Red Sea Global to fund new destinations through residential sales proceeds: Group CFO

Special RSG’s Group Chief Financial Officer Martin Greenslade. AN photo by Loai El-Kellawy
RSG’s Group Chief Financial Officer Martin Greenslade. AN photo by Loai El-Kellawy
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Updated 14 February 2025
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Red Sea Global to fund new destinations through residential sales proceeds: Group CFO

Red Sea Global to fund new destinations through residential sales proceeds: Group CFO

RIYADH: Saudi Arabia’s Red Sea Global is leveraging the proceeds from its residential sales to finance upcoming projects along its coastal properties, according to the company’s top executive.

In an interview with Arab News during the Public Investment Fund’s Private Sector Forum, RSG’s Group Chief Financial Officer Martin Greenslade disclosed that the company intends to sell around 300 residences in its Red Sea development, along with a similar number at its wellness-focused destination, AMAALA.

“Those residences are available to anyone to purchase, both Saudis and international buyers. We’ve already sold some of them, some of those have been reserved, and the pricing for that is anywhere up from SR5 million ($1.3 million) upward. There’s something to suit every taste and every budget,” Greenslade said.

The CFO added that revenue from these sales serves as a critical source of funding for RSG’s long-term plans. “This external investment, as people buy those residences, is an important driver of funding for us,” he said.

Infrastructure development

RSG has already invested more than $20 billion into its flagship projects, with an equal or greater amount expected to be invested in future developments, according to the company’s top official.

Initial funding for infrastructure was provided by the Saudi government and the sovereign wealth fund, with additional support from bank loans and public-private partnerships for key utilities, such as solar energy and water treatment.

To finance the Red Sea project, RSG secured a SR14 billion green financing facility in 2021, which has been fully utilized to support the final stages of development. Greenslade emphasized that future funding will continue to come from a combination of residential sales, bank loans, and external investments.

“We are actively exploring co-investment opportunities, similar to our partnerships for the Four Seasons and Jumeirah hotels, where we have sold 50 percent stakes to external investors,” he noted.

Growing tourism and occupancy targets

Despite limited international flight options, with service currently only available from Dubai, RSG has seen strong demand from domestic and Gulf Cooperation Council tourists.

Five hotels have already opened, with 11 more scheduled to launch this year on Shura, the main hub island of The Red Sea development.

Although the company has not released specific occupancy figures, Greenslade expects the numbers to align with global luxury destinations over time, aiming to reach the 70 percent occupancy benchmark.

“The full launch of the destination is planned for the end of 2025, once all hotels are operational,” he explained. “We anticipate stronger occupancy rates as international connectivity improves, given that global travelers typically stay longer.”

Investment opportunities

“We’ve led to over SR20 billion of contracts, 70 percent of that has gone to Saudi based organizations,” he said.

The company is inviting businesses to establish operations in the Red Sea area, spanning retail, hospitality, and entertainment sectors.

Entrepreneurs with unique tourism-related offerings are encouraged to invest, though Greenslade underlined that quality control and operational expertise are key criteria for entry.

“Yes, we’re looking for entrepreneurs, we’re looking for people who want to bring, who believe they have, something to bring to the tourists that will be coming to our destination,” he said.

“We have created our own seaplane and diving companies due to initial service gaps, but we are actively training and hiring local talent, with over 500 graduates from our vocational programs already employed,” he added.

Environmental sustainability is a core focus of RSG’s strategy. The company plans to plant and restore 50 million mangroves over the next five years and has mapped 180 coral reefs using artificial intelligence to ensure ecological preservation.

The Red Sea destination is entirely solar-powered, with electric vehicles and water sports helping to maintain a carbon-neutral footprint.

Moving forward, RSG will continue to incorporate green financing into its funding strategy, further reinforcing its commitment to regenerative tourism.

“The savings from our solar farms alone will prevent over a million tonnes of carbon dioxide emissions annually,” Greenslade emphasized.

 


Lebanon finalizes 22 deals with Saudi Arabia ahead of high-level visit 

Lebanon finalizes 22 deals with Saudi Arabia ahead of high-level visit 
Updated 5 sec ago
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Lebanon finalizes 22 deals with Saudi Arabia ahead of high-level visit 

Lebanon finalizes 22 deals with Saudi Arabia ahead of high-level visit 

RIYADH: Lebanon has finalized 22 cooperation agreements with Saudi Arabia, setting the stage for a high-level visit next month to strengthen economic ties. 

