RSG's residential sales hit SAR 2B, with international buyers taking 16% of the portfolio. New Saudi ownership rules for non-Saudis are expected to expand the buyer base with more resorts opening.
Alpha Score of 45 reflects weak overall profile with moderate momentum, poor value, weak quality, moderate sentiment.
Red Sea Global has sold roughly SAR 2 billion worth of residential units, with international buyers accounting for about 16% of the total, Chief Investment and Legal Officer Greg Djerejian told Argaam. The company's residential portfolio runs about 1,600 units across the Red Sea and AMAALA destinations. New Saudi regulations allowing non-Saudis to own property in designated zones are expected to broaden the buyer base.
Djerejian said the regulatory updates reinforce RSG's existing strategy without forcing changes to development plans or timelines. The rules, which let foreigners buy real estate in specific geographic areas including the Red Sea destination, should expand the pool of potential investors and support the development of sustainable residential communities, he said.
Stephen Cheesebrough, Chief Development Officer at RSG, said international buyers currently account for roughly 10% of total buyers across the Red Sea and AMAALA projects. The company already saw international interest before the new regulations were introduced, he told Argaam. It is still early to measure the full impact of the rules, he said. They have helped raise international awareness of the Kingdom as a market for property ownership and long-term investment, not just a tourist destination.
Cheesebrough expects the share of international buyers to rise as more projects open, the global profile of the two destinations grows, and potential buyers get to visit the resorts, residential communities, airports, golf courses, marinas, and infrastructure firsthand.
Djerejian said residential units are a key pillar for RSG, both commercially and for building sustainable long-term communities. Shura Island will offer 305 residential units, including internationally branded and standalone residences, alongside leisure, retail, and lifestyle offerings. The company has developed 21 exclusive villas for sale at Nujuma, a Ritz-Carlton Reserve. The AMAALA destination includes 349 residential units available for sale. Laheq Island, RSG's first development focused primarily on residential communities, will comprise about 750 homes, offering a new concept of luxury coastal living.
Cheesebrough said about 20% of the units released for sale remain available, with the percentage varying across different communities and residential clusters. The company will continue releasing units in phases, in line with construction progress, destination readiness, and the nature of each community. Expanding the buyer base is not itself a reason to increase supply in an unplanned manner, he said. Maintaining a limited number of residential units is essential to preserving privacy, quality, and long-term value.
The most significant impact of the new regulations lies in how the real estate portfolio is presented to the market, expanding engagement with international buyers and real estate specialists, and providing clearer information on ownership procedures, Cheesebrough added.
Djerejian said RSG's residential strategy has been based on long-term demand and a phased, carefully planned development and execution strategy since the initial planning of the Red Sea and AMAALA destinations following the launch of Saudi Vision 2030. The new regulations will not alter the company's development plans or project timelines, he stressed. The company has reached the final stages of developing the current phase of both destinations.
The total value of contracts awarded by RSG reached SAR 93.7 billion by June 2026, across 24,436 contracts, Djerejian said. About 85% of the total contract value had been awarded to companies headquartered in Saudi Arabia, creating new opportunities for national companies, developing local capabilities, and supporting employment across the Kingdom.
RSG is developing luxury tourism destinations with investments worth billions of riyals, fundamentally based on sustainability and environmental regeneration, according to the official. The investment strategy is implemented through a phased approach aligned with project delivery targets. The company does not operate with publicly announced annual investment targets or a single overall program value. It allocates investments according to the requirements of each development asset.
The investment program will continue alongside development activities through 2027. As the main destinations transition from development to operations, the nature of investments will gradually evolve, he said. Construction will continue on future phases and projects, including Laheq Island. The focus will increasingly shift towards operational excellence, commercial performance, and enhancing the guest experience.
Cheesebrough said the company has secured strategic financing and investments from financial institutions and local, regional, and international partners. RSG secured a SAR 14.12 billion financing facility for the Red Sea Project, the first Saudi riyal-denominated credit facility to receive green financing accreditation. The AMAALA project has also secured a SAR 6.5 billion credit facility. Stc Group invested SAR 1.2 billion in the destinations' smart infrastructure. The company has entered into joint ventures and partnerships with global hospitality brands, including Four Seasons and Jumeirah.
These financing arrangements and joint ventures reflect the confidence of financial institutions and partners in the quality of the destinations and their long-term potential, Cheesebrough said.
The Red Sea and AMAALA destinations currently include 14 operating resorts, offering a total of 1,916 hotel rooms. Eleven of the operating resorts are at the Red Sea destination. AMAALA includes three resorts: Four Seasons AMAALA, Six Senses AMAALA, and Darah.
The Red Sea destination has expanded rapidly since welcoming its first visitors in 2023. AMAALA welcomed its first guests in 2026, according to Cheesebrough. The opening of Four Seasons Resort and Residences Red Sea and Four Seasons Resort and Residences AMAALA marks an important milestone in the transition of both projects to a stage where hospitality facilities are integrated with residential communities.
The next phase at the Red Sea destination includes the opening of six additional resorts: Rosewood, Raffles, Jumeirah, Faena, Grand Hyatt, and Fairmont. At AMAALA, RSG plans to open six more resorts: Clinique La Prairie Resort, Jayasom Wellness Resort, Rosewood, Equinox Resort and Residences AMAALA, The Ritz-Carlton Resort, and Nammos Resort. These resorts will open progressively throughout 2026 and 2027, depending on the operational readiness of each project.
Djerejian said the addition of the Thuwal Private Retreat, located off the coast of Jeddah and opened in 2024, will bring the company's total number of resorts to 27 once all planned openings are completed.
RSG carries an Alpha Score of 36 out of 100, labeled Mixed, in the Industrials sector. The score reflects a balanced risk-reward profile with no clear directional bias. For more details, see the RSG stock page.
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