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A Look Into Saudi Arabia's Potential in Coastal Tourism and Yachting Industries: Market Overview, Key Players and Future Outlook

As the global demand for luxury yachts continues to rise, Saudi Arabia aims to become a global hub for luxury tourism and yachting industries with many investments, partnerships and developments already underway across the Kingdom.


Before we get into the details, it's important to get acquainted with the geography of the region and key projects driving the growth.


Saudi Arabia has 2 stunning coastlines with the Red Sea to the west and The Gulf to the east. The west coast has received lots of fame as it is home to the vibrant city of Jeddah and has been growing in popularity with the launch of multiple exciting giga-projects like Amaala, NEOM and The Red Sea Project. However, let's not forget the potential of the Gulf coast, especially with its proximity to neighbouring GCC countries like the UAE, Qatar, Kuwait and Bahrain as the yachting and leisure marine sectors grow across the region as a whole.

Credits: Lucidity Insights

Intro to the Giga-Projects:

  1. NEOM

    1. Sindalah

    2. Norlana

    3. Jaumur

  2. The Red Sea Project

  3. Amaala

    1. Triple Bay Marina and Yacht Club

    2. Marine Life Institute

  4. The Rig


 

About NEOM: A Destination of the Future

The NEOM project is an initiative of the current crown prince, His Royal Highness, Mohammed bin Salman covering 26,500 square kilometers of land across the northwestern side of the Kingdom (about the size of Albania). Sitting at the intersection of 3 continents, NEOM has 40% of the world accessible within a 4-hour flight.


The project is largely funded by the Public Investment Fund (PIF) as NEOM plays a crucial part of Saudi Arabia's Vision 2030 to diversify the country's economy from oil dependency. With a commitment to sustainability, only 5% of NEOM will be developed, leaving the remaining landscapes untouched preserving its natural beauty.


NEOM will consist of the following 10 projects (referred to as regions):

  • The Line

  • Sindalah

  • Trojena

  • Oxagon

  • Leyja

  • Epicon

  • Siranna

  • Utamo

  • Norlana

  • Aquellum


Sindalah Island

Poised to become the world's next yachting destination, Sindalah boasts pristine waters, luxurious yachting facilities and unparalleled entertainment.


📍Location: Northwestern Saudi Arabia

🎨 Designed by: Luca Dini

👷🏽 Contracts Awarded

  • Marina Developer + Operator: IGY Marinas

  • Superyacht provider: Burgess

  • Superyacht agency: JLS Yachts


🛥 Sindalah Island Features

  • 468 kms of coastline

  • 86-berth marina (can accommodate yachts up to 50m)

  • 75 offshore buoys (accommodate vessels up to 180m)

  • PADI-certified dive school

  • 38 dining concepts (including Michelin-starred brands)

  • Beach club (vibes will be Monaco meets Mykonos)

  • 413 hotel rooms and 333 serviced apartments

  • Wellness center and spa

  • Olympic-sized swimming pool

  • 6,474-yard, par-70, CEO-certified golf course

  • 300-m driving range

Credits: NEOM


Norlana

This project is set to be an exclusive 3,000 resident waterfront and yachting community on the coast of the Gulf of Aqaba centered around wellbeing and world-class sporting facilities.


📍Location: Gulf of Aqaba, Northeastern Saudi Arabia

🎨 Designed by: 10 Design


🛥 Norlana Features

  • Equestrian and polo estate

  • Luxury art galleries

  • 18-hole signature golf course

  • Beach club

  • 120 berth-superyacht marina

  • Water taxi service for residents and guests

  • 2 luxury hotels

  • 711 residential properties

Credits: NEOM

Jaumur

This project is set to be an exclusive residential community set around a superyacht marina on the east coast in the Gulf of Aqaba, with accomodations for up to 6,000 offering a luxury oceanfront lifestyle to its residents. While being centered around the superyacht marina, the Jaumur community will feature a deep-sea research institute welcoming experts and ambitious marine industry pioneers to the hub.


