The Royal Commission for AlUla (RCU) has opened the next phase of the Saudi giga-project to private-sector investors through a public-private partnership (PPP) model, according to a report by Arabian Business.
The move is part of RCU's strategy to accelerate development of the 22,000-square-kilometre heritage destination in northwest Saudi Arabia. The commission is seeking partners to finance, build, and operate hotels, resorts, infrastructure, and visitor attractions.
RCU Chief Executive Philip Jones said the organisation is targeting a mix of international and local investors. "We are looking for partners who share our vision for sustainable, responsible tourism development," Jones was quoted as saying.
The next phase includes multiple PPP packages covering accommodation, transport, utilities, and cultural venues. RCU has already pre-qualified a number of consortia and will issue requests for proposals in the coming months.
AlUla has been largely buffered from the direct effects of the regional conflict, though RCU acknowledges it has impacted the next phase of development. Jones noted that the commission has adjusted its timeline and procurement strategy accordingly.
The destination, which includes the UNESCO World Heritage site of Hegra (Madain Saleh), has seen significant investment since RCU was established in 2017. Masterplanned communities, luxury resorts, and a new airport are among the projects already underway.
Why it matters
For travel-trade professionals, the AlUla PPP programme represents a rare opportunity to participate in one of the Middle East's most ambitious tourism developments. The shift toward private capital signals RCU's confidence in the project's long-term viability despite regional headwinds. Tour operators and bedbanks should monitor the procurement process, as new hotels and attractions coming online over the next five years will expand the destination's capacity and appeal. The PPP model may also set a precedent for other Saudi giga-projects seeking to attract foreign investment.