The delegation could be led by President Joseph Aoun, Prime Minister Nawaf Salam, or both, according to Lebanese Deputy Prime Minister Tarek Mitri in an interview with Asharq. 

This comes as Saudi Crown Prince Mohammed bin Salman hosted President Aoun at the Royal Court in Al-Yamamah Palace on March 3 — Aoun’s first foreign visit since taking office — where they discussed Lebanon’s ongoing crisis and regional developments. 

The agreements, covering sectors from agriculture to intellectual property, are seen as crucial to securing broader international aid for Lebanon’s struggling economy. 

“This is a legitimate approach, and we must earn the trust of Arab nations and the international community,” Mitri said, emphasizing that Saudi Arabia’s support is vital for unlocking further international aid. He confirmed that the 22 agreements are fully drafted and ready for signing. 

On his arrival, Aoun had expressed hope that his talks with the crown prince would pave the way for a follow-up visit to sign agreements aimed at strengthening cooperation between the two nations. 

The deals cover a wide range of sectors, including intellectual property, consumer protection, and environmental management, as well as agriculture and water resources, Rabih El-Amine, chairman of the Lebanese Executives Council, told Arab News earlier this month. 

El-Amine also pointed to agreements involving the Ministry of Information, the General Directorate of Civil Aviation, and Banque du Liban. 

Mitri further revealed that Lebanon is working on an independent fund — separate from government institutions handling refugee affairs — in partnership with international organizations to oversee post-war reconstruction efforts. This move aims to boost credibility with donors, especially in the wake of the recent Hezbollah-Israeli conflict. 

A World Bank report commissioned by the Lebanese government estimates the country needs roughly $11 billion for recovery and reconstruction. The report assessed damage across 10 key sectors, projecting infrastructure repairs at $3 billion to $5 billion in public sector funding, while housing, trade, industry, and tourism would require $6 billion to $8 billion in private investments. 

Mitri also noted that France has expressed willingness to host a conference to support Lebanon’s recovery. French officials have proposed preparatory meetings or merging them into a single event, though no date has been set. The conference would prioritize humanitarian aid and reconstruction, while a separate investment-focused event aims to attract international figures. 


Qatar to supply gas to Syria with US nod: sources

Qatar to supply gas to Syria with US nod: sources
Updated 14 min 42 sec ago
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Qatar to supply gas to Syria with US nod: sources

Qatar to supply gas to Syria with US nod: sources

BEIRUT: Qatar is set to begin supplying Syria with gas via Jordan to boost the nation’s meager power supply, three people familiar with the matter said, in a move that a US official said had Washington’s approval.


PIF-backed Scopely acquires Pokemon GO maker for $3.5bn

PIF-backed Scopely acquires Pokemon GO maker for $3.5bn
Updated 16 min 7 sec ago
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PIF-backed Scopely acquires Pokemon GO maker for $3.5bn

PIF-backed Scopely acquires Pokemon GO maker for $3.5bn

RIYADH: Scopely, a US-based firm backed by Saudi Arabia’s Public Investment Fund, has signed a deal worth $3.5 billion to acquire the video game division of Niantic Labs.

In a press statement, Scopely said that the team employed to make games such as Pokemon GO, Monster Hunter Now and Pikmin Bloom are included in the acquisition. 

This takeover aligns with the Kingdom’s ambitions to establish itself as a global gaming destination, with a national strategy aiming to ensure that the sector will contribute $13 billion to gross domestic product by 2030. 

In April 2023, Savvy Games Group, wholly owned by PIF, acquired Scopely for $4.9 billion.

“Few games in the world have delivered the scale and longevity of ‘Pokemon GO,’ which reached over 100 million players just last year. The experience also stands apart for its unique ability to foster in-person connections, with Pokemon GO live events attracting millions of attendees,” said Tim O’Brien, chief revenue officer and board member of Scopely. 

Despite being launched nearly a decade ago, Pokemon GO is still one of the most popular games in the world, with over 20 million weekly active players. 

O’Brien added: “After spending time with the Niantic team, it quickly became clear that this organization shares our inclination to create industry-leading outcomes and exceptional player experiences. We look forward to a bright future ahead.” 

The games business of Niantic Labs generated over $1 billion in revenue in 2024, according to the statement. 

In a separate release, the US-based firm said it would distribute an extra $350 million to its equity holders under the deal, yielding a total value of approximately $3.85 billion for the company’s shareholders. 

