Saudi Airlines Catering Company (SACC) has entered into a deal worth SR6.3bn ($1.6bn) with Red Sea Global (RSG) to provide catering and facilities management at hotels and resorts.

Under the deal, SACC will design, build, operate and transfer a central production unit to offer hotel and resort catering and facilities management for RSG employees.

RSG employees based at other facilities and sectors will also benefit from the deal.

The deal, valid for 20 years, is expected to positively contribute to SACC’s accounts by Q3 2025.

It will also help the firm increase its cash flow and expand its business.

In a filing with the Saudi stock exchange, SACC said: “This contract is part of the strategic plan implemented by the company to attract investment opportunities in new industrial and tourist cities, noting that this contract will be subject to The Red Sea Global Board of Directors’ final sign off.”

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In a separate development, SACC has reached a deal, valued at SR2.7bn ($720m), with RSG to provide laundry services at resorts.

As part of the deal, SACC will design, build, operate and transfer a central laundry service for hotels, resorts and other facilities at RSG’s development sites.

The deal is valid for 20 years and awaits final approval from RSG’s board of directors.

It aims to deliver a contribution to SACC accounts by the third quarter of 2025.