Saudi Arabia will provide up to two billion riyals (533 million dollars) to finance 113 tourism projects across the country this year, aiming to develop the tourism sector as part of Crown Prince Mohammed bin Salman's plan to diversify the economy. According to a statement, the Tourism Development Fund and Riyad Bank will provide funding starting from one million riyals, increasing up to 100 million riyals for larger projects.
**Funding Mechanisms**
Today, the Tourism Development Fund and Riyad Bank launched the "Tourism Partners" program, the first of its kind in which the public and private sectors collaborate to develop tourism facilities and activities across the Kingdom, with an allocation of two billion riyals to finance 113 projects in seven tourist destinations, which will be worked on during the current year 2021.
This program aligns with the Kingdom's direction to strengthen partnerships between the government and private sectors through the "Partner" initiative launched by Crown Prince Mohammed bin Salman bin Abdulaziz.
The "Tourism Partners" program includes three financing options to serve private sector facilities of various sizes, with funding ranging from one million riyals to more than 100 million riyals for specialized projects. The financing includes direct funding from the fund, joint funding with private banks including Riyad Bank, as well as offering guarantees for credit facilities up to 90%.
It is noteworthy that the Tourism Development Fund is a key driver for the sector's growth in Saudi Arabia, contributing to achieving the Kingdom's vision to elevate tourism's contribution to more than 10% of GDP and creating one million jobs by 2030.
