Copyright gulfnews
Dubai: Red Sea Global (RSG), the Saudi developer behind the regenerative tourism destinations AMAALA and The Red Sea, has secured SAR 6.5 billion ($1.73 billion) in financing to advance the next phase of development at AMAALA.The funding comes from a consortium of Saudi banks led by Riyad Bank as sole underwriter, alongside The Saudi Investment Bank (SAIB) and Bank AlBilad as mandated lead arrangers. The credit facility combines conventional and Islamic financing and follows RSG’s Green Loan Framework, which aligns with international sustainability lending standards.The framework was first introduced in 2021, when RSG secured its initial green financing package for The Red Sea project — the first Riyal-denominated green loan in Saudi Arabia. The latest facility expands the developer’s partnerships with Riyad Bank, which also supported RSG’s SAR 2 billion debt financing for a joint venture with Kingdom Holding Company to develop the Four Seasons Resort on Shura Island, set to open later this year..First look: Saudi Arabia opens first island golf course at Red Sea mega project.Investor confidenceRSG Group CEO John Pagano said the new agreement reflects investor confidence in the company’s ability to deliver on large-scale sustainable tourism developments. “We have demonstrated that we are a developer who delivers, and we’re proud that our financing partners once again back our destinations — this time supporting AMAALA, which opens in the coming weeks,” he said.Riyad Bank CEO Nadir Al-Koraya described AMAALA as “an ambitious, sustainability-driven destination that will redefine wellness and luxury tourism,” adding that the project aligns closely with Saudi Arabia’s Vision 2030 goals for diversification and environmental stewardship.Gregory Djerejian, RSG’s Group Head of Investments and Chief Legal Officer, said the financing “reinforces our shared commitment to responsible, future-focused development,” and highlights the financial sector’s growing support for green projects in the Kingdom.The transaction was advised by Akin (borrower’s counsel) and Linklaters (lenders’ counsel), both of which played key roles in structuring the deal under internationally recognised Green Bond and Green Loan Principles..Saudi Railway sets up new SAR6 billion real estate fund in Makkah with Riyad Capital.Ultra-luxury wellnessLocated at Triple Bay, AMAALA is scheduled to open later this year with more than 1,400 hotel rooms across eight resorts. The destination focuses on ultra-luxury wellness and regenerative tourism, featuring the Corallium Marine Life Institute — a scientific research and education hub — and the AMAALA Yacht Club, which aims to become a regional centre for luxury yachting.The SAR 6.5 billion financing marks a major milestone in Saudi Arabia’s growing green investment landscape and underscores RSG’s expanding portfolio of sustainable tourism assets along the Red Sea coast.
