RIYADH: Saudi Arabia’s Tourism Development Fund, signed an agreement with investment solutions firm Derayah Financial to establish a SR100 million ($26 million) private close-ended equity fund.

It will be the first fund in the Kingdom to participate in the capital of small to medium-sized companies operating in the tourism sector, the Saudi Press Agency reported. The equity fund will target promising business opportunities in selective tourism areas across the Kingdom.

Derayah Financial will manage the new fund as it possesses wide expertise in assets and funds management in both the Kingdom and Gulf markets, according to a statement by Qusai Al-Fakhri, CEO of the TDF.

Aligning with the Kingdom’s economic growth, the fund is part of TDF’s efforts to promote tourism investment, Al-Fakhri added.

It is expected that the fund will increase investment diversity within the tourism sector through introducing new products and services and enhancing tourists’ experience in the Kingdom.