White & Case and The Law Office of Megren M. Al-Shaalan Advise on Phase One of Saudi Arabia's Red Sea Project
3 min read
Global law firm White & Case LLP and the Law Office of Megren M. Al-Shaalan have advised The Red Sea Development Company, a wholly-owned subsidiary of Saudi Arabia's sovereign wealth fund, The Public Investment Fund, on the signing of key finance documents for Phase One of The Red Sea Project, the revolutionary tourism giga project currently under development on the Red Sea coast of Saudi Arabia.
"The Red Sea Project is one of the most ambitious tourism projects the world has ever seen, and is clearly setting a new standard for sustainable tourism and leisure development," said White & Case partner Adam Pierson, who co-led the Firms' deal teams with partner Alexander Malahias. "This successful signing is another example of White & Case's involvement on some of Saudi Arabia's most important projects for more than 60 years."
The Red Sea Project extends over more than 90 islands and a total of 28,000 square kilometers of exquisite natural beauty. It is uniquely diverse, both in its geography and in the assets that are planned to be developed, with Phase One featuring 16 luxury hotels, residential properties, state of the art leisure and entertainment facilities, a bespoke golf course and extensive staff accommodation and facilities.
"The Red Sea Project represents the first major tourism project in Saudi Arabia and a fundamental element of the Kingdom's Vision 2030," said White & Case partner Alexander Malahias, who co-led the Firm's deal team. "It also demonstrates Saudi Arabia's commitment to energy transition and exploration of alternative income streams to those generated by fossil fuels, given its ambitious target of increasing tourism revenues from 3 percent of GDP to 10 percent."
The project is to be financed by five Saudi Arabian banks through a conventional term loan and revolving credit facility. In keeping with the overall aim of the project to be a global pioneer in regenerative tourism and sustainable resort development, the financing will qualify as the first green conventional project financing undertaken in Saudi Arabia.
White & Case partner Megren Al-Shaalan, who was part of the Firm's deal team and is managing partner of the Law Office of Megren M. Alshaalan (LOMAS) in cooperation with White & Case, commented: "We have long established relationships and a full service team in Saudi Arabia that works closely with lawyers globally. As demonstrated by our work on The Red Sea Project, clients know we can deliver for them on their most strategic projects and transactions. Of particular significance is the large number of Saudi nationals forming part of the deal team."
The White & Case and LOMAS team that advised on the deal was led by partners Adam Pierson (Abu Dhabi and LOMAS, Riyadh) and Alexander Malahias (Abu Dhabi) and included partners Megren Al-Shaalan (LOMAS, Riyadh), Carina Radford and Victoria Landsbert (both London) and Ibaad Hakim (Abu Dhabi), local partner Louise Vun (Dubai), counsel Tallat Hussain (London) and Habeeb Rahman (Abu Dhabi), and associates Jennifer Riddle, Michael Gabriel, Adam Freeman and Patrick Burrows (all Abu Dhabi), Greg Pospodinis (Dubai), and, from the Law Office of Megren M. Al-Shaalan, associates Waad Alkurini, Nezar Al Abbas, Manal Al-Musharaf, Reem Albakr, Husam Azhar and Nawaaf Alawaad.
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