Saudi Arabia on Sunday announced the formation of a Tourism Development Fund to boost growth across the sector.
The fund will launch a range of equity and debt investment vehicles, with an initial $4 billion (SR15 billion) capital and $45 billion (SR165 billion) in memoranda of understanding already signed with private banks, the ministry of tourism said.
The Tourism Development Fund, which has been approved by the Council of Ministers, will collaborate with private and investment banks to support private-sector developments and incentivize further investment across the industry.
The Tourism Development Fund’s launch is part of the first phase of the National Tourism Strategy, which focuses on developing and enhancing 38 sites across seven destinations by 2022.
Funding will be deployed to support mixed-use destinations, to address gaps in the tourism value chain, and to enable technologically-enhanced tourism.
Projects supported by the fund will include flagship mixed-use and hospitality developments by leading international operators and investors with the aim of enhancing Saudi Arabia’s tourism offering, supporting growth across domestic and international tourism, attracting foreign direct investment and driving job creation.