15 June 2021 | TDF in the News
A partnership between “Tourism Development” and “Extreme” to activate quality tourist destinations
The Saudi Tourism Development Fund signed an exclusive investment partnership agreement with Xtreme International to activate quality tourist destinations. The agreement aims to invest in developing and activating quality tourist destinations that include the various sectors targeted by the fund, including accommodation, adventure and entertainment activities, and organizing trips and experiences, directly or indirectly, in cooperation with local and international investors and operators.
It was agreed that the investment partnership would be structured through the establishment of a private equity fund with a financial company licensed by the Saudi Capital Market Authority, as part of the fund’s efforts to advance the development of quality tourism destinations in the Kingdom.
For his part, the CEO of the Fund, Qusai Al-Fakhri, said, “This agreement is the first of its kind in Saudi Arabia with a leading international company to support, activate and develop tourist destinations specializing in adventures and experiences,” pointing to the expected significant impact of this partnership in enriching the tourist experience in the Kingdom and attracting tourists. He is a fan of adventures and experiences, whose numbers are increasing at an accelerating pace around the world.
Al-Fakhri stressed that diversifying the sources of tourism income in Saudi Arabia will play a major role in achieving the goals of the national tourism strategy by increasing the sector’s contribution to the domestic product from 3% to 10% by 2030.
Saudi Arabia, with its natural and geographical diversity, is a fertile ground for such investments and is able to compete internationally in this field, as adventure tourism is one of the fastest growing tourism sectors globally, and its size is expected to more than triple to reach about $1.8 trillion by 2027, at a rate A compound annual growth rate of 15%, according to a report by ResearchDive.
On the sidelines of the signing ceremony, Al-Fakhri met with British Minister of State for International Trade Ranil Jayawardena, and they discussed the national strategy for tourism in Saudi Arabia, and promising investment opportunities for British investors, as well as aspects of joint cooperation in the tourism sector.
It is noteworthy that the Tourism Development Fund was established with a capital of 15 billion Saudi riyals to be the main enabler for the investor, with the aim of advancing the development of quality tourism projects that consolidate the Kingdom’s position on the global tourism map.
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