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The Red Sea Development Company commences hotel construction with award of two key contracts

Hotel construction is now underway following the award of two major contracts for hotel development at its Southern Dunes site and Ummahat Al Shaykh Island

The Red Sea Development Company (TRSDC), the developer behind the world’s most ambitious regenerative tourism project, has awarded contracts to Saudi company Al Bawani and Swiss firm Blumer Lehmann to support the development plans and structural work of its luxury hotels and resorts.

The two companies will play pivotal roles in the construction of hotels across The Red Sea Project, with Al Bawani responsible for civil and structural works across 40 hotel villas on the Southern Dunes site, and Blumer Lehmann responsible for timber construction planning and fabrication as well as supply works for a hotel situated on Ummahat Al Shaykh Island.

“The Red Sea Development Company has made significant progress in terms of the design and construction of key infrastructure to enable the development of hotel assets,” said John Pagano, CEO of TRSDC. 

“It is exciting to award these contracts, which signify the start of a new phase for us as we move into the build of our stunning resorts both inland and on one of our key islands. We feel confident that Al Bawani and Blumer Lehmann will help turn our vision into a reality.”

Southern Dunes
Al Bawani has been awarded the first contract for the Southern Dunes site, which involves civil and structural works for 40 hotel villas as well as utility works and site-wide roads. The roads are an integral part of development plans for the project as they will interlink the hotel villas, restaurant and central hotel buildings.

The Saudi-based company will also be responsible for the earthworks and stabilization of each of the villas, along with their structures and underground utilities connections – an essential part of the development plans. Al Bawani’s scope also includes the construction of the infrastructure networks for the Southern Dunes resort, such as sewage, potable water, telecommunications and landscape lighting.

As part of the contract, Al Bawani will establish staff accommodation on site near the Southern Dunes development. This will eventually house 700 employees and will include a host of high-quality amenities. The close proximity of the housing to the site will substantially reduce workers’ travel time and help improve productivity.  

Fakher Alshawaf, CEO at Al Bawani, said: “This award represents a first for the Southern Dunes and is an essential part of the development plans for The Red Sea Project. We’re honored to be one of the first companies to work across this beautiful site and are pleased to play our role in helping to open up this destination and our country to the rest of the world.” 

Ummahat Al Shaykh Island
TRSDC has also appointed leading Swiss timber construction company Blumer Lehmann for the timber construction planning and fabrication as well as supply works for a resort designed by Kengo Kuma and located on Ummahat Al Shaykh Island.

This award involves the design, off-site manufacturing in Switzerland, and supply of all engineered timber material for the entire hotel, overwater and beach villas, spa and fitness building, restaurants, and the arrival building. During the installation stage, Blumer Lehmann will provide the technical support and supervision needed for smooth installation on-site.

Katharina Lehmann, owner and CEO of Blumer Lehmann, said: “We share The Red Sea Development Company’s values in preserving the natural environment. Our off-site manufacturing methods will help to reduce waste, as well as the human impact of construction activities on-site, such as noise, ground disturbance and vehicle movements. The Red Sea Project is a destination like no other, and we’re proud to be contributing to such an ambitious project.”

Vision to reality
Both awards reflect the remarkable progress being made at the destination. The Red Sea Project has already passed significant milestones and work is on track to welcome the first guests by the end of 2022, when the international airport and the first four hotels will open. The remaining 12 hotels planned for phase one will open in 2023.

Upon completion in 2030, the destination will comprise 50 resorts, offering up to 8,000 hotel rooms and around 1,300 residential properties across 22 islands and six inland sites. The destination will also include luxury marinas, golf courses, entertainment and leisure facilities.

The Red Sea Development Company (TRSDC - www.theredsea.sa) is a closed joint-stock company wholly owned by the Public Investment Fund (PIF) of Saudi Arabia. TRSDC was established to drive the development of The Red Sea Project, a luxury, regenerative tourism destination that will set new standards in sustainable development and position Saudi Arabia on the global tourism map.

The project is being developed over a vast 28,000 km2 area on Saudi Arabia’s west coast and includes a spectacular archipelago of more than 90 pristine islands. The destination also features sweeping desert dunes, mountain canyons, dormant volcanoes, and ancient cultural and heritage sites. The destination is designed to include hotels, residential properties, leisure, commercial and entertainment amenities, as well as supporting infrastructure that emphasizes renewable energy and water conservation and re-use.

Activity for the first phase of the development is well underway and is on track to be completed by the end of 2023. The project has surpassed significant milestones, with over 500 contracts signed to date, worth some SAR 15 bn ($4bn).

The 100-hectare Landscape Nursery, which will provide more than 15 million plants for the destination, is now fully operational. There are more than 5,000 workers currently on-site and more than 70km of the planned 80km of new roads are now complete. The Construction Village, which is set to house 10,000 workers, will be fully open by the end of Q1 this year and development is progressing well at the Coastal Village, which will be home to around 14,000 people who will work at the destination.

The Red Sea Project
The Red Sea Development Company