Saudi Tourism Fund enlists local bank for $346.7 million project in holy city Medina

Saudi Tourism Fund enlists local bank for $346.7 million project in holy city Medina

Saudi Arabia's Tourism Development Fund will help finance a 1.3 billion-riyal ($346.7 million) project in the holy city of Medina together with Riyad Bank, as the kingdom steps up fundraising for a key part of Crown Prince Mohammed bin Salman's program to diversify the economy.

The 15 billion-riyal TDF signed an agreement with Medina-based Knowledge Economic City Co. and Public Investment Fund-backed Riyad Bank to finance a hub it called “the biggest of its kind.” TDF and Riyad Bank will each provide 391 million riyals in funding, according to a statement Thursday.

The complex near the Prophet's Mosque will comprise a five-star hotel, a shopping mall and other hospitality and entertainment facilities.

Saudi Tourism Authority has launched Tourism Shapers to equip more private sector involvement in ambitious plans

“This agreement is one of several successful agreements with local banks aimed at providing investors with attractive financial solutions that encourage investments into this promising sector,” TDF Chief Executive Officer Qusai Al-Fakhri said.

Opening to tourism is one of the ways Saudi Arabia intends to diversify the economy away from oil. Under a blueprint drawn up by officials, the goal is to turn the kingdom into one of the world's top five destinations, more than tripling the