📍Location: Gulf of Aqaba, Northeastern Saudi Arabia


🛥 Jaumur Features

  • 500 marina apartments

  • 700 luxury villas

  • 2 destination hotels, with 350 rooms

  • 1.5 km aerofoil welcome structure

  • Deep-sea research center

  • International boarding school

  • Marina with capacity for 300 superyachts (up to 150 m)


Credits: NEOM


 

The Red Sea Project

The Red Sea Project is being developed across 28,000 km2 of Saudi Arabia's west coast and includes 90 islands, beaches, deserts, mountains and a volcano! The destination is set to become the first luxury regenerative tourism destination taking a global lead on implementing sustainable infrastructure, renewable energy and regenerative solutions across its high-end facilities.


The Red Sea has welcomed its first guests in 2023, upon completion in 2030, the destination will be home to 50 resorts with 8,000 hotel rooms and more than 1,000 residential properties across 22 islands and six inland sites. The project will also include luxury marinas, golf courses, entertainment, leisure facilities and the Red Sea International Airport.


Key Island Projects:

  • Ummahat Islands: home to St. Regis Red Sea Resort and Nujuma, a Ritz-Carlton Reserve

  • Turtle Bay: State-of-the-art residential and commercial area, housing 14,000 workers, staff and Red Sea Global management

  • Sheybarah Island: exclusive island located 45-min boat ride away from the mainland

  • Shura Island: Main hub island with incredible native flora and fauna


🎨 Developer: Red Sea Global (RSG)


♻️ Sustainability Initiatives

  • 100% carbon neutral

  • 760,000 solar panels across five farms

  • No waste-to-landfill or single-use plastics

  • Preserving 75% of islands for conservation

  • 30% net conservation goal by 2040



 

About Amaala: A World class Marina Village

Upon completion, Amaala is set to have 2,500 hotel keys, roughly 700+ residential villas, apartments and estate homes and 200+ shops, cafes and restaurants for visitors and residents to enjoy. It is important to note, Amaala is seperate from the NEOM and Red Sea Projects, but is often referred to as a part of the larger "Red Sea ecosystem" as the three initiatives are "intended to co-exist in a complementary manner to cover different target audiences by providing different offerings to match their needs" according to the country’s Public Investment Fund (PIF).


Amaala's Triple Bay Marina and Yacht Club

This project is being developed in the Prince Mohammed bin Salman Natural Reserve which is equidistant from NEOM in north and the Red Sea Project in south. It's one of six royal reserves and is home to dramatic landscapes, biodiversity and 85,000-year-old rich cultural heritage.


📍Location: Northwestern Coast

🎨 Designed by: HKS Architects

👷🏽 Developer(s):

  • Project developer: Red Sea Global (RSG)

  • Partial construction contract: Baytur

  • Yacht Club Partner: Monaco Marina Management (M3)

🛥 Amaala Features

  • 7,900 sqm

  • 4 floors

  • Terrace restaurant

  • Infinity pool deck

  • Rooftop cabana lounge

  • Full-service 10-hectare marina

  • 120 berths (up to 130m)

  • 80m Quai d'honneur for yachting events, regattas and launches

  • Unique porte cochere for discrete arrival by tender

Credits: HKS Architects


Marine Life Institute:

Located in Amaala's Triple Bay Marina will be a fully-immersive experiential marine life center, featuring one of the largest man-made reefs spanning 40m long and 10m deep. Designed to resemble coral, the facility will be made from glass-reinforced concrete panels and will. be comprised of 4 building clusters.


🎨 Designed by: Foster + Partners

👷🏽 Developer(s): Red Sea Global (RSG)



 

The Rig

Located on the eastern gulf coast of Saudi Arabia, The Rig is set to be the world's first offshore adventure tourism destination inspired by the legacy of Saudi Arabia's rich oil and gas heritage covering over 300,000m2 roughly 40 km from the coast.


📍Location: Al Juraid Island, Gulf Coast

👷🏽 Developer: Oil Park Development Company (OPDC) wholly owned by the PIF

🛢 The Rig Features

  • 3 hotels

  • 800 hotel rooms

  • 11 restaurants

  • 70+ attractions and activities

  • Helipad

  • Diving center

  • Amusement park

  • Top-tier marina

Credits: The Rig
 

Market Insights (Coastal Tourism & Yachting)

As Saudi Arabia continues to invest in infrastructure, landmarks, and transportation to facilitate travel, the Kingdom is positioning itself as a major player in both coastal tourism and the yachting industry. Here's an in-depth look at the current trends, developments, and future outlook of these sectors.


