Red Sea Global secures a $720 million agreement with Saudi Airlines Catering Co.
Saudi Airlines Catering Co. (SACC) has recently signed a substantial SR2.7 billion ($720 million) deal with Red Sea Global (RSG) to provide laundry services for hotels at RSG’s tourist developments. The agreement, announced on the Saudi stock exchange, Tadawul, is expected to significantly impact SACC’s profit margin by the third quarter of 2025.
Over the course of 20 years, SACC will operate laundry services for hotels, resorts, and other facilities within the destination. This deal comes as RSG prepares to open its doors to visitors later this year. The announcement on Tadawul emphasized that the agreement will enhance SACC’s business and increase its cash flow, thereby boosting its overall sustainability. However, the final sign-off for the contract lies with The Red Sea Global Board of Directors.
RSG has ambitious plans to operate 50 resorts by 2030, encompassing approximately 8,000 hotel rooms and over 1,000 residential buildings across 22 islands and six inland areas. Three of these resorts are scheduled to open this year, accompanied by the commencement of domestic flights and the welcoming of travelers at its airport. In its pursuit of development and operation excellence, RSG has actively engaged Saudi firms. In March, the company organized local and regional meetings to showcase its projects along the Red Sea coast, aiming to attract local bidders for partnership opportunities. Notably, 70 percent of existing contracts had already been awarded to Saudi companies by the time these meetings took place.
Furthermore, RSG is committed to having 50 percent of its workforce consist of Saudi nationals. Tracy Lanza, the global head of brand development at RSG, revealed in May that the company was making significant progress toward achieving this target while attending the Arabian Travel Market 2023 in Dubai.
The recent partnership with SACC reinforces RSG’s dedication to collaborating with Saudi companies and contributing to the country’s economic growth. By securing laundry services through this deal, RSG ensures that its hotels and resorts provide top-quality amenities to guests, further enhancing the overall visitor experience. With the agreement projected to begin impacting SACC’s profit margin in the coming years, both parties can look forward to a prosperous and mutually beneficial long-term partnership.
