Red Sea Global has unveiled Laheq Island, its first major residential development. The 400-hectare island is slated to open in 2028 and will feature luxury homes, two resorts, a marina, and amenities including a golf course and retail souq.
Designed by Foster + Partners, the project centers on a circular structure called “The Ring.”
It’s unclear just how many residences this island will have, but we know The Red Sea as a whole will have upwards of 1,000 units by 2030.
Laheq may also serve a financial function. Sales of branded residences have proven to be a viable capital-raising model in nearby destinations like Dubai.
“This is about more than tourism,” said Red Sea Global CEO John Pagano in a statement. “We’re a vertically integrated real estate developer and operator, helping to deliver on Vision 2030.”
A Savills report indicates that the branded residential market has experienced a surge of 230% in the past decade, with over 50,000 additional units introduced. The Red Sea will be home to various branded residences, including those from the likes of Jumeirah, Hyatt, and Four Seasons.
Diriyah Gate — another Saudi giga-project — has used real estate sales to attract foreign investment. Diriyah has been selling properties that are branded with luxury hotel groups. Ritz-Carlton, Oberoi, Capella, Baccarat and other branded apartments and villas are all being sold right now.
“We had 120 Ritz-Carlton apartments, we kept a few in our pockets for important people, but we’ve sold over 110,” Diriyah CEO Jerry Inzerillo told Skift last October. “We just had the co-CEOs of Oberoi in Diriyah and we have 10 branded villas, eight of which are sold. Baccarat residences are on sale, and Capella is on sale. We’re doing well on the sales side. Those will probably be occupied by 2026.”
Buying property in Saudi Arabia is still difficult if you’re a foreigner. Unlike Dubai, where anyone can purchase property, you need to be a resident of Saudi Arabia or a GCC citizen to buy property.
As recently as this month, moves were being made to ease this process. The Ministry of Investment announced that foreign investors can own and sell real estate in Saudi Arabia to support their investment activities, provided the properties are outside Makkah and Madinah and not intended for commercial use.
The Red Sea had its first guests in 2023 and now has five hotels and a dedicated international airport in operation. Upon full completion by 2030, the broader destination will include 50 resorts across 22 islands and six inland sites.