Global law firm Ashurst has advised Al Mutlaq Group, through its subsidiary Almutlaq Real Estate Investment Co, on its entry into a joint venture agreement with The Red Sea Development Company.
Under the agreement, valued at over SAR 1.5 billion, the two companies will develop the Jumeirah Red Sea, a 159-key luxury resort situated on The Red Sea destination’s hub island, Shura, currently under construction and expected to open in early 2024. Shura Island forms part of the first phase of development of the Red Sea Project, and will comprise 11 luxury, premium and lifestyle hotels and resorts, residential units, a championship golf course, 118 berth marina, and a comprehensive retail, dining, and entertainment offering.
The Red Sea Project is a large scale tourism and hospitality development project located on the Red Sea in the Kingdom of Saudi Arabia. It will include hotels, residential properties, leisure facilities and entertainment ventures over a 28,000km2 site encompassing more than 90 islands. The project is part of Saudi Arabia’s transformative economic and social reform strategy, Vision2030.
The Ashurst team was led by partners Stuart James and Bilal Rana, supported by senior associates Adam Reda and Sumit Ram, associates Omar Alaqib, Eugene Bang, Jacklin Molla and paralegal Aysha Bari.
Partner Stuart James commented:
“We are delighted to have advised Al Mutlaq on the joint venture arrangements for this highly significant project, which is expected to set new standards in regenerative tourism and sustainable development. The transaction reflects strong investor appetite for sustainable projects, and is indicative of the world class investment opportunities for private capital in the Red Sea Project and the broader Vision 2030 initiative.”
Partner Bilal Rana added:
“We are very pleased to have supported Al Mutlaq Group on this pioneer JV with The Red Sea Development Company. It reflects the strength of our relationship with Al Mutlaq Group and we very much look forward to continue supporting them on their prospective ventures.”