Hovnanian M.E. Investments, LLC (KHME), a subsidiary of Hovnanian Enterprises, Inc. (NYSE: HOV) and the majority shareholder of Al Tahaluf Real Estate Company, CJSC, has signed a Memorandum of Understanding (MoU) with the Tourism Development Fund (TDF) and Emaar, The Economic City (EEC) to enable high-quality tourism investment and lifestyle-focused residential opportunities in King Abdullah Economic City (KAEC). The parties signed the agreement during the Future Real Estate Forum 2026 in Riyadh.
The MoU establishes a strategic framework for collaboration to advance globally competitive tourism, hospitality, and branded residential developments. It brings together KHME’s international experience in mixed-use, residential, and hospitality destinations, TDF’s mandate to accelerate tourism investment, and EEC’s vision for KAEC as a world-class coastal city.
The partnership will initially focus on a landmark development directly located on the Red Sea beaches and the Marina Canal within KAEC. Envisioned as a signature coastal destination, the project will feature a collection of branded private residences, two planned five-star hotels, and a central beach club, wellness and spa center serving as the hub of the community. This hub will bring together residents, tourists, and visitors through lifestyle amenities, leisure programming, and hospitality-driven experiences. The site represents one of the most iconic waterfront locations in KAEC and is positioned to become one of the most sought-after lifestyle and investment destinations in the Kingdom.
Under the MoU, the parties will collaborate to identify and promote additional tourism investment opportunities, support the development and management of tourism and lifestyle real estate assets, enable partnerships with investors and operators under flexible development and operating models, and make investment-ready sites available to accelerate project delivery.
Commenting on the signing, Qusai Al-Fakhri, Chief Executive Officer of the Tourism Development Fund, said: “This MoU reflects the Fund’s commitment to its role as a national enabler of the tourism sector, through aligning public- and private-sector efforts and building strategic partnerships that support the development of high-quality tourism projects and enhance the participation of local and international private-sector stakeholders in developing coastal destinations and all-inclusive beach resorts across Saudi Arabia.” He added: “As part of the tourism enablement of King Abdullah Economic City, the Fund contributes to enhancing its readiness to attract high-quality investments and global hospitality brands.”
Robert Hofmann, Chief Executive Officer of Al Tahaluf Real Estate, said: “This MoU marks an important step in advancing tourism investment and lifestyle residential developments in King Abdullah Economic City. This project on the Red Sea beaches and Marina Canal further strengthens our growing portfolio of lifestyle communities in KAEC. In addition to this new development, we anticipate launching Soleya at the Red Sea in early 2026, a collection of 340 private residences located between the Red Sea and the Royal Greens Golf Course. Together, these projects will create a true destination, and reinforcing KAEC’s position as a premier destination for global investors and residents alike.”
Commenting on the agreement, Abdulaziz Alnowaiser, Chief Executive Officer of Emaar, The Economic City, said: “The MoU between King Abdullah Economic City and the Tourism Development Fund, in collaboration with the U.S.-based company K. Hovnanian, reflects our strong commitment to supporting the growth of the tourism and hospitality sectors, which offer significant potential. These partnerships build on the city’s accelerated development momentum and its growing stature as an integrated coastal destination, with the aim of unlocking new investment opportunities across the city’s various sectors. Undoubtedly, flagship projects play a vital role in strengthening the city’s tourism offering, attracting visitors from global markets, reinforcing investor confidence, and supporting the long-term sustainability of tourism in line with national priorities and the city’s strategic objectives.”
This strategic collaboration advances EEC’s ambition to attract foreign direct investment and enable greater private sector participation. With its blend of world-class infrastructure, lifestyle-driven planning, and proximity to Jeddah and the western coast, KAEC continues to strengthen its position as a premier coastal lifestyle destination.