Niantic added that it will also spin off its geospatial AI business into a new firm named Niantic Spatial, under the leadership of its founder and CEO, John Hanke.

The company will be funded with $250 million of capital, including $200 million from Niantic’s balance sheet and a $50 million investment from Scopely. 

“I’m confident our games will thrive with Scopely. I’ve often talked about building ‘forever games,’ and I believe they will continue to be just that,” Hanke wrote on his LinkedIn page. 

Since the launch of Vision 2030, Saudi Arabia has been actively promoting the gaming industry, with PIF already holding stakes in major companies such as Nintendo, Electronic Arts, and Take-Two Interactive.

In 2024, the Kingdom also hosted the eSports World Cup, which carried a prize pool of over $60 million. 


IEA sees global oil market surplus for 2025 as demand disappoints

IEA sees global oil market surplus for 2025 as demand disappoints
Updated 31 min 45 sec ago
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IEA sees global oil market surplus for 2025 as demand disappoints

IEA sees global oil market surplus for 2025 as demand disappoints

LONDON: Global oil supply could exceed demand by around 600,000 barrels per day this year, the International Energy Agency said in a monthly oil market report on Thursday, after a downward revision to its 2025 demand growth forecast.

That surplus could grow by a further 400,000 bpd if OPEC+ extends its unwinding of output cuts, and fails to rein in overproduction against quotas, the Paris-based agency said.

The IEA revised down its 2025 oil demand growth forecast by 70,000 bpd to around 1 million bpd, with growth driven largely by Asia, specifically China’s petrochemical industry.

It added that demand for the last quarter of 2024 and the first quarter of this year had come in below expectations amid “an unusually uncertain macroeconomic climate.”

“New US tariffs, combined with escalating retaliatory measures, tilted macro risks to the downside. Recent oil demand data have underwhelmed, and growth estimates for 4Q24 and 1Q25 have been marginally downgraded,” said the agency. 
 


Oil Updates — crude slips amid macroeconomic concerns despite firm demand expectations

Oil Updates — crude slips amid macroeconomic concerns despite firm demand expectations
Updated 13 March 2025
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Oil Updates — crude slips amid macroeconomic concerns despite firm demand expectations

Oil Updates — crude slips amid macroeconomic concerns despite firm demand expectations

LONDON: Oil prices slipped on Thursday after a surge in the previous session on a larger-than-expected draw in US gasoline stocks, as markets weighed macroeconomic concerns against firm near-term demand.

Brent futures fell 5 cents to $70.9 a barrel by 7:26 a.m. Saudi time, while US West Texas Intermediate crude futures shed 10 cents to $67.58 a barrel.

Both benchmarks rallied about 2 percent on Wednesday as US government data showed tighter-than-expected oil and fuel inventories.

US gasoline inventories fell by 5.7 million barrels, more than the 1.9 million-barrel draw expected by analysts, while distillate stocks also dropped more than anticipated — despite gains in crude stocks.

“Declining US gasoline inventories raised expectations for a seasonal demand increase in spring, but concerns about the global economic impact of tariff wars weighed on the market,” said Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment.

“With strong and weak factors progressing simultaneously, it has become difficult for the market to lean decisively in one direction or the other,” he added.

Donald Trump threatened on Wednesday to escalate a global trade war with further tariffs on EU goods, as major US trading partners said they would retaliate for trade barriers already erected by the US president.

Trump’s hyper-focus on tariffs has rattled investors, consumers and business confidence and raised US recession fears.

Meanwhile, the Organization of the Petroleum Exporting Countries said on Wednesday that Kazakhstan led a sizeable jump in February crude output by the wider OPEC+, highlighting a challenge for the producer group in enforcing adherence to agreed output targets.

Worries about fumbling jet fuel demand weighed further on markets, JP Morgan analysts said, adding that US Transportation Security Administration data showed passenger volumes for March have decreased by 5 percent year-over-year, following stagnant traffic in February.

However, firm demand expectations limited overall market weakness.

Signs of robust US demand and Ukraine’s deployment of 377 drones targeting Russian energy infrastructure and military installations supported prices, said JP Morgan analysts in a client note.

“As of March 11, global oil demand averaged 102.2 million barrels per day, expanding 1.7 million barrels per day year-over-year and exceeding our projected increase for the month by 60,000 barrels per day,” they added.