The project is being spearheaded by Red Sea Global, a developer owned by Saudi Arabia’s $1 trillion sovereign wealth fund. Laheq Island is Red Sea Global’s first fully residential development and forms part of a broader $27 billion tourism and real estate initiative aimed at transforming the Saudi coastline.
Properties on the island are aimed at the ultra-wealthy, with apartments starting at 5.5 million riyals (around $1.5 million) and villas reaching up to 150 million riyals ($40 million). Red Sea Global hopes these high-end developments will attract foreign investors, especially as Saudi Arabia has only recently begun opening its property market to international buyers.
This push aligns with broader national strategies to diversify the economy and reduce reliance on oil revenue. Officials are banking on affluent global buyers purchasing second or third homes, particularly those drawn to the region by tourism or religious pilgrimage, such as the annual Hajj.
While Laheq Island is progressing quickly, it contrasts with delays seen in other large-scale “giga projects,” like the futuristic city of Neom. Nevertheless, attracting foreign residents on a broad scale remains challenging due to the nascent state of the Saudi real estate market and the kingdom’s conservative social norms, including strict laws and the prohibition of alcohol.
Still, the Red Sea developments represent a bold bet on tourism and foreign capital.
