The Royal Commission for AlUla has announced plans to offer projects worth SAR 6 billion ($1.6 billion) for private sector participation, signaling a significant move to accelerate the development of the historic region as a premier global tourism destination. The initiative is a key component of Saudi Arabia’s Vision 2030, aimed at diversifying the kingdom’s economy beyond oil.
A $1.6 Billion Vision for Private Partnership
Phillip Jones, Chief Tourism Officer of the Royal Commission for AlUla, revealed that approximately 21 distinct projects will be presented to the market by the end of this year or early 2025. This strategic push for private funds follows a period of primary funding from the kingdom’s finance ministry. The move is designed to attract both local and international investors to co-develop the next phase of AlUla’s infrastructure and hospitality offerings.
Fueling Growth Towards Vision 2030
With development now entering its second phase, AlUla is on a clear trajectory for expansion. The region welcomed 300,000 visitors last year and has set an ambitious target of attracting one million visitors annually by 2030. Jones noted that the project is progressing on schedule, with Phase Two expected to be completed by the 2030 deadline. Currently, about 70 percent of visitors are from the Gulf region, with the remaining 30 percent originating from key international markets including the US, UK, Europe, India, and China.
Unwavering Commitment Amidst Spending Reviews
Despite a broader rationalisation programme underway across the kingdom, Jones confirmed that AlUla’s development has not been impacted. The project has successfully secured its budget for the next five years, ensuring stability and continuity for its ambitious plans. This financial security provides a solid foundation for potential private investors looking to engage with one of the region’s most prominent giga-projects.
Path to a Potential IPO
Looking further ahead, Jones indicated that an Initial Public Offering (IPO) is under consideration for the AlUla project. While discussions are still premature, a potential listing could materialize by the end of the decade. An IPO would represent a major milestone, further integrating the historic site’s development into the global financial markets and offering a new avenue for public investment.
About The Royal Commission for AlUla
The Royal Commission for AlUla (RCU) was established by royal decree in July 2017 to preserve and develop AlUla, a region of outstanding natural and cultural significance in North-West Saudi Arabia. RCU’s long-term plan outlines a responsible, sustainable, and sensitive approach to urban and economic development that preserves the area’s natural and historic heritage while establishing AlUla as a leading global destination for arts, heritage, culture, and nature.
Source: AGBI
