Arab News, Thu, May 02, 2024 | Shawwal 23, 1445
PIF’s tourism investment arm Asfar to develop the city of Hail as next destination, CEO reveals
Saudi Arabia:
Saudi Arabia’s northwestern city of Hail will be the fifth destination
development of Saudi Tourism Investment Co., the firm’s CEO has revealed.
Speaking to Arab News on the sidelines of the
Future Hospitality Summit, Fahad bin Mushayt announced the plan, which comes
after the activation of the company’s projects in Al-Baha, Yanbu, Al-Ahsa, and
Taif.
The projects have all been launched within one
year of the Public Investment Fund-owned firm – also known as Asfar – being
unveiled.
The company is mandated to invest in new projects
and develop attractive travel destinations, incorporating hospitality, tourist
attractions, retail, and food and beverage offerings in cities across Saudi
Arabia.
Bin Mushayt said: “In almost one year, Asfar is
already playing in four destinations, with Hail coming soon, so I can reveal
that.”
The entity is working to bridge the gap between
the public and the private sector, as well as the local community, to create
unique experiences that abide by the DNA of both the nation and the cities
themselves, the executive noted.
This notion came to life during the summit, where
the company signed a number of agreements with hospitality developers to launch
four asset classes in the city of Yanbu.
Among them, Asfar announced the signing of
investment agreements with Baheej, a joint venture between the company and the
Tamimi-AWN alliance, as well as the Royal Commission for Yanbu.
“This morning, we announced our partnership with
Curtain Hospitality, and they are going to be the operator of our resort in
Yanbu, under the brand called Cloud 7. So the structure usually involves us and
the developer as an investor, and they bring the know-how to build real estate
and hospitality,” he said during the second day of the event.
The concept of Yanbu as Saudi Arabia’s most
up-and-coming “second-tier city” was not limited to Asfar’s CEO alone.
Speaking on a panel at the summit alongside
Mushayt, Abdulrahman Al-Bassam, a board member of Baheej, further emphasized
these ideas, stating: “Yanbu is going to be the gateway of the new Red Sea
Riviera, with four different asset classes expected to be operational by 2027.”
Adhering to its mandate, Asfar selects a different
private sector partner to develop each of their destinations, the CEO explained,
saying: “We are here to empower the private sector, to encourage them, to
encourage them to go and invest with us. And we give them a lot of incentives.”
He acknowledged that those companies put their
money into the subsidiary. However, Mushayt emphasized that they provide “a lot
of incentives” as a semi-government entity empowered by PIF, the Ministry of
Tourism, and the Ministry of Investment.
The PIF subsidiary utilizes a mix of domestic and
foreign investments to empower its initiatives, focusing on operators that are
suitable for the needs of the project, Mushayt said.
“The operator, if it’s a hotel operator, we bring
a hotel operator; if it’s an adventure park operator, we bring a theme park. In
fact, we have a theme park now, and we’re talking to international operators,”
he said.
The Asfar CEO further revealed that they have a
resort in Yanbu that would require cruises, “so we’re talking to Cruise Saudi,
and we’re talking to another international player.”
He added: “It’s a mix of foreign and local
operators, investors, and our hospitality management companies.”