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Saudi Tourism Investment Company (Asfar) plans to open its first destination by the end of the year, according to its chief executive, Fahad Bin Mushtayt.

Speaking at the MEED Saudi Giga Projects event in Riyadh, Mushtayt said: “Asfar aims to build tier-two destinations in eight cities, and we are already in five cities in less than two years."

Owned by Saudi Arabia's Public Investment Fund (PIF), Asfar focuses on tier-two tourism destinations in the kingdom by building a value chain spanning the hospitality, retail and food and beverage sectors.

MEED understands the company has initiated projects in Al Baha, Yanbu, Al Ahsa and Taif.

Asfar is developing a co-investment model with the private sector to address destination gaps.

By partnering with developers and strategically investing through joint ventures, including acquisitions of companies, Asfar aims to establish a strong foothold in the tourism market.

“We are working closely with the private sector and local municipalities to provide unforgettable experiences for travellers while driving economic growth in these regions,” said Mushtayt. 

“Asfar will partner with the private sector and make strategic investments through joint ventures and acquisitions.”

PIF has formed several companies that aim to invest in and develop tourism destinations across Saudi Arabia, including Aseer Investment Company and Saudi Downtown Company.

PIF previously signed a memorandum of understanding with the Oman Investment Authority for investment in Oman worth $5bn.

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