The agreement is to establish a 4-star boutique hotel featuring 110 hotel rooms in Jeddah, one of the targeted tourist destinations. The hotel will be designed with a mix of the architectural styles of Makkah region and the local style.

The announcement of this agreement coincided with the Future Hospitality Summit - FHIS - held in Riyadh from May 7 to May 9, 2023, which witnessed the presence of a large number of government dignitaries and officials of the tourism and hospitality industry, as well as a group of prominent developers, investors, hotel owners and operators, to discuss the prospects of growth and development of the tourism and hospitality sector in the Kingdom.

The hotel will be characterised by its design, inspired by the local style mixed with architectural touches specific to the Makkah region. Shada Development and Real Estate Investment aims to revive, preserve and highlight the essence of the cultures of the various regions in the Kingdom, especially the architectural cultural heritage of the city of Jeddah. TDF’s agreement with Shada Hotels will contribute to the growth of the Kingdom's economy and achieve the goals set out within the National Tourism Strategy.

Qusai bin Abdullah Al-Fakhri, CEO of the Tourism Development Fund, said: “TDF’s purpose is to be the main enabler for investors, in order to serve the objectives of the National Tourism Strategy. This agreement with our partner Shada Company is one of the ways in which the Fund is helping to activate tourism destinations in the Kingdom, which will contribute to supporting investment and motivating investors in the private sector through financing tourism projects.”

Reem Garrash, CEO of SHADA Hospitality, welcomed the signing of the financing agreement with TDF, stressing the role the private sector is playing in economic development through projects that enrich the tourist experience. She said: “Jeddah is a top tourist destination due to its geographical location between Makkah and Madinah, in addition to the richness of its urban features and its urban development distinction, which makes it an attractive destination for tourists from all over the world.”

TDF’s mandate is to promote and support investments and tourism projects in the targeted tourist destinations in KSA, through a package of programs, financing solutions and facilities that it provides through its various financial products. TDF aims to stimulate the private sector and support its contributions to tourism projects, incubating innovative ideas that contribute to the prosperity of the tourism future of KSA by attracting millions of visitors, as set out by the National Tourism Strategy.