%, to register $181 and $61 respectively.

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Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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