Red Sea Global wants to 'bring back to life' a troubled Saudi island of luxury.

The CEO of Red Sea 'Global, a state-backed Saudi developer, confirmed to the media for the first time that the company will be taking over the Sindalah Island resort. This is part of the Kingdom's efforts to save one the most visible blunders in its Vision 2030 Plan.

John Pagano said on the sidelines a Saudi business conference held in Rome that "it hasn't been officially handed over, but it will be. We will then take responsibility for it and assess how to finish?it, and bring it back into life."

Pagano's decision to take Sindalah over reflects the fact that he is one of the more experienced executives within the vast sovereign wealth fund ecosystem of Saudi Arabia, and has a track record of delivering "large-scale tourism" projects.

The multi-billion dollar project, originally part of the NEOM Megacity Development, has never been opened to the general public despite a VIP Launch Party in the autumn of 2024 that was attended by celebrities aboard superyachts.

Three people who are familiar with the operations of?Sindalah viewed this launch as an embarrassment.

NEOM's Chief Executive Nadhmi Al-Nasr has been removed from his position weeks after its launch.

One person said, "In their rush to finish they got it wrong. And it was the'straw that broke the camels back' for Nadhmi."

Last year, The Financial Times reported that Red Sea Global is in line to take over the island.

Pagano admitted that the project was mismanaged. He said that the problem was unrealistic deadlines for delivery.

He said, "It shouldn’t have opened like that."

Red 'Sea Global currently has 14 resorts open across its Red Sea and Amaala development. This number will rise to 25 by August end and 27 by the year-end. Reporting by Timour Azhari, Rome. (Editing by Alex Richardson, Mark Potter and Mark Potter.)

(source: Reuters)