Red Sea Global Partners Achieve Financial Close on Multi-Utilities Infrastructure Facility at AMAALA Tourism Destination
- Consortium, led by EDF Group and Masdar, alongside their partners Korea East-West Power Co. (EWP) and SUEZ, secured finance from local and global financial institutions
- Overall project build cost is approximately 1.5 billion USD
- New multi-utility infrastructure facility will service AMAALA, saving 350,000 tons of CO2 emissions annually
- Developed by Red Sea Global, regenerative destination AMAALA is expected to start welcoming guests in 2025
Riyadh – November 03, 2024 – Red Sea Global (RSG), the developer behind regenerative tourism destinations AMAALA and The Red Sea, has today announced that a consortium led by EDF Group and Masdar, alongside their partners Korea East-West Power Co. (EWP) and SUEZ, has reached the financial close for a multi-utilities infrastructure facility at AMAALA. The overall project build cost is approximately 1.5 billion USD. Developed by RSG, AMAALA is a new destination with wellness at its core, nestled along the Red Sea coast of the Kingdom of Saudi Arabia and expected to start welcoming guests in 2025.
The financial close was made possible due to the support of local and global financial institutions including: First Abu Dhabi Bank (FAB), Emirates NBD, Riyad Bank, Saudi National Bank (SNB), and Alinma Bank. The milestone underscores the consortium's commitment to realising AMAALA's promise of unparalleled luxury, sustainability, and cultural enrichment.
This achievement follows the awarding of a 25-year multi-utility concession agreement with Red Sea Global in September 2023, with the option to extend, and involves the financing, engineering, development, construction, operation, maintenance and transfer of a multi-utilities infrastructure facility to service the AMAALA destination.
The facility consists of a fully optimised and decarbonised off-grid renewable energy system, which will generate electricity from a 250 MW solar photovoltaic park, 700MWh battery energy storage, transmission and distribution lines, and desalination plant, with a capacity of 37 million litres of drinking water per day and wastewater treatment plants securing the needed base load around the clock.
The innovative project will avoid the equivalent of nearly 350,000 tons of CO2e emissions every year compared to average infrastructures of this kind, and it will be a cutting-edge infrastructure project, paving the way for a new era of eco-friendly luxury tourism.
Commenting on the announcement, Beatrice Buffon, EDF Group Vice-President, International Division, and Chairwoman & CEO of EDF Renewables, said: “Reaching the financial close of AMAALA is a milestone achieved with Red Sea Global's support and the dedication of our team and partners. We are proud to bring our technical expertise as well as our strong environmental and social commitment to this unique large scale off-grid system that will deliver sufficient carbon-free electricity to power 65,000 individuals, as well as uninterrupted water access 24/7. This project mixing renewable energies, energy storage, transmission, and a desalination plant, sets new standards for the EDF Group and should be replicable in other geographies.”
Masdar Chief Executive Mohamed Jameel Al Ramahi said: “As a global pioneer in developing clean energy solutions, Masdar is delighted to be involved in developing this unique fully integrated utility project in the beautiful tourism destination of AMAALA, in partnership with EDF Group, EWP and SUEZ, and thanks to the support and backing of the projects lenders: First Abu Dhabi Bank (FAB), Emirates NBD, Riyad Bank, Saudi National Bank (SNB), and Alinma Bank. With our invaluable combined expertise and experience, we look forward to implementing this innovative infrastructure project, incorporating solar, battery storage and desalination, to deliver the sustainable clean energy that will power the vision and promise of AMAALA, and support the Kingdom’s Vision 2030 objective of establishing KSA as a sustainable luxury tourism destination in the region.”
Commenting on the announcement, Kim Young-Moon, CEO of EWP said: “We are excited to announce the financial close of our renewable energy project in Saudi Arabia, a significant step in our commitment to a sustainable future. This project will reduce carbon emissions, improve air quality, and create jobs, boosting local economic growth. As we aim to lead the global energy transition, this project is a key milestone, driving innovation in the renewable energy sector and advancing our ambitious goals.”
Pierre Pauliac, Chief Operating Officer Water, Executive Vice-President at SUEZ, said: “We are delighted to contribute to this strategic project for the development of Saudi Arabia. SUEZ will be part of the construction of all the water utilities equipment. In addition, the Group will operate during 25 years the state-of-the-art desalination plant to secure AMALAA’s access to drinking water, as well as the water networks. SUEZ will also ensure the operation and maintenance of a wastewater treatment plant with advanced treatment, to produce high-quality water for irrigation. It’s a new demonstration of SUEZ’s commitment to providing access to water services through resilient and innovative solutions.”
AMAALA will go beyond sustainability to have a regenerative impact on the environment. By 2040 AMAALA plans to achieve a 30% net conservation benefit for local ecosystems. This will be accomplished by enhancing biologically diverse habitats such as mangroves, seagrass, corals, and land vegetation, promoting biodiversity while contributing to carbon sequestration.
The first phase of AMAALA is set to welcome its first guests in 2025. Upon completion, the destination will feature over 4,000 hotel rooms across 30 hotels, and 1,200 high-end residential villas, apartments, and estate homes. AMAALA will also host a vibrant community for more than 15,000 residents and workers, creating a dynamic and sustainable living environment.
About Red Sea Global
Red Sea Global (RSG - www.redseaglobal.com) is a closed joint-stock company wholly owned by the Public Investment Fund (PIF) of Saudi Arabia. It is a vertically integrated real estate developer with a diverse portfolio across tourism, residential, experiences, infrastructure, transport, healthcare, and services. This includes the luxury regenerative tourism destinations The Red Sea, which began welcoming guests in 2023, and AMAALA, which remains on track to welcome first guests in 2025. A third destination, Thuwal Private Retreat, will open this year, and RSG has also been entrusted with refurbishment works at Al Wajh Airport, focused on upgrading the existing terminal and infrastructure, and building a new international terminal. RSG is a cornerstone of Saudi Arabia’s ambition to diversify its economy. Across its growing portfolio of destinations, subsidiaries, and businesses, RSG seeks to lead the world towards a more sustainable future, showing how responsible development can uplift communities, drive economies, and enhance the environment.
RSG is the visionary company behind some of the world’s most ambitious
development ventures, including luxury regenerative tourism destinations
such as The Red Sea and AMAALA.
Across its portfolio, RSG leverages the most innovative concepts,
strategies, and technologies to deliver projects that actively enhance
the wellbeing of customers, communities, and environments.