Client

AMAALA Development Company

Location

Tabuk Region, KSA

Description

AMAALA is an ultra-luxury tourism spanning more than 4,000 square kilometers, being developed along the Red Sea coast. This three-island destination plans to offer everything from sea and sun to sports, arts, and culture.

Context

Given the magnitude and intricacy of the development, it was imperative to ensure the financial robustness and viability of the overarching business model. A primary concern for AMAALA was to accurately determine the costs associated with the infrastructure and a breakdown of how these investment costs could be distributed among the individual plots.

Services

  • Regional Strategic Cost Model

  • Adoption Strategy & Design Reviews

  • Asset Management Strategy

  • Operational Management Strategy

Our Value

The main objective was to employ a comprehensive validation mechanism for the business model across all three distinct levels of the project.

  • Strategic shift: We clarified the strategy by adopting a top-down approach. Transitioning from a model where public realm assets were wholly retained to vesting ownership at the regional level.

  • Establishment of an SPV: We advocated for creating a local authority dedicated to managing the development at the regional level.

  • Special Purpose Vehicle (SPV) formation: An SPV was instituted to manage and operate the development, freeing resources for the project's unique requirements.

  • Operational optimizations: By stress-testing designs, we ensured that essential operational facilities were aligned with the project's phases and elevated to meet anticipated standards.

  • Landscape efficiency review: We identified and challenged assumptions made by landscape architects, notably distorting efficiencies. This intervention ensured a more sustainable landscaping plan.

  • Clarification on project value and investment approach: A clearer perspective on the project's valuation and the investment strategy.