Wednesday, November 1, 2023

Saudi Airlines Catering Co. inks $720m agreement with Red Sea Global


Heading: Saudi Airlines Catering Co. Signs SR2.7 Billion Deal for Laundry Services at Red Sea Global’s Tourist Developments

Saudi Airlines Catering Co. (SACC) has recently signed a lucrative SR2.7 billion ($720 million) deal to provide laundry services for hotels at Red Sea Global’s tourist developments. The agreement, announced on the Saudi stock exchange, Tadawul, is expected to significantly impact SACC’s profit margin by the third quarter of 2025. This 20-year contract will see SACC operating laundry services for hotels, resorts, and other facilities within the destination. The deal is part of Red Sea Global’s strategic plan to attract investment opportunities in new industrial and tourist cities.

Heading: Red Sea Global’s Expansion Plans and Partnership Opportunities

Red Sea Global (RSG) is preparing to open its doors to visitors later this year and has been actively seeking partnerships with Saudi firms for its development and operation. RSG plans to operate 50 resorts by 2030, with over 8,000 hotel rooms and 1,000 residential buildings spread across 22 islands and six inland areas. The company aims to boost local involvement by organizing local and regional meetings to highlight projects along the Kingdom’s Red Sea coast and attract local bidders. As of now, 70 percent of existing contracts have already been awarded to Saudi companies.

Heading: Commitment to Local Workforce and Gender Diversity

In addition to involving Saudi firms in its projects, RSG is also committed to ensuring that half of its workforce comprises Saudi nationals. Tracy Lanza, global head of brand development at RSG, revealed that the company is edging closer to reaching this target. Currently, the marketing team stands at 67 percent Saudi nationals, with a significant representation of Saudi women. This commitment to gender diversity aligns with Saudi Arabia’s Vision 2030, which aims to empower women and increase their participation in the workforce.

Heading: The Impact of the Deal on SACC’s Business Sustainability

The recently signed deal between SACC and RSG is expected to have a positive impact on SACC’s business sustainability. By increasing the company’s cash flow and enhancing its business, the contract will contribute to SACC’s long-term growth and profitability. As part of its strategic plan, SACC aims to attract investment opportunities in new industrial and tourist cities, making this deal a significant step towards achieving its goals. The final sign-off from The Red Sea Global Board of Directors is required before the contract becomes effective.

Heading: RSG’s Ambitious Development Plans and Opening to Visitors

RSG’s ambitious development plans include the opening of three resorts this year, along with the launch of domestic flights and welcoming travelers to its airport. With a vision to become a leading tourist destination, RSG aims to offer world-class hospitality experiences across its 22 islands and six inland areas. The company’s commitment to partnering with Saudi firms and involving local bidders demonstrates its dedication to supporting the growth of the Saudi economy and creating job opportunities for Saudi nationals.

Heading: Conclusion

The SR2.7 billion deal signed between Saudi Airlines Catering Co. and Red Sea Global marks a significant milestone in the development of tourist facilities in the Red Sea region. As RSG prepares to open its doors to visitors, partnerships with Saudi firms and involvement of local bidders have been key priorities. The commitment to gender diversity and the goal of having 50 percent Saudi nationals in its workforce align with Saudi Arabia’s Vision 2030. This deal not only benefits SACC by boosting its profit margin but also contributes to the overall growth and sustainability of the Saudi economy.

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