Pilot project CONCEPT
confidential
Building Red Sea Global Onchain
Unlocking capital for Saudi Arabia's regenerative tourism vision through real estate tokenization
This pilot concept serves as a strategic framework developed from external market research and current understanding of your business model.
The evolution of real estate capital
Transforming luxury resort capital formation
Real estate tokenization converts ownership into digital securities – the natural evolution from paper deeds to electronic registries, with programmable capabilities from capital formation to asset management. At its core, tokenization is an infrastructure layer that revolutionizes equity and value transfer.
For Red Sea Global's 50+ luxury properties, tokenization enables fractional ownership through regulated digital platforms. The industry standard is using SPVs and partnership structures to raise institutional capital. Tokenization works within these same familiar legal structures while delivering significantly improved investor benefits and flexibility that make your offerings more competitive.
The resort properties and regulatory compliance remain unchanged. What transforms is the infrastructure: automated ownership records, capital distributions, and reporting through licensed digital platforms – replacing manual spreadsheets and wire transfers with programmable systems.
Pilot concept: tokenized resort development at The Red Sea
Red Sea Global is opening 16 resorts through 2025 as Phase One of The Red Sea, with 34 additional properties planned through 2030. Traditional capital formation for luxury resort development involves lengthy fundraising cycles with limited investor pools, illiquid