The international press is keeping tabs on Red Sea’s Laheq Island as a test of the Kingdom’s ability to compete for elite holiday-home demand. Bloomberg reported on the ring-shaped archipelago being developed by PIF-backed Red Sea Global, which is intended to lure foreign investment and establish the Kingdom as a high-end tourism destination, moving faster than some other giga-projects like Neom.

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Demand for Laheq project is solid, the business information service quoted Red Sea Project’s head of development Stephen Cheesebrough, as the Red Sea Global expects SAR 2 bn in sales this year and has already attracted international buyers, including an unnamed UK Premier League footballer. The 400-hectare project will include 528 villas and 221 apartments priced between USD 1.5 mn and USD 40 mn, alongside a golf course, marina, beach club, and two hotels, Cheesebrough said.

BUT- Bloomberg alluded to the ultra luxury property market in Saudi being “still in its infancy” compared to Dubai, with social restrictions such as the alcohol ban posing hurdles to drawing global ultra-wealthy buyers, according to Faisal Durrani, head of Middle East research at Knight Frank.

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