Saudi Arabia's Al-Ula Development Company, a Public Investment Fund (PIF) owned entity and local investment firm Kun Investment Holding will jointly develop the Aman Hegra hospitality project in Al-Ula, Saudi Arabia.

The project involves the development of a 42-key hotel along with 30 branded residences.

The development will span an area of 8 million square metres in Hegra, Saudi Arabia’s first Unesco World Heritage Site.

According to the media statement, Kun Investment Holding will own 80 per cent and Al-Ula Development Company will own 20 per cent of the joint venture.

The companies did not disclose any financial or construction timeline-related details.

Mohammed Hefni, CEO of Kun Investment Holding, said, "This groundbreaking development marks an important moment in Saudi Arabia's tourism and hospitality landscape aligning with the Kingdom’s vision 2030.”

Naif Saleh al-Hamdan, managing director of Al-Ula Development, said, "As we embark on this transformative journey with Kun Investment Holding for the Aman Hegra project, we are dedicated to crafting not just a lifestyle and hospitality experience, but authentic and memorable destinations in the historical city of AlUla. We look forward to working together as we enable the transformation of AlUla into a place to visit, live and invest."

"The Aman Hegra project aligns with our commitment to fostering sustainable environments, unlocking the potential of this remarkable destination," said Fabien Toscano, CEO of AlUla Development Company.

PIF is planning to develop the Al-Ula region as a premium tourism destination.

In January, MEED exclusively reported that Saudi Arabia's Destinations Development Company (DDC), a wholly-owned subsidiary of the sovereign wealth vehicle Public Investment Fund (PIF), has started developing a new tourism destination in the Al-Ula region of Saudi Arabia.

The development, known as Project W, includes the construction of a 1,000-key Monolith resort on top of an escarpment and associated infrastructure works.

The development will also include a spa, an amphitheatre, stables, horse riding areas, a water park, a hilltop area, a sports centre, an augmented reality/virtual reality hub, an observatory and planetarium, and an 18-hole championship golf course.