AMAALA Signs MoU with Saudi Contractors Authority

Organizations to unify efforts to empower Saudi firms and localize contracting sector

Riyadh, 22 March, 2021: Red Sea Global (RSG), the multi-project developer behind the world’s most ambitious regenerative tourism destinations, The Red Sea and Amaala has announced the signing of a Memorandum of Understanding (MoU) with the Saudi Contractors Authority (SCA), a government subsidiary authority of Ministry of Municipal and Rural Affairs.

In line with the ambitions of both organizations and the wider Vision 2030 goals, the MoU sets forth a preliminary pact for cooperation in a number of fields. This includes allowing access to an online “Project Participation Platform” which allows Amaala to share projects in its pipeline with members of the SCA and receive information on qualified and interested parties intending to bid.

“Saudi Arabia is undergoing an exciting transition towards a new and diversified economy. Amaala is a key driver of change, bringing with it a wealth of opportunities for the private sector and it is our ambition to ensure we support Saudi businesses to participate in and benefit from the development of this significant destination from the outset said John Pagano, Group CEO of RSed Sea Global, the developer behind Amaala destination.

“This new partnership with SCA will help us to better connect with Saudi people and businesses, which will in turn enable us to meet our ambitious Saudization targets, whilst connecting the association with contractors already engaged on our project to drive awareness of their important programs,” Mr Pagano added.

The MoU also outlines a framework of joint cooperation between both entities, including the establishment of staff training courses and sharing of studies and statistics relating to the local construction sector.

Eng. Thabet Al-Sawayeed, Governor at SCA said: “This partnership is a key step towards achieving our goal of aiding Saudi contractors to participate in the new landscape of projects established to drive the Vision 2030 strategy forward successfully. Working with Amaala and their existing contractors in this capacity will also allow us to further enable the uptake of our localization programs which incentivize organizations to empower Saudis through training and employment.”

Efforts will be aligned to localize the contracting sector by encouraging contractors engaged with Amaala to benefit from the localization programs and incentives offered by SCA. Amaala is central to a number of growing industries and, once completed, the destination will support more than 50,000 direct, indirect and induced jobs providing opportunities to people throughout the country.

This MoU follows efforts to strengthen relationships with local private and public sector organizations. Similar MoUs creating partnerships, outlining collaborative ways of working, and providing cross-development opportunities, have already been signed with the Saudi Council of Engineers, Ministry of Tourism, Ministry of Environment, Water and Agriculture and MOMRA.

Amaala has recently awarded several construction contracts to a number of Saudi companies including Al-Tamimi Group, HASCO and Saudi Real Estate (Binyah). Work is well underway on-site to progress the enabling infrastructure and groundwork required to develop the destination.

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Located along Saudi Arabia’s north-western coast and spanning 4,155 sq. km, the year-round destination features a pristine landscape and diverse natural ecosystems, coupled with a unique and intriguing heritage and local culture.

Designed to evolve and elevate the very best in travel, Amaala is an ultra-luxury destination and the first global integrated family wellness destination, set to curate transformative personal journeys inspired by arts, wellness, and the purity of the Red Sea. State-of-the-art facilities and an attractive year-long events calendar will ensure Amaala is a distinctive wellness destination worldwide.

Phase One of Triple Bay is well underway and set to be complete in 2024. It will consist of eight resorts offering upwards of 1,200 hotel keys. Contracts awarded by AMAALA to date are worth just over SAR 7 billion (USD 1.9 billion).

Once complete, Amaala will be home to 3,900 hotel rooms across 29 hotels, and approximately 1,200 luxury residential villas, apartments, and estate homes, alongside high-end retail establishments, fine dining, wellness, and recreational facilities.

Sustainability is a cornerstone of Amaala, which will be powered by 100% renewable energy for which the resulting saving in CO2 emissions to the atmosphere is equivalent to nearly half a million tons each year. The destination will operate with a zero-carbon footprint once fully operational. A Public Investment Fund company and a key contributor to Vision 2030, Amaala will establish new standards in luxury and wellness.