A SR2.7 billion ($720 million) deal has been signed which will see Saudi Airlines Catering Co. provide laundry services for hotels at Red Sea Global’s tourist developments.The agreement was announced on the Saudi stock exchange, Tadawul, and SACC expects the deal to start showing up in its profit margin by the third quarter of 2025.
The 20-year contract will see SACC operate laundry services for hotels, resorts and other facilities located within the destination.The deal is the latest struck by RSG as it gears up to opening to visitors later this year.
The announcement on Tadawul noted that the deal will boost the business sustainability of the SACC “by increasing the company's cash flow and enhancing the company's business.”
It added: “This contract is part of the strategic plan implemented by the company to attract investment opportunities in new industrial and tourist cities, noting that this contract will be subject to The Red Sea Global Board of Directors’ final sign off.”
RSG is set to operate 50 resorts by 2030, with up to 8,000 hotel rooms and over 1,000 residential buildings spread across 22 islands and six inland areas. Three of these resorts will open this year, and it is also set to welcome domestic flights and travelers to its airport.RSG has been keen to involve Saudi firms in its development and operation.
In March, it organized a series of local and regional meetings highlighting projects being developed along the Kingdom’s Red Sea coast, as well as partnership opportunities with the company, in a bid to attract local bidders.By the time the first of these meetings was held, 70 percent of existing contracts had already been awarded to Saudi companies.