Saudi Arabia’s Tourism Development Fund, Ennismore, Al Rajhi Capital establish hospitality investment fund

Saudi Arabia’s Tourism Development Fund (TDF) has signed a tripartite agreement with global lifestyle hospitality company, Ennismore, and Al Rajhi Capital, one of the leading asset managers in Saudi Arabia.

The agreement aims to establish a hospitality investment fund with a capital of SAR1.5bn.

Through the agreement, TDF will enable investments to boost tourism in line with Saudi Arabia’s National Tourism Strategy, aiming to provide a variety of leisure facilities, and food and beverage experiences.

These efforts are expected to provide around 2,000 hotel rooms and training opportunities for Saudi nationals, while enhancing the quality of investment opportunities and offerings within the sector.

The signing of the fund establishment agreement complements the initial MoU signed by TDF and Ennismore to launch an investment fund, which focused on developing lifestyle hotels in the kingdom, during the 5th edition of the Future Investment Initiative (FII) in October 2021.

The new agreement will see the entities identify locations and provide financing options for projects throughout the kingdom. While TDF will invest in the newly established investment fund, Ennismore will take the lead in developing and operating these projects under the umbrella of its lifestyle brands. Al Rajhi Capital will manage the investment fund and attract investments.

Qusai Al Fakhri, CEO of TDF said: “Joining forces with both Ennismore and Al Rajhi Capital is yet another positive step towards realisng our ambitions to advance the tourism sector. We seek to continuously deliver new and diversified options, enabling the private sector to invest in the growing hospitality sector, with a view to enrich visitors’ experiences while achieving sustainable tourism and economic development.”

Gaurav Bhushan, co-CEO of Ennismore said: “Our partnership with TDF and Al Rajhi is a significant part of our growth strategy for the region. Ennismore is pleased to further cement its commitment to the growing Saudi hospitality sector through employing, training, and advancing national competencies, as well as providing tourism services that would build closer connections with international and local tourists.

Waleed AlRashed AlHumaid, CEO of Al Rajhi Capital, said: “The agreement reflects the importance of partnership between the private and public sector, let alone opens up lucrative investment opportunities where capitals can be invested in national programs geared towards the tourism industry, The industry has shifted to the development of modern and sustainable tourist destinations, capitalising on the extraordinary potential and wealth of our national heritage, tourism and landmarks that help draw in more local and Global investments and push us closer to reaching our national economic objectives.”