Skift Travel News Blog

Six Senses Southern Dunes, the Red Sea has officially opened in Saudi Arabia.

The Foster + Partners designed resort features 36 guest rooms and 40 pool villas that have been strategically placed to embrace the expansive views of the surrounding Arabian Desert.

According to Six Senses, the architecture and landscaping of the resort has been designed to ‘reflect the harmonious coexistence between Nabataean cultural roots and contemporary amenities,’ with the interiors reflecting the ‘tones and textures of the sandy dunes and soft furnishings drawing from the rich colors and patterns of traditional Bedouin tribal dress.’

Six Senses Southern Dunes, The Red Sea also aims to be the first LEED Platinum resort in Saudi Arabia, through a number of initiatives including electricity produced at a dedicated solar farm, a plastic-free policy, and chef’s garden for growing produce.

“Everything we’re doing here reflects our unwavering commitment to sustainability and cultural preservation, while also pushing the boundaries of adventure and wellness. This part of the world holds much intrigue for visitors and immense potential for regenerative tourism. We aim to showcase the unique beauty and cultural richness of this region, while promoting sustainable tourism practices that contribute to economic growth and heritage conservation,” said Fredrik Blomqvist, general manager of Six Senses Southern Dunes, The Red Sea in a press release.

Red Sea Global, a company fully owned by Saudi Arabia’s Public Investment Fund, is exploring the possibility of a public market offering, with plans to launch as early as 2026.

The company is currently examining various options for a public market event, including an initial public offering or the establishment of a real estate investment trust (REIT), CEO of Red Sea Global, John Pagano, stated in an interview with Bloomberg.

Even as he did not provide specifics on advisers, banks, or valuation, Pagano said the company is currently holding preliminary discussions with banks and stakeholders.

He said the company plans to go public by 2026 or 2027, after the hotels have been in operation for around two years, with a proven record of occupancy, cash flow, and profitability. The priority for the company now is to create a revenue stream that supports its value.

Pagano said the concept of public real estate companies has mostly disappeared from a property markets standpoint on a global scale. Instead, real estate investment funds are becoming increasingly popular because of their tax efficiency and accessibility to a wider range of investors.

Flagship Projects for Saudi Arabia’s Vision 2030

Red Sea Global was formed by merging two state-controlled developers by the Saudi sovereign wealth fund in 2021, where Amaala was taken over by the Red Sea Development Company.

Formerly known as The Red Sea Development Company, Saudi Arabia’s flagship tourism project developer rebranded to Red Sea Global last year.

Speaking to Skift earlier, Pagano had called the Red Sea Project and Amaala, the flagship projects for Saudi Arabia’s Vision 2030. He said the developments would be instrumental in opening the country up to global visitors.

By 2030, the two projects are expected to create 120,000 jobs — 70,000 direct and 50,000 indirect.

Amaala is expected to span over 4,000 square kilometers and house 25 hotels and around 900 luxury residential villas, apartments, and estate homes upon its completion in 2027.

The first phase of development is anticipated to conclude in mid-2024 and offer over 1,300 hotel rooms across eight resorts.

During the Skift Global Forum East in Dubai last year, Nicholas King, the group chief development officer of Red Sea Global, had revealed that the first three hotels at the Red Sea Project would open in 2023, followed by the next 13 in 2024.

American Express Global Business Travel has partnered with Emirates Group-owned dnata to offer its global clients more local expertise in the Middle East region.

The agency has signed a “preferred travel partner agreement” with Dubai-based dnata Travel Management. It will provide full end-to-end travel and meetings management services to Amex GBT’s customers, the company said.

Dnata Travel Management is part of the dnata Travel Group, which is the travel division of dnata, a global air and travel services provider. Amex GBT, and other travel agencies, often establish these types of partnerships with “local travel partners” in countries where they do not have a proprietary operation.

The pair also have some history, as dnata acquired a 23 percent stake in corporate travel agency Hogg Robinson Group in 2008, which was bought by Amex GBT a decade later. Alongside investment firm Boron it was a significant minority shareholder at the time.

The tie-up comes as the Middle East embarks on a number of large scale projects, including Saudi Arabia’s Neom project. The country is eying a 100 million-visitor target per year by 2030. “Saudi has huge ambitions,” the tourism authority’s chief technology officer Choon Yang Quek said during Skift Global Forum earlier this year.

“We look forward to working with Amex GBT and its clients as the region sees strong growth in corporate travel, fuelled by mega-projects and companies that are seeking to expand,” said Rashid Al Awadhi, senior vice president – dnata Travel Group, Middle East and India.

Adnan Kazim, chief commercial officer at Emirates Airline, will be speaking at Skift Global Forum East in Dubai, which takes place December 13-15.

