Saudi Arabia’s Tourism Development Fund (TDF) has deployed SR2 billion ($533.3 million) of capital to finance quality tourism projects with a total value of around SR6 billion, since its establishment in June 2020. 

 

The remaining SR4 billion has come from private sector investments, highlighting the Fund’s pivotal role in activating the private sector’s involvement in sustainable tourism development, said Ahmed Al-Khateeb, Minister of Tourism and Chairman of the Board of Directors of TDF. He praised the Fund’s achievements since its establishment last year, which are contributing significantly to the progress of Saudi Arabia’s National Tourism Strategy (NTS).

 

During this period, TDF has enabled several high-quality tourism projects, approximately 20% of which are for SMEs. Of these projects, around 30% are located in underdeveloped tourist areas, the development of which is anticipated to attract further investment in the coming period.

 

TDF's achievements directly support Saudi Arabia’s NTS by delivering projects in priority destinations, addressing gaps and enabling investment opportunities with the aim of providing a world-class experience for tourists in the kingdom.

 

During the 18-month period ending September 30, 2021, TDF enabled projects located in nine major tourist destinations within the kingdom, covering sectors such as accommodation, shopping, tourism experiences and activities, and entertainment facilities, among others. These projects will add an estimated 3,500 rooms and 21,000 jobs over the next three years.

 

Furthermore, to enhance its complementary relationship with banks in the kingdom, TDF has signed agreements with several local banks with the aim of delivering the Fund's services to the largest possible segment of investors and enhancing support for them by providing comprehensive financing options. 

 

A prominent example of this is TDF’s agreement with Riyad Bank to launch the ‘Tourism Partners’ programme, with a financing value of SR2 billion.

 

Al-Khateeb reflected on the Fund’s achievements during a visit to the new TDF headquarters in Riyadh’s King Abdullah Financial District, where he was received by TDF’s Board of Directors and Executive Team, headed by CEO Qusai Al-Fakhri.

 

Qusai Al-Fakhri, CEO of TDF, said: “We are grateful for the development of a highly collaborative environment within the kingdom’s tourism ecosystem, which enhances our ability to enable private sector investments in close cooperation with other government entities. Ultimately, our goals are aligned with the National Tourism Strategy, and we are pleased to share that TDF is currently collaborating with more than 235 private investors to enable projects that are in line with its objectives – a number that is rapidly growing as investors seek to take advantage of the sector’s expected boom.”

 

TDF works in direct coordination with the National Development Fund, and in close cooperation with its partners from government institutions within the Saudi tourism ecosystem, to provide investors with unparalleled opportunities. 

 

The Fund provides support to SMEs and large institutions alike, ranging from planning to providing support from various tourism-related government agencies. It Fund offers a variety of tailored solutions that suit the needs of investors, including direct financing, bank guarantees, and co-financing with banks.-- TradeArabia News Service