Saudi Arabia’s Tourism Development Fund has signed two new memoranda of understanding to accelerate tourism development in King Abdullah Economic City. The agreements support the Fund’s mandate to unlock high quality tourism investments aligned with the National Tourism Strategy and Saudi Vision 2030, while positioning KAEC as a globally competitive coastal destination on the Red Sea.
The principal MoU was signed between the Tourism Development Fund and Emaar, The Economic City, the master developer of KAEC. The agreement establishes a comprehensive framework for the planning, development and operation of tourism projects designed to elevate the city into a fully integrated, world class coastal destination. In its first phase, the collaboration focuses on creating a diversified tourism portfolio that includes all inclusive resorts, international hotel brands and lifestyle led destinations catering to a broad range of visitor segments, from beach tourism and experiential travel to family oriented offerings.
Planned developments outlined in the MoU include two five star beachfront resorts, premium branded residences operated by global hospitality brands, enhanced waterfront access, beach clubs, signature dining, spa and wellness facilities, yachting and water sports, family attractions, children focused experiences and entertainment offerings. Together, these projects aim to strengthen destination appeal, improve quality of life and attract foreign direct investment into KAEC.
Commenting on the agreements, Qusai Al-Fakhri, Chief Executive Officer of the Tourism Development Fund, said the MoUs reflect the Fund’s growing role in aligning public and private sector efforts to deliver high impact tourism projects. He noted that, as part of the tourism enablement of KAEC, the Fund is contributing to enhancing the city’s readiness to attract global hospitality brands and long term capital, while strengthening the competitiveness of Saudi Arabia’s coastal destinations more broadly.
The KAEC agreements sit within a wider national push led by TDF to move beyond financing alone, positioning the Fund as a strategic partner that supports project readiness, investment structuring and operator engagement across Saudi Arabia’s emerging tourism destinations. Alongside the Emaar agreement, TDF also signed a second MoU with K. Hovnanian M.E. Investments and Emaar, The Economic City. The US based developer brings extensive experience in mixed use residential and tourism developments under advanced operating models. The agreement aims to leverage K. Hovnanian’s expertise to support investment readiness, attract operators and ensure tourism projects in KAEC align with international standards and global best practices.
Abdulaziz Alnowaiser, CEO of Emaar, The Economic City, said the partnerships build on KAEC’s accelerated development momentum and growing stature as an integrated coastal destination, with flagship projects playing a critical role in boosting investor confidence and long term sustainability.
Robert Hofmann, Chief Executive Officer of K. Hovnanian M.E. Investments, said the MoU provides a strong framework for knowledge exchange and joint project development that supports Saudi Arabia’s ambition to become a leading global tourism and investment destination.
As Saudi Arabia continues to scale up its tourism ambitions, the Tourism Development Fund is increasingly positioned as a central pillar of delivery. Beyond KAEC, the Fund is expected to play a growing role in enabling coastal, leisure and lifestyle destinations across the Red Sea and beyond, supporting the Kingdom’s shift toward high quality, experience led tourism that attracts international visitors, operators and investors alike. With KAEC emerging as a flagship example of this approach, the latest MoUs signal how TDF is shaping the next phase of Saudi Arabia’s tourism story, one focused on long term value creation, global competitiveness and destination depth.