Saudi Arabia’s national flag carrier Saudia announced on Wednesday that it has signed an agreement with German air taxi startup Lilium to purchase 100 jets.

With this purchase Saudia intends to launch new electric point-to-point connections as well as seamless feeder connections to Saudia’s hubs for business class guests, the airline said in a release.

Saudia also expects to support Lilium with the necessary regulatory approval processes in Saudi Arabia for certification of the Lilium jet.

With this Saudia will be the first airline in the Middle East and North Africa region to develop the all-electric vertical take-off and landing (eVTOL) network in the region. The agreement will also help Lilium gain a foothold in the region.

The agreement with Lilium will contribute effectively to spurring sustainable tourism in Saudi using zero-emission aviation, said Ibrahim S Koshy, CEO of Saudia.

“Saudia intends to meet a growing demand for regional air mobility and offer guests a superior on-board experience. The potential for such an airborne transit network is limitless,” Koshy said.

While no timeline has been mentioned for the Saudia order, Lilium’s air taxi is scheduled to enter service in 2025, with production beginning as early as next year.

With orders worth approximately $2 billion, Lilium has already signed deals with Brazilian airline Azul, private jet company NetJets, as well as private jet company Globeair.

Saudi Arabia’s flagship tourism project developer has rebranded to Red Sea Global (RSG) and said it would open three resorts in 2023 and 13 more in 2024, reported Al Arabiya on Tuesday.

Formerly known as The Red Sea Development Company (TRSDC), Red Sea Global has long been working on a project along the Red Sea and Amaala, a resort being constructed on Saudi Arabia’s northwest coast. Both efforts are part of the country’s efforts to diversify its economy by boosting new sectors such as tourism while using renewable energy.

On Tuesday, the developer said its mandate had expanded to oversee up to a dozen projects stretching the length of the Red Sea coast of Saudi Arabia, with the potential to expand beyond the kingdom. It plans to open 16 resorts between now and 2024.

Red Sea Global is a closed joint-stock company owned by the Saudi Public Investment Fund.

Abu Dhabi-based carrier Etihad Airways has got the former boss of Portugal’s national carrier TAP, Antonoaldo Neves, as its new CEO.

Etihad’s earlier boss Tony Douglas had agreed to join RIA — Saudi Arabia’s newest airline. Earlier reports had suggested that global consulting firm Korn Ferry had been looking to find a replacement for Douglas.

Neves’ appointment news comes a day after reports of the Supreme Council for Financial and Economic Affairs transferring full ownership of Etihad Aviation Group to ADQ, an Abu Dhabi-based investment and holding company.

“The transfer complements ADQ’s efforts to realize Abu Dhabi’s vision to strengthen the emirate’s position as a global aviation hub  delivering integrated and competitive aviation services,” a release from the investement company stated on Tuesday.

Earlier this year, Etihad Aviation Group’s ancillary businesses were transitioned into ADQ to create a new integrated aviation support services company.

After the privatisation of TAP in 2015, the airline was renationalized during Covid. As a result of the exit of private shareholder David Neeleman, Neves’ stint with the Portugese carrier came to an end in September 2020.

Soon after his exit from TAP, Neves went on to launch a startup — P2D Travel, which Neves himself describes as “a platform to empower anyone to earn money by selling travel on social networks.”

In August 2021 it had been reported that his startup had received an investment from Point Break Capital, which valued the company at over $12.7 million.

Jumeirah Group said Wednesday it hired Katerina Giannouka, a top executive for Radisson in Asia, as its new CEO. The announcement was made by Dubai Holding, a global investment firm owned by the ruler of Dubai for which Jumeirah is part of.

Giannouka, who will be taking over as the CEO in December, succeeds Jose Silva as the fifth CEO of Jumeirah. She joins Jumeirah from Radisson Hotel Group, where she serves as president of Asia Pacific. Prior to this, she led the Asia-Pacific and China development team of Rosewood Hotels & Resorts.

In an internal email sent last week, Silva had announced his decision to step down. Chief operating officer Thomas Meier had been named the interim CEO.

“Given Katerina’s (Giannouka) impressive track record as a transformative business leader, as well as her luxury hospitality background and drive to create resilient teams and culture, I am confident that she will build on Jumeirah’s incredible success story and lead the business to new levels of sustainable and accelerated growth across the world,” Amit Kaushal, Group CEO of Dubai Holding said in a press statement.

Giannouka said she’s keen to unlock the potential of the Jumeirah brand and sustainably secure its position on the world stage as the “top luxury Emirati hospitality brand recognised and sought-after globally.”

Jumeirah Group, a global luxury hotel company, which operates a 6,500-key portfolio of 25 luxury properties across the Middle East, Europe and Asia, opened new resorts in Bali and Muscat earlier this year. The group will also be opening more properties in Bahrain and Saudi Arabia in the coming months.

