Saudi wealth fund commits $3bn to build mountain resort

Saudi wealth fund commits $3bn to build mountain resort

Saudi Arabia's sovereign wealth fund will invest almost $3 billion on a tourism project in a mountainous region near the kingdom's border with Yemen.

The Public Investment Fund will provide SAR11 billion to Soudah Development Co., which will build 2,700 hotel rooms and 1,300 homes in an area that includes Al-Soudah, the tallest peak in Saudi Arabia, according to Husameddin AlMadani, Soudah's chief executive officer.

The kingdom has been largely shut off to foreign tourists for decades, while citizens preferred to go on holiday abroad. That's changed with the rise of de facto ruler Crown Prince Mohammed Bin Salman, who's trying to open up the country and diversify the economy away from oil.

“Many of us living in Saudi Arabia didn't know this destination existed,” AlMadani said in an interview. “I lived in Riyadh for 30 years before I knew that I could take an hour flight and see this beautiful place.”

Growing tourism

Encouraging Saudis to spend more domestically by developing entertainment and tourism sites is a key part of Prince Mohammed's plans. The kingdom has also introduced tourist visas to make it easier for foreigners to enter the country and unmarried couples are now allowed to stay together in hotels. It ended a ban