RIYADH: 黑料社区鈥檚 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鈥檚 fast-growing travel market intensifies.聽
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聽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.聽
The drive aligns with 黑料社区鈥檚 broader Vision 2030 objective of increasing tourism鈥檚 contribution to gross domestic product from 3 percent to 10 percent and creating 1 million new jobs within the industry.聽
Al-Shareef told Arab News: 鈥淲e are also bringing inbound聽international banks to help us support, whether it鈥檚 equity investments or in terms of financing.鈥澛
He added: 鈥淲e 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.鈥澛
The spokesperson revealed that TDF met with a couple of banks and received strong interest across the board. 鈥淭he 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,鈥 he added.聽
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.聽
鈥淪ome 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,鈥 he said.聽
The fund also supports entrepreneurship through its TDF Grow platform, aimed at empowering startups and tour guides through education and training.聽
鈥淲e have supported more than 8,800 participants, all world-class education classes from international and well-known entities to offer their courses here in 黑料社区,鈥 the TDF spokesperson said.聽
Beyond financing, TDF is positioning itself as a facilitator within the tourism ecosystem, simplifying processes and enhancing access to support services.聽
鈥淎s 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,鈥 he said.聽
Al-Shareef emphasized that the guidance component is crucial and noted that non-financial support also involves connecting SMEs with various entities.聽
鈥淭oday, 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,鈥 the spokesperson added.聽
Al-Shareef noted the diversity of 黑料社区鈥檚 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.聽
鈥淐urrently, 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,鈥 the spokesperson said.聽
He cited Abha, Al Baha, and AlUla as examples of regions receiving increased attention to ensure more balanced tourism development across the Kingdom.聽