Abu Dhabi-based Etihad Airways CEO Tony Douglas has agreed to join RIA — Saudi Arabia’s newest airline, according to reports.

It had been earlier reported that RIA, the multi-billion-dollar international carrier, had approached Douglas for the top job. Douglas has apparently agreed and other senior Etihad executives may follow him, according to Arabian Business.

Global consulting firm Korn Ferry has been tasked with the job to find a replacement for Douglas, the publication added quoting sources.

The head hunting firm is said to be in preliminary talks with three senior aviation names for the top job at Etihad, even though employment offers haven’t yet been made, according to Bloomberg.   

Douglas has been leading Etihad since 2018. He had also served as the CEO of Abu Dhabi Airports Company and Abu Dhabi Ports Company, prior to which he was the chief operating officer and group chief executive designate of UK’s largest privately-owned construction company Laing O’Rourke.

Under Douglas’ leadership, Etihad had reported a record-breaking core operating profit of $296 million for the first half of 2022, despite fuel costs increasing by almost 60 percent compared to the same period in 2021.

“Etihad is emerging from the pandemic stronger than ever, with a world-class fleet, an unmatched customer proposition and sustainability woven into every fibre of our business,” Douglas had said while announcing the financial results.

As Saudi Arabia pivots from its oil-based economy, the tourism sector has been a strong focus for the country that was closed to tourists till 2019.

The introduction of tourist visas in September 2019, was followed by the introduction of electronic tourist visas this month for residents of Gulf Cooperation Council (GCC) countries.

With an ambitious goal to reach 100 million tourists per year by 2030, the kingdom has been hard working to expanding its international air connectivity. 

Riyadh-based RIA will be the second airline for the kingdom, national carrier Saudia operates from Jeddah. Saudi Arabia’s Public Investment Fund has reportedly invested $30 billion to get the airline off the ground. 

Saudi Arabia’s Public Investment Fund has proposed to acquire a 30 percent stake in Riyadh-based travel firm Almosafer — a subsidiary of Seera Group — for $412 million.

As part of the pact, Seera’s destination management company — Discover Saudi and its Hajj and Umrah travel operator — Mawasim will fall under Almosafer.

The Seera Group, in a statement to the Saudi Stock Exchange where it is listed, stated that the capital infusion would be used to scale its inbound, outbound, religious and domestic tourism operations.

The company said this would help to strengthen its credentials as a “national champion of travel and tourism services in Saudi Arabia.”

Almosafer recorded the best quarter in its history for consumer travel bookings for the quarter ending June 30, 2022 exceeding pre-pandemic levels in June 2019 by 27 percent.

The travel company reported a 89 percent growth in gross booking value to $346 million in the second quarter, up from $240 million in the second quarter of 2021. Almosafer’s consumer travel unit achieved its highest ever quarterly gross booking value registering an increase of 175 percent compared to the same period last year.

The company had mentioned in its earnings that Almosafer’s consumer travel segment is on track to achieve $1 billion gross booking value by the end of 2022. 

The Public Investment Fund plays a pivotal role in realizing Vision 2030, Saudi Arabia’s economic transformation program, as it strategises to diversify the national economy and reduce the reliance on oil.

As it seeks to diversify is portfolio, the Public Investment Fund, which manages around $620 billion in assets, had earlier invested $464 million in Google’s parent company Alphabet, around $474 million in Microsoft, $507 million in Zoom and $373 million in Booking Holdings.

Last month, the sovereign wealth fund along with the London-based Cain International announced an investment of $900 million in the Swiss hospitality brand — Aman Group.

Saudi Arabia’s government plans to call its new multi-billion-dollar international airline RIA, according to reports.

The plan is for it to be a premium global superconnector, like Emirates, Qatar and Etihad, as the kingdom continues its ambitious Vision 2030 tourism plan.

It wants to increase the number of air routes from about 100 to 250.

RIA will become Saudi’s second national carrier, based out of Riyadh, with Saudia, which operates from Jeddah, focusing on religious traffic bringing pilgrims to the country’s holy sites, especially during the Hajj pilgrimage.

Budget carriers Flynas and Flyadeal would then concentrate on low-cost domestic and regional travel and near-international routes. It remains unclear if any of the three existing airlines would feed traffic to the new airline.

The kingdom has been working on the launch for the past 12 months, with the new venture backed by Saudi Arabia’s Public Investment Fund, the report added.

Saudi Arabia is also making it easier for millions of tourists to enter the kingdom by streamlining and relaxing its visa options for residents from multiple countries. Overall the country wants to target 30 million international transit passengers by 2030, compared to under 4 million currently.

Europe’s Wizz Air will also land in Saudi Arabia this December.