RIYADH — The Tourism Development Fund (TDF) in partnership with Riyad Bank launched on Thursday the “Tourism Partners” program, allocating a funding capital of up to SR2 billion ($530 million) to enable the development of Saudi Arabia’s key destinations.
The program is a first of its kind where the public and private sector work collaboratively against individual performance indicators on each side, ensuring the highest standards of governance to achieve the objectives of the program.
TDF introduced three products under the program that aim to address the financing needs of companies of all sizes in the private sector and enable the development of tourism facilities and activities in the Kingdom’s key destinations. Each product provides a value of funding ranging from SR1 million to more than SR100 million for megaprojects, with options varying between direct support from TDF and co-financing with Riyad Bank, in addition to providing guarantees of up to 90 percent.
The “Tourism Partners” program complements the “Shareek” initiative launched by Crown Prince Muhammad Bin Salman to enhance the private sector’s role in the sustainable growth of the national economy.
H.E. Qusai Al-Fakhri, CEO of TDF said: “An attractive investment environment enhances investors’ appetite for tourism projects, which in turn helps drive the tourism sector. TDF’s primary role as the tourism investor’s partner is to provide financing solutions that overcome barriers to mobilize investments and help investors achieve their goals. Through this partnership, TDF paves the way for private companies, including small and medium-sized companies, to harness the massive opportunities in tourism.”
The two entities have set clear goals as part of the program, that will be achieved during 2021 with the contribution of more than 150 employees from both sides. The program will enable the development of up to 113 tourism projects across the Kingdom in 3 categories and targeting 7 destinations identified by the National Tourism Strategy.
Tareq A. Al-Sadhan, CEO of Riyad Bank, said: “Riyad Bank is proud to be the first partner with TDF under the framework of this program, which reflects our commitment to supporting the economic development of the Kingdom. The “Tourism Partners” program aims to further strengthen the Kingdom’s position as an investment and business hub, improving the Kingdom’s position on global ease of doing business rankings.”
Relationship Managers from Riyad Bank will promote the “Tourism Partners” program to the bank’s client base to attract the largest amount of investment from the private sector toward value-added tourism projects.
The Tourism Development Fund was established to drive the growth of Saudi Arabia’s tourism sector, in line with the National Tourism Strategy, and increase the GDP contribution of the tourism sector from 3 percent to 10 percent, as well as create 1 million new jobs by 2030.