Coastal Tourism across the Kingdom

Key Opportunities:

  • Scuba Diving 🐠

  • Kite Surfing 🌊

  • Sailing ⛵️

  • Entertainment 🎤

  • Racing events 🚤

  • Cultural tourism 🐪

  • Adventure travel 🎢

  • Luxury retreats ⛺️

  • Nature reserves 🪸

  • Yachting 🛥


Key Trends:

  • Promoting Domestic Travel

According to NEOM, Saudis spend $15 billion per year on tourism, $12.5 billion on healthcare, $5 billion on education and another $5 billion on general investment abroad. Through their major investments in projects, the government hopes to retain a larger share of this by creating key tourism destinations closer to home.


  • Sustainability and Eco-Luxury Tourism


Saudi Arabia is home to some of the most resilient and untouched coral reefs as well as expansive and diverse landscapes across the nation that have been relatively undeveloped to date. This gives the Kingdom a chance to preserve and leverage these natural assets when developing the infrastructure surrounding it. Initiatives such as the Red Sea Project and Amaala aim to create luxury tourism experiences while incorporating both sustainable and regenerative practices.


  • Emerging Yachting Industry

Saudi Arabia is rapidly developing its yachting industry with significant investments in infrastructure and strategic partnerships, including the establishment of new yacht manufacturing facilities in NEOM and collaborations with global leaders like MB92 Group and Burgess. The Kingdom is enhancing its profile by hosting major international events such as the E1 Series, America's Cup, and the Saudi Arabian Grand Prix, further boosting its appeal as a premier yachting destination. Strategically located along the Red Sea and close to key maritime routes, Saudi Arabia's developments in yachting are integral to the greater GCC yachting industry, complementing the established hubs in the UAE and promoting regional tourism.


  • Infrastructure Development


Infrastructure development is a key factor that is set to significantly boost coastal tourism growth and create new opportunities across the Kingdom. The expansion of King Abdulaziz International Airport in Jeddah, alongside the development of the new Red Sea International Airport, is enhancing accessibility to coastal destinations. Likewise, the Saudi Landbridge railway project, will connect the Red Sea coast to the Gulf, from Riyadh to Jeddah facilitating easier domestic travel. The government is partnering with global hotel chains to increase high-end accommodations along the coast, including luxury resorts and boutique hotels. While modern marinas, such as Sindalah Marina in NEOM, are being developed to cater to the luxury yachting market.


  • Adventure and Sports Tourism


Saudi Arabia's coastline is becoming a prime destination for adventure and sports tourism, driven by innovative projects like The Rig and the development of coastal eco-parks and facilities. The Rig. isa groundbreaking project located on The Gulf coast, is set to be the world's first tourism destination inspired by offshore oil platforms. It will offer an array of adrenaline-pumping activities, including skydiving, bungee jumping, and scuba diving, alongside luxury hotels and restaurants, making it a unique draw for thrill-seekers. While the Red Sea coastline offers extensive opportunities for watersports, such as scuba diving, snorkeling, kite-surfing and deep-sea fishing.

 

Spotlight on Saudi Arabia's Yachting Industry


🌐 Industry Data:

  • EXPORTS: In 2022, KSA exported $530k in recreational boats, main destinations include:

    • Australia 🇦🇺 ($389k)

    • Kuwait 🇰🇼 ($69.7k)

    • Iceland 🇮🇸 ($32k)

    • France 🇫🇷 ($28.3k)

    • United Arab Emirates 🇦🇪 ($11.2k)

  • IMPORTS: In 2022, KSA imported $20M in recreational boats primarily from: 

    • United Arab Emirates 🇦🇪 ($6.32M)

    • United States 🇺🇸 ($6.22M)

    • Spain 🇪🇸 ($1.72M)

    • Netherlands 🇳🇱 ($1.02M)

    • Bahrain 🇧🇭 ($1.01M)

⚓️ Marina Facilities:

