New private island to be developed in Saudi Arabia's Red Sea for cruise tourists

PIF-backed Cruise Saudi aims to create exclusive destination capable of initially accommodating up to 2,000 guests

A cruise ship off Saudi Arabia’s western coast. Cruise Saudi has so far welcomed more than 300,000 cruise passengers, with plans to serve about 1.3 million people annually by 2035. AFP

Saudi Arabia is set to open a private island on the Red Sea dedicated to cruise tourism, as it seeks to tap the potential of its growing cruise sector, as part of the kingdom's economic diversification plans.

The island, which is slated to open in December, will be developed through a partnership between Cruise Saudi, the Public Investment Fund-owned company overseeing the sector, and contractor PC Marine Services.

On Wednesday, Cruise Saudi said it awarded a contract to PC Marine Services, but it did not disclose the value. Cruise Saudi has not yet responded to The National's request for further details on the investment.

The development will see the island converted into an exclusive destination for cruise passengers, with amenities such as beach clubs, and private villas that will initially accommodate up to 2,000 guests.

The island will join Thuwal Private Retreat, a private island also on the Red Sea that was opened earlier this year. Cruise Saudi, however said that the latest development will be "a first of its kind offering".

“The creation of this new cruise destination in the Red Sea marks an exciting step in the development of Saudi’s cruise industry. We look forward to welcoming cruise lines and their passengers to experience authentic Saudi hospitality, culture and activities in the heart of the Red Sea," Barbara Buczek, chief destination experiences officer of Cruise Saudi, said.

The Middle East's cruise sector is lagging behind global competitors as it seeks to navigate the challenging waters of the Red Sea crisis, but industry experts had said the region still has major potential for growth.

Saudi Arabia, under its Vision 2030 agenda, has been aggressive in developing its key economic sectors as it diversifies its economy away from oil. Tourism is one of its key pillars, and Riyadh has steadily rolled out programmes to attract visitors and more investment for developments.

Cruise revenue in the Arab world's largest economy is expected to hit $58.13 million by 2029, from an estimated $47.36 million in 2024, at a compound annual growth rate of 4.18 per cent, data compiled by Statista shows.

The kingdom is home to six Unesco World Heritage Sites, "rarely or never seen by international tourists, and none of which have ever been featured on cruise itineraries before", according to Cruise Saudi. Three of these sites are now accessible by sea – Al Ahsa Oasis, the Hegra archaeological site in AlUla and Historic Jeddah, the Gate to Makkah.

"There are multiple destinations available and different shore excursions that cater to all sorts of activities and interests for visitors, from culture and heritage to entertainment, adventure and nature," Cruise Saudi says on its website.

Cruise Saudi is 100 per cent owned by the PIF, Saudi Arabia's sovereign wealth fund. It has so far served more than 300,000 cruise passengers, with plans to serve about 1.3 million people annually by 2035, which would support the kingdom's wider tourism industry.

The company welcomes cruise lines from around the world at its Jeddah, Yanbu and Dammam ports.

Jeddah-based PC Marine Services, meanwhile was established in 2002 and is engaged in coastal development, ports construction and rehabilitation, dredging and reclamation, environmental treatment and the construction of marine structures.