AlUla: Building a new haven for ESG investors
AlUla is shaping up to become a once in a generation opportunity for investors who care about environmental, social, and corporate governance
With breathtaking landscapes and cultural heritage accumulated through millennia of flourishing civilisations, AlUla is truly incomparable.
Spread across its 22,000 square kilometres are inscriptions that reveal the origins of the Arabic language and unique archaeological sites that give insight into how people lived here thousands of years ago.
While you may not have heard of this desert oasis in north west Saudi Arabia until now, it’s undergoing a major transformation that will make this ancient region an important destination for the future.
Spearheading this change is the ambitious Journey Through Time Masterplan, which has been carefully created under the leadership of HRH the Crown Prince Mohammed bin Salman and the guidance of HH Prince Badr, the Saudi Minister of Culture and the Governor of the Royal Commission for AlUla (RCU)
Designed to withstand the test of time, just like AlUla, the Masterplan was developed following multiple levels of consultations with experts and local residents, as well as detailed research and archaeological surveys.
The 15-year road map will harness sustainable development principles to protect and preserve AlUla’s heritage sites, breath new life into the landscape and ultimately mould it into the world’s largest living museum. Springing up around it will be exciting new ventures ranging from eco-tourism activities and creative hubs to educational institutions and community-led initiatives.
Needless to say, this has also created a bounty of incredibly wide-ranging investment opportunities across landmark cultural institutions, hospitality businesses, and commercial and residential projects with an estimated total development value of over US$15 billion (£10.95 billion).
Bolstered by the enormous potential at AlUla, projects with local and international partners across arts, culture, hospitality, retail, travel and beyond are already well under way.
By 2035, AlUla will have five unique tourist districts, each centred around a treasured heritage site. The flagship Kingdoms Institute will become a leader in archaeological research, sharing its expertise and knowledge with people around the world. And tourists will be able to check into one of the 5,000 new accommodation options, including at luxury resorts currently under development with Aman, Accor/Banyan Tree and Habitas.
To establish the foundations for these developments, the RCU has already injected US$2 billion (£1.44 billion) into the core infrastructure.
This includes the recent expansion of AlUla International Airport, which increased its capacity by 300 per cent, and is now more than capable of handling the 2 million tourists a year who will visit the region by 2035.
Another success is the multi-purpose events venue Maraya, already an architectural marvel as the world’s biggest mirrored building. The 500-seater venue has hosted world renowned artists such as Andrea Bocelli and Lang Lang and events of international acclaim, including the Hegra Conference of Nobel Laureates and the Winter at Tantora cultural festivals.
A further US$ 3.2 billion (£2.31 billion) will be dedicated to building key green infrastructure as part of the Masterplan, which will aid future sustainable developments and create more opportunities for like-minded investors and partners.
As part of that, a new 46km low-carbon tramway will be built to connect the five districts of AlUla with its airport. There’s concerted effort to increase clean power, with at least 50 per cent of demand met by renewable energies. Even the water supply system will be upgraded through a tailor-made water conservation programme.
But perhaps most excitingly, Journey Through Time is just the first of six Masterplans taking AlUla into the future. By their full completion in 2035, the population of AlUla will have grown to 130,000, with 38,000 new jobs created, contributing US$32 billion (£23.06 billion) to Saudi Arabia’s GDP.
Amr Almadani, Chief Executive Officer of the Royal Commission for AlUla, said: “With an estimated total development value of over US$15 billion, the Journey Through Time Masterplan is a rare opportunity to showcase AlUla’s potential.
“By de-risking investment opportunities through our US$2 billion seed funding and creating a robust governance framework, we have created a platform for responsible and sustainable development to regenerate a unique location featuring a UNESCO World Heritage Site.
“With US$3.2 billion reserved for priority primary infrastructure, the development of AlUla will be anchored in building strong foundations as well as safeguarding AlUla’s cultural and heritage assets.”
He added: “Responsible investment can deliver strong business opportunities and investment returns, whilst also helping to address urgent social and environmental concerns. For our partners around the globe, this is an opportunity to be at a new frontier of environmental, social and economic growth.”
Learn more about AlUla, the Journey Through Time Masterplan and its investment opportunities here.