  • Jeddah Marina and Yacht Club (JYC)-Now Open

    • 90 berths

    • Yachts up to 120 m

  • Red Sea Marina-Now Open

    • 300 berths

    • Yachts up to 60 m

  • Sindalah Marina-Opening Soon

    • 86 berths

    • Yachts up to 50 m

    • 75 offshore buoys (accommodate vessels up to 180m)

  • Amaala Triple Bay Marina-TBD

    • 120 berths

    • Yachts up to 130 m

  • Jaumur-TBD

    • 300 superyacht capacity

    • Yacht sup to 150 m

  • Norlana-TBD

    • 120 berths

  • The Rig-TBD

    • 50 berths


🗞 Industry Evolution:

  • (TBD 2024) Sindalah Marina set to open in the Red Sea

  • (Mar. 2024) Saudi Aramco launches first marine fueling station at the Jeddah Yacht Club

  • (Feb. 2024) Inaugural E1 Series race held in Jeddah

  • (Nov. 2023) Jeddah hosted the region's first-ever America's Cup event at the Jeddah Yacht Club

  • (Nov. 2023) Global superyacht provider, Burgess partnered with NEOM to offer range of luxury services for Sindalah

  • (Sept. 2023) 10,000-square-metre yacht repair facility in Sindalah (Partnership with NEOM x MB92 Group)

  • (Sept. 2023) Red Sea Global partners with Monaco Marina Management to establish Amaala Yacht Club

  • (June 2023) IGY Marinas partners with NEOM to develop and operate the Sindalah Marina

Credits: Red Sea Global

What This Means For the Yachting Industry:

Saudi Arabia's yachting industry is undergoing a significant transformation, presenting lucrative opportunities for industry leaders and investors globally. The region has the potential to completely disrupt the global yachting calendar as we know it becoming an exciting new premier destination, drawing yachters and tourists alike with its year-round sunshine, outstanding facilities, and lifestyle that emulates days aboard a superyacht. Conveniently located by both boat and plane from most European and Asian countries, Saudi Arabia's strategic position enhances its appeal. This prime location, coupled with high ROI potential from ongoing and future projects, makes the Kingdom an attractive market for global investors.


According to Mohammed AlQahtani, CEO of Saudi Arabia Holding Co. the Kingdom's goal is to become a global center for luxury yacht production. This includes the establishment of a factory in NEOM and two more additional factories to expand the industrial infrastructure across the region. The first center will set to emphasize the importance of sustainable development beginning with its design and equipment, setting a new standard for the industry. Yachts of all sizes can be accommodated for in-water maintenance, while the repair center can support vessels up to 40-metres on the drydocks. Once established, the intention is to focus on international exports boosting the national economy and increase foreign trade.


While the Kingdom's regulatory framework is still evolving with a few grey areas and new yachting regulations being put in place as we speak, the aim is to support the grow and openness of Saudi water's to the world. Regarding entry visas, a system has been put into place allowing all nationalities of yacht crew working on board to hav be granted an entry visa, despite the current restrictions on standard tourist entry visas for some countries.


🇸🇦 Our Market Entry Advice:

  • Focus on Sustainability: Emphasize renewable energy and green technologies use across yachting and tourism projects. *Bonus points if your solution is not only sustainable, but also regenerative.

  • Regulatory Framework Evolution: Stay updated on visa reforms, regulatory changes and business laws.

  • Utilize SEZs: Take advantage of incentives and benefits in Special Economic Zones offering competitive incentives.

  • Invest in Market Understanding: Take time to learn about the distinct local cultures, market dynamics, and business practices. *It's important to note that each region has its own unique culture from varying tribes and influences.

  • Partner Locally: Collaborate with local partners for regulatory navigation and easier cultural integration.

  • Hire Local Talent: Comply with Saudization regulations and also gain market insights by hiring locally.

  • Cultural Integration: Understand local customs and business etiquette for smoother operations.

  • Develop Market Readiness: Create a robust market entry strategy with support from expansion platforms.

  • Invest in Relationships: Trust and mutual respect is key for business and life in Saudi Arabia, the time and energy you invest in a relationship will be rewarded with long-term partnership.


References:

 

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