Saudi Arabia’s Public Investment Fund has launched a hotel management company aimed at developing the kingdom’s home-grown hospitality brands, as the Arab nation seeks to expand its position as a global tourism hub.
The move aligns with Saudi Arabia’s National Tourism Strategy, which aims to attract 150 million visitors and raise tourism’s contribution to 10 per cent of the gross domestic product by 2030.
The entity, Called Adeera, is fully owned by PIF and it will oversee the development and management of Saudi hotel brands, offering a range of hospitality options from mid-range to ultra-luxury.
The company will also support the local private sector by creating partnerships with hotel developers and launching skills training programmes to grow employment for Saudi citizens in the tourism sector.
Khalid Johar, co-head of the local real estate portfolio at PIF, said the launch has come at a “pivotal time” and Adeera will introduce distinct brands rooted in Saudi culture and traditions, setting them apart in a growing market already home to major international hotel chains.
“The company has the opportunity to grow the sector by introducing new hotel brands as the country is establishing itself as a major tourism destination. Adeera’s unique focus on Saudi culture and traditions will provide a distinctive edge,” Mr Johar said.
co-head of local real estate portfolio at PIF
The establishment of Adeera underscores PIF’s continuing efforts to develop Saudi Arabia's strategic tourism sector, driving economic growth and diversification.
Saudi Arabia, the Arab world’s largest economy, aims to diversify its economy away from oil as part of its Vision 2030 initiative.
Its PIF is one of the world’s largest sovereign wealth funds, with over $930 billion of assets under management. In August, the PIF said its assets under management increased 29 per cent to 2.87 trillion riyals last year as it solidified its Saudi holdings and diversified its international portfolio of assets.
The annualised returns for the sovereign fund since 2017 rose to 8.7 per cent last year, up from 8 per cent in 2022, the fund said in its annual report.
The PIF's portfolio includes several strategic investments to strengthen Saudi tourism and grow city economies across the kingdom.
These include the Soudah Development, which will create a year-round luxury mountain tourism resort in the Aseer region; Boutique Group, which specialises in developing historical palaces into luxury boutique hotels; the tourism investment company Asfar; and Saudi Downtown Company, which aims to establish and develop urban centres across Saudi Arabia.
In December last year, PIF also announced a company to develop tourism projects around cities that have attractive natural and farmed landscapes. Specialised in agritourism and eco-tourism, Dan Company is expected to contribute about $1.6 billion to Saudi Arabia’s non-oil economy by 2030, according to PIF.
