State-backed developer Red Sea Global is set to take responsibility for the Sindalah island resort project, marking a significant effort by Saudi Arabia to revive a development that has faced multiple setbacks under the country's Vision 2030 economic diversification programme. 
Speaking on the sidelines of a Saudi business conference in Rome, Red Sea Global CEO John Pagano confirmed that while the formal handover process had not yet been completed, the company would assume responsibility for the island once the transfer takes place. He said the developer would then evaluate the project, determine the work required to complete it and focus on bringing the destination into operation. 
The move highlights Pagano's growing role within Saudi Arabia's sovereign wealth fund ecosystem. Red Sea Global has built a reputation for delivering large-scale tourism projects and is regarded as one of the more successful developers involved in the kingdom's tourism expansion strategy. 
Sindalah was originally conceived as a flagship luxury destination within the NEOM megaproject and involved investments running into billions of dollars. Although the island hosted an exclusive launch event attended by celebrities and superyacht owners in 2024, it has never officially opened to visitors. 
According to sources familiar with the project's operations, the launch exposed shortcomings in construction quality and finishing work, creating embarrassment for senior officials overseeing the development. The issues became a major talking point following the event and added to concerns surrounding project execution. 
Sources indicated that the rush to meet delivery targets contributed to mistakes during the final stages of construction. The problems emerged shortly before the removal of former NEOM Chief Executive Nadhmi Al-Nasr from his position. One source familiar with the matter said unrealistic deadlines had played a significant role in the project's difficulties. 
Pagano also suggested that overly ambitious delivery schedules had affected the development. He stated that the project should not have opened in its existing condition and acknowledged that the timeline expectations were not realistic. 
The challenges at Sindalah extend beyond construction quality. Sources said the island's marina allows waves to enter for much of the year, creating difficulties for boats using the facility. They also pointed to strong seasonal winds that frequently affect the island, adding that these conditions were not fully accounted for during the planning and assessment stages before construction began. 
The weather conditions had previously drawn attention when Saudi Crown Prince Mohammed bin Salman showcased Sindalah during a 2023 interview with Fox News. During the visit, strong winds on the island were visibly noticeable, with interviewer Bret Baier later commenting on the windy conditions. 
The transfer of Sindalah to Red Sea Global comes at a time when Saudi Arabia is reassessing several major Vision 2030 projects. In recent years, authorities have increasingly focused on developments that can generate economic returns while adjusting timelines and ambitions for some of the kingdom's largest projects. 
NEOM's flagship project, The Line, was originally planned as a 170-kilometre linear city but has since undergone significant revisions, with completion no longer expected by 2030. Construction activity related to the Mukaab project in Riyadh has also reportedly been paused as investment priorities shift towards projects with clearer commercial outcomes. 
At the same time, Red Sea Global continues to expand its tourism portfolio. Pagano said the company currently operates 14 resorts along the Red Sea coast. The number is expected to increase to 25 by the end of August and reach 27 before the end of the year. 
The developer has also started broadening its hospitality offering by introducing resorts priced between USD 400 and USD 500 per night. This follows criticism that its initial ultra-luxury properties, which were priced at around USD 2,000 per night, were accessible only to a limited segment of travellers. 
Pagano attributed Red Sea Global's delivery record to its strategy of building internal expertise rather than depending heavily on external contractors. He explained that the company chose to develop in-house capabilities and retain technical knowledge within the organisation, instead of relying on third parties whose experience would leave once projects were completed. 
His growing influence within Saudi Arabia's development sector was further highlighted last year when he was granted Saudi citizenship, a move widely seen as recognition of his contribution to the country's tourism and infrastructure ambitions. 
Source Reuters