A new mountain resort is set to rise on Saudi Arabia’s west coast as the Vision 2030 project rollout continues unabated
Trojena is part of the sprawling NEOM smart city development, which will support the kingdom’s nascent tourism sector, taking advantage of the north-western region’s breathtaking mountainous landscape.
A key feature of Trojena will be outdoor skiing, making it the only area in the Gulf region offering such entertainment.
“Amateurs and professionals alike will be able to enjoy the many ski runs of various difficulties with an array of contrasting and breathtaking views. The blue waters of the Red Sea, beauty of the NEOM mountain ranges and the golden desert sand dunes will provide skiers a first-of-its-kind experience that combines these diverse environments with fun-filled and adventurous moments,” according to the project developer NEOM.
The new year-round tourist destination will consist of various facilities such as a ski village, ultra-luxury family and wellness resorts, retail stores and restaurants, an interactive nature reserve, as well as sports amenities dedicated to skiing, water sports, and mountain biking. The project is set for completion by 2026.
PIF EXPANDS GLOBAL FOOTPRINT
In another move to expand Saudi Arabia’s global footprint, the Public Investment Fund (PIF) said it is launching three new subsidiary companies with offices in London, New York, and Hong Kong.
The sovereign wealth fund’s international expansion is part of its Strategy 2021-2025, which aims to grow its assets under management to USD 1.07 trillion by the end of 2025, while continuing to create new sectors, companies, and jobs.
In another vital move in achieving its 2030 goals, Crown Prince Mohammed Bin Salman Al Saud, deputy prime minister, chairman of the Council of Economic and Development Affairs, and chairman of the board of directors of the PIF, has announced the transfer of 4% of Saudi Arabian Oil Company's (Aramco) shares to PIF.
“The kingdom remains committed to continuing the implementation of its financial and economic reforms and expanding the investment opportunities available to public development funds and the private sector to enable the realisation of Vision 2030 targets,” according to a PIF statement.
The PIF’s 2025 and overarching 2030 plans have been lauded by international credit ratings agencies, with Moody’s Investors Service and Fitch Ratings awarding investment grade ratings to the fund in February
Global credit rating agency Moody's assigned PIF with a first-time issuer rating of A1 and a scorecard indicated rating of Aa2, with a stable outlook, while Fitch assigned PIF with a long-term issuer rating of A, with a stable outlook.
Indeed, Moody's singled out the strategic importance of PIF to the kingdom as one of the main vehicles for achieving the Vision 2030 objectives. The rating agency also lauded the PIF’s total assets of SAR 1.24 trillion as of December 2020, underpinned by a steady dividend income stream and a high-quality investment portfolio; sector diversification, with investments across several different sectors both locally and internationally; very strong financial profile with very low leverage and very high interest coverage; and an excellent liquidity profile.
PROJECTS RAMP UP
The 2030 targets are ambitious and are already creating a flurry of construction activity in the Saudi economy. Research house MEED estimates the 2030 goals entail projects valued at USD 1.18 trillion by 2030, which suggests authorities must place an estimated USD 569 billion of construction contracts by 2025. It will require a strong public-private partnership to realise the country’s goals.
“The move to deliver projects through partnerships between government sponsors and contractors will entice international players back into the market,” MEED noted. “Riyadh has shown that it is ready to innovate. Legislative updates, such as limiting government contracts to Saudi-headquartered companies and the newly launched public-private partnership law, are significant changes in the market.
The kingdom has already blazed a trail as it ticks off the diverse range of large and small 2030 goals. These include launching the country’s first cinema; planning to undertake the world’s largest reforestation programme; raising the number of entertainment venues in the kingdom to 277; organising more than 2,000 entertainment, musical, cultural, and sports events, which were attended by 46 million people.
The country is now pursuing large-scale initiatives, such as the National Industrial Development and Logistics Program, Financial Sector Development Program, Housing Program, and Privatisation Program.
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