��������

RIYADH: ��������’s Tourism Development Fund is pursuing partnerships with global banks to secure additional financing for large-scale hospitality and infrastructure projects, as interest in the Kingdom’s fast-growing travel market intensifies. 

Speaking to Arab News on the sidelines of the Future Hospitality Summit in Riyadh, Khalid Al-Shareef, director of large institutions coverage at TDF, stated that the fund is looking beyond its own capital base and local banking partnerships to support major developments.

This comes as the fund has supported more than 2,400 direct and indirect tourism projects, representing a total investment of over SR35 billion ($9.33 billion). These initiatives are contributing to the development of more than 9,200 hotel rooms and villas across the country. 

The drive aligns with ��������’s broader Vision 2030 objective of increasing tourism’s contribution to gross domestic product from 3 percent to 10 percent and creating 1 million new jobs within the industry. 

Al-Shareef told Arab News: “We are also bringing inbound international banks to help us support, whether it’s equity investments or in terms of financing.” 

He added: “We look forward to expanding, and it all depends on where we are headed. We have a roadmap, which is the national tourism strategy, and wherever we find the gap, you will find us there participating.” 

The spokesperson revealed that TDF met with a couple of banks and received strong interest across the board. “The Saudi market is growing at a fast pace; the numbers are talking for themselves. So, everyone is interested to join and be part of this growth,” he added. 

According to Al-Shareef, TDF participates in projects through three key financing mechanisms: debt, equity, and guarantees in partnership with banks. He emphasized the importance of de-risking projects, particularly for small and medium enterprises. 

“Some projects have high risk, especially for SMEs. We have partnered with a couple of local banks to provide guarantees for them to mainly cater to the mass market all across the Kingdom,” he said. 

The fund also supports entrepreneurship through its TDF Grow platform, aimed at empowering startups and tour guides through education and training. 

“We have supported more than 8,800 participants, all world-class education classes from international and well-known entities to offer their courses here in ��������,” the TDF spokesperson said. 

Beyond financing, TDF is positioning itself as a facilitator within the tourism ecosystem, simplifying processes and enhancing access to support services. 

“As we have mentioned, financial support is there, but non-financial support is also important, especially for SMEs. You have to give the right education and guidance for them to thrive and hopefully become bigger companies over time,” he said. 

Al-Shareef emphasized that the guidance component is crucial and noted that non-financial support also involves connecting SMEs with various entities. 

“Today, rather than going to 10 or 15 entities to operate a hotel or what have you, we are basically trying to be a one-stop shop that will guide you on where to go to get your licenses and permits,” the spokesperson added. 

Al-Shareef noted the diversity of ��������’s tourism landscape, ranging from beaches in the Eastern Province and Jeddah to mountainous regions in the south and desert terrain in the north. TDF is focusing efforts on underdeveloped areas that require more government incentives. 

“Currently, we are focusing more on tier two and tier three cities. Big cities like Riyadh and Makkah are carrying themselves, especially with the banks supporting them heavily,” the spokesperson said. 

He cited Abha, Al Baha, and AlUla as examples of regions receiving increased attention to ensure more balanced tourism development across the Kingdom.