Arab investors plan to set up an investment bank with a capital of around 1 billion Saudi Arabian riyals ($267 million) to invest in tourism projects in the region, one investor said on Sunday. "The launch of the bank is planned after summer or towards the end of this year. The capital is going to be more than 1 billion riyals, mainly owned by Gulf investors," said Mohammed Bugais, chief executive of Bahrain-based Investors Bank.
"There will be an investment fund to raise the required capital from investors, through a private placement or a public subscription afterwards," he told Reuters in an interview.
Bugais said the new bank, likely to be based in Saudi Arabia, would finance tourism projects in Arab countries, including hotels and resorts, as well as spending on related infrastructure like laying new roads.
"We proposed the initiative during the meeting of Arab tourism ministers meeting in Cairo last month and got their approval for it," Bugais said.
He said goals included making Arab countries an attractive alternative for tourists.
"There isn't a bank today specialised in financing tourism projects in the Arab world. If we are successful in creating a reliable tourism infrastructure, this will benefit both the sector as well as the involved investors."
Gulf Arab states are investing heavily in tourism to diversify their economies away from oil export revenues.
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