Yesterday, the Tourism Development Fund, in partnership with Riyadh Bank, signed a financing agreement for the “Knowledge City Forum” project, with the Knowledge Economic City Company, as part of the Tourism Development Fund’s efforts to advance the development of qualitative tourism destinations in the Kingdom. The project will be built on an area of 68 thousand square meters, with a total value of 1,303 billion riyals, making it one of the largest qualitative tourism projects in Medina.
The mixed-use project will include a 5-star hotel that will be operated by a prestigious international brand in addition to many tourist and entertainment facilities, shopping centers, restaurants and cafes, which will enrich the tourist experience in the region.
The CEO of the Tourism Development Fund, Qusay bin Abdullah Al-Fakhry, explained that the volume of financing provided by the Fund for the City of Knowledge Forum project is 391 million riyals, indicating that the bank provided financing of the same value within the framework of the partnership agreement signed by the fund in late 2020 with the bank and many banks Other to finance tourism projects.
Al-Fakhi said: “The tourism sector in the Kingdom has started reaping the fruits of the fund’s partnerships with Saudi banks, with the aim of finding financing solutions for investors that will accelerate the development of distinguished tourism projects in various regions of the Kingdom, thus achieving the objectives of the National Tourism Strategy, which aims to raise the tourism sector’s contribution to 10% of the GDP. And to generate one million total jobs by the year 2030. ” He indicated that the financing support provided by the fund for such qualitative projects attracts the interest of the most prominent investors and operators in the field of hospitality from around the world, which indirectly opens the way for more investments in the future, pointing to the pivotal role of the fund as an investor partner in the tourism sector within the tourism development system that includes The Ministry, the Saudi Tourism Authority and the Tourism Development Board, where the Tourism Development Fund works in integration and coordination with the system bodies to enable companies of all sizes and entrepreneurs to invest in rewarding tourism projects.
Al-Fakheri stated that the fund’s tasks are not limited to financing specific projects through the capital allocated to it, but rather that it employs its partnerships with banks to provide appropriate financing solutions to investors in large projects. It also provides financial and advisory support to small and medium-sized companies and entrepreneurs, in addition to the strategic role of the fund in highlighting Investment opportunities in various regions of the Kingdom and linking investors with project developers and global operators with the aim of increasing their contributions to the tourism renaissance in the Kingdom, benefiting that the advantages offered by the fund include reducing the level of risk for the investor and lenders by ensuring a certain level of revenue, as well as providing financing at competitive costs, speeding completion of transactions and facilitating Guarantees on the investor to obtain financing, and the fund works in an integrated manner with the private sector to meet the needs of the sector and work together to develop appropriate solutions and projects.
He pointed out that the Kingdom today offers the best investment opportunities in the tourism sector, where all the ingredients for a successful investment are available, starting from culture, heritage, geographical nature and various tourism options, through a safe and orderly investment environment, and ending with distinguished support for the investor that reduces risk and increases the feasibility of investment.
The “City of Knowledge Junction” project is located less than 6 km from the Prophet’s Mosque. The project is also easily accessible via the Haramain Express Train Station located in the City of Knowledge, which in turn connects Medina with Makkah within only 55 minutes, passing through each of King Abdullah Economic City. And Jeddah Governorate.
This qualitative project will benefit from the status of the enlightened city in the Islamic world, in addition to being a global destination for tourism and heritage, especially as it ranked 23 in the list of the 100 most important tourist cities in the world with nearly 9 million tourists, according to the latest report before the pandemic from the “Euromonitor International”. Medina is also an ideal destination for tourism investment due to its proximity to many impressive tourist sites, including Al-Ula Governorate.