The Red Sea, Saudi Arabia

About The Red Sea Destination

The Red Sea destination covers 28,000 km² of coastline in Tabuk province, stretching across more than 90 islands and 200 km of shoreline on Saudi Arabia’s west coast. It is developed by Red Sea Global — a company fully owned by the Public Investment Fund — as part of Saudi Arabia’s Vision 2030 plans.

The area is built around two main islands: Shura Island, the central hub, already open with resorts and branded residences, and Laheq Island, a private island focused on residential living, expected to open in 2028. Both are designed by Foster + Partners. The surrounding waters hold the world’s fourth-largest barrier reef system, with over 2,000 fish species, many unique to this region.

Nine resorts are already open, with the full lineup on Shura Island expected within the year. By 2030, the plan includes around 50 hotels, 8,000 rooms, and more than 1,000 homes. In February 2026, The Red Sea became the first place in the world to receive destination-wide verification from Forbes Travel Guide.

RSG oversees the entire project, including infrastructure, master planning, and hospitality. It also develops AMAALA, a second giga-project on the same coastline.

The Islands

Residential ownership at The Red Sea is focused on two islands, each at a different stage of development.

Real Estate Investment at The Red Sea

The Red Sea is an operating luxury resort destination where private residential ownership is integrated directly into the hospitality infrastructure. Every project sits within a PIF-backed masterplan running through 2030.

Several resorts are already open, the airport is operational, and Phase 1 infrastructure is complete. The destination is active, with existing guests already generating hospitality demand.

Yields and Returns

At The Red Sea, yields are driven by resort occupancy and short-stay demand — properties operate within hotel-managed rental programmes. Across Saudi Arabia, gross rental yields averaged 6.84% in Q1 2026 (Global Property Guide), with Jeddah at around 7.89% as a coastal benchmark.

Saudi Arabia has no personal income tax on rental income and no annual property holding tax for individuals. Transaction costs at purchase are approximately 10% for foreign buyers — a 5% Real Estate Transaction Tax (RETT) standard for all buyers, plus a 5% REGA disposal fee introduced under the 2026 foreign ownership law.

Living at The Red Sea

The Red Sea is developed across multiple islands and inland locations, with a range of dining, wellness, sports, and marine activities available across the area under a single masterplan.

The surrounding reef system is among the least disturbed in the region, with water visibility often exceeding 30 metres. Residents have direct access to diving, snorkelling, kayaking, sailing, and open-water swimming. On Shura Island, the Galaxea Diving Centre at the Four Seasons provides courses and guided dives for all levels.

On land, Shura Links features an 18-hole island golf course with waterfront holes, marina views, and sustainable maintenance using recycled water. Inland experiences include Desert Rock in the Hejaz mountains, along with access to UNESCO sites such as AlUla and Mada’in Saleh via Red Sea International Airport.

Island Access

The Red Sea has its own dedicated airport — Red Sea International Airport (RSI) — which opened for domestic flights in 2023 and international services in 2024. As of early 2026, it operates regular domestic flights from Riyadh and Jeddah, as well as international connections from Dubai, Doha, and Milan, with additional routes planned. Shura Island is accessible from the mainland in around 25 minutes via the 1.2 km bridge.

Other islands in the archipelago, including Ummahat Islands and Sheybarah Island, are reached by seaplane or chartered boat. Red Sea Global also operates Fly Red Sea, the country’s first seaplane service, using Cessna Caravan 208 aircraft for inter-island transfers. For the main Shura Island residential properties, the bridge connection makes road access straightforward.