Saudi- SR100m special fund to develop tourism in EP

(MENAFN- Arab News) The Investor for Securities Company is launching the first tourism fund with a capital of SR100 million at Dana Bay Resort in Half Moon Bay of the Eastern Province (EP).
The company has sold a 42000 sq m area to the Investor for Securities Company in order to build and develop 20 chalets and set up a special tourism fund said Abdul Mohsen Al-Rashid chairman of Dana Bay Tourism Company.
Abdul Lateef Al-Bunaian Saudi Commission for Tourism and Antiquities' (SCTA) director general for the EP said: 'The company is keen to cooperate with national companies specialized in the development of tourism projects to build chalets and develop tourism facilities at Dana Bay Resort.'
This project is aimed at increasing the flow of tourists to the EP he said adding that Dana Bay Resort includes a number of hotels resorts entertainment projects chalets and markets.
Al-Rashid stated that the project requires an investment up to SR4 billion.
He said the company would cooperate with other national and Gulf companies to float similar tourism funds.
Al-Bunaian said: 'The loans granted by the Cabinet have contributed significantly to tourism development and draw national investors to the Saudi market.'
There are 17 licensed tourist resorts in the EP; the province needs more than 30 tourist resorts to attract visitors who prefer to have their summer homes at resorts he said.
'Investor Fund and Emerald Beach Projects reinforce tourism in the EP' Al-Bunian emphasized adding that the average annual growth of the Saudi tourism sector was 7 percent during the past eight years and the total tourism expenditure is expected to reach SR 100 billion by 2019.
Asim Abu Allian CEO of Seyada LLC said: 'The fund is the first tourism fund in the EP and the third in the Kingdom.'
This is the first cooperation between Seyada and Dana Bay and will be followed by several financial partnerships to launch some tourism funds for developing other projects within the resort.
Dana Bay Resort offers integrated facilities including restaurants cafes club public parks and security services he said adding that the implementation period is 30 months.
Khaled Al-Muhanna vice CEO of Seyada LLC said: 'Work on the fund started in the beginning of this year and the architectural designs began in March.'
Seyada signed a contract with an American engineering company to create designs for the project while construction works will commence in the last quarter of this year he added.
Bassam Bode CEO and MD of Jinan Company said: 'The agreement is one of a set of conventions with which the company aims to attract investors to develop hotel and tourism projects to create an integrated tourism city.'
He pointed out that the company recently started developing the project's infrastructure and services.
Currently it aims to establish a beach resort containing 110 villas with private beaches.
The project is expected to be completed at the end of next year along with an aqua park on an area of 15000 sqm.
The official said that the company is currently working on a design for a hotel with 180 rooms and 45 villas on the island located at the center of the project besides many entertainment projects so as to make Dana Bay an integrated tourism city and the first tourist destination in the EP.