The Tourism Development Fund (TDF) has signed a memorandum of understanding (MoU) with Emaar, The Economic City (EEC), the master developer of King Abdullah Economic City (KAEC), marking a significant step toward accelerating high-quality coastal tourism development along Saudi Arabia’s Red Sea coast.
The agreement underscores TDF’s strategic role in enabling sustainable tourism projects and strengthening Saudi Arabia’s position as a global tourism and investment destination. Through this partnership, TDF will work closely with EEC to support the development of integrated tourism offerings within KAEC, with a focus on attracting international hospitality brands and long-term private sector investment.
King Abdullah Economic City, one of the Kingdom’s flagship giga-projects, is uniquely positioned along the Red Sea with extensive coastline, modern infrastructure, and proximity to major transport networks. The MoU aims to leverage these advantages to create world-class coastal tourism assets, including resorts, mixed-use developments, leisure facilities, and supporting hospitality infrastructure.
Officials said the collaboration aligns with Saudi Vision 2030’s objectives to diversify the national economy, increase tourism’s contribution to GDP, and create new employment opportunities for Saudi nationals. By facilitating access to financing solutions, advisory support, and development enablement, TDF seeks to reduce investment barriers and accelerate project delivery within KAEC.
The partnership also reflects growing investor confidence in Saudi Arabia’s tourism sector, particularly in Red Sea destinations that combine natural beauty with strong master planning and sustainability principles. KAEC is expected to play a pivotal role in expanding the Kingdom’s coastal tourism portfolio while offering investors a fully integrated ecosystem for hospitality, residential, logistics, and lifestyle developments.
As global travel demand continues to rebound, the MoU positions KAEC to emerge as a premier Red Sea destination, reinforcing Saudi Arabia’s ambition to become one of the world’s leading tourism hubs.
