Sustainable Tourism at Red Sea Global's AMAALA Destination
Red Sea Global, the developer behind Saudi Arabia’s new push towards sustainable tourism destinations, has announced the financial close of a new multi-utilities infrastructure project.
This project, set to cost around US$1.5bn, will provide clean energy and water to all the entire AMAALA project, which consists of three main developments: The Coastal Development, Amaala Island and Triple Bay.
What exactly is Red Sea Global’s AMAALA?
AMAALA is an ambitious project currently under development along the Red Sea coast in northwestern Saudi Arabia, designed to establish a luxury tourism destination that emphasises wellness, culture and sustainability.
Spanning 4,000 km², AMAALA aims to attract visitors with a range of offerings, including upscale accommodations and various recreational activities.
The first phase of the development is set to open in 2025, featuring eight hotels with approximately 1,300 rooms. By 2027, the project plans to expand further, with more than 3,000 hotel rooms across 29 properties and nearly 1,000 high-end residential villas.
The project is part of Saudi Arabia's Vision 2030 initiative, a strategy designed to lessen the nation’s reliance on oil revenues by diversifying into different industries, like tourism.
Building sustainability into AMAALA
While the project promises significant economic benefits—potentially creating around 50,000 jobs—it also raises questions about the environmental impact and the feasibility of its ambitious sustainability goals.
As AMAALA progresses, it will be crucial to monitor how effectively it balances luxury tourism with ecological responsibility.
Red Sea Global has drafted in companies from across the world to oversee the development of AMAALA’s sustainable infrastructure.
Now, a consortium led by EDF Group and Masdar, along with partners Korea East-West Power Co. (EWP) and SUEZ, has successfully reached financial close on this US$1.5bn multi-utility infrastructure project, which should make the whole development self-sufficient and sustainable.
The financial close was achieved with support from local and international financial institutions, including First Abu Dhabi Bank, Emirates NBD, Riyad Bank, Saudi National Bank and Alinma Bank.
The details of the multi-utility infrastructure project
The infrastructure facility will include:
- A 250 MW solar photovoltaic park
- 700MWh battery energy storage
- Transmission and distribution lines
- A desalination plant with a 37 million litre daily capacity
- Wastewater treatment plants
All in, this investment is expected to avoid approximately 350,000 tons of CO2e emissions annually.
What do the stakeholders and partners of the project say?
France’s EDF Group is one of the main partners of Red Sea Global in this infrastructure project. Beatrice Buffon, Group Vice-President and Chairwoman & CEO of EDF Renewables, says: "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."
Masdar CEO, Mohamed Jameel Al Ramahi, is also positive about his companies involvement. "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," he says.
Kim Young-Moon is CEO of East-West Power (EWP). His company was brought into the fold from South Korea to aid in overseeing the sustainability of this infrastructure project.
"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," he says.
Likewise, Pierre Pauliac, Chief Operating Officer and Executive Vice-President of SUEZ, was effusive about the project.
"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," he explained.
The outlook for AMAALA
The future looks bright for AMAALA, Red Sea Global and, more broadly, Saudi Arabian tourism as a whole.
John Pagano, Group CEO of Red Sea Global, says: "We have demonstrated that large scale tourism destinations can be powered using 100% renewable energy, while providing luxury experiences for guests and strong financial returns for partners.”
“This agreement with EDF, Masdar, EWP and SUEZ means we are on track to making AMAALA our second destination powered by sunlight, day and night."
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