A historical site in old Jeddah.

The Saudi Commission for Tourism and Antiquities (SCTA) plans to launch a company next month with initial capital of SR250 million to help turn some of the country’s oldest government-owned buildings into hotels.

Details of the financial structure of the Saudi Heritage Hospitality Company would be announced during the fourth National Urban Heritage Forum to be held in Abha from Dec. 1 to 4, said Hamad Al-Semaeel, SCTA vice-president for tourism investment and development, here recently.

Al-Semaeel said the Public Investment Fund (PIF) would be a stakeholder in the venture, with shares offered to the public at a later stage. He said the SCTA has already conducted a feasibility study on the company.

He said the SCTA had started setting up the company in August this year, in line with the requirements of the Saudi Arabian Monetary Agency. Several leading hospitality and heritage companies have indicated their willingness to contribute to the company’s capital, he said.

“The company will undertake investment, rehabilitation, management and operation of several heritage buildings owned by the state, to transform them into tourism accommodation facilities,” said Al-Semaeel.

He praised the PIF for coming in as a founder shareholder, saying that efforts to get more capital would target private sector companies.

He said the SCTA in collaboration with a consulting firm has conducted feasibility studies on four sites for development. They are in Al-Dariyah, Al-Hofuf, Al-Ula and the old part of Jeddah.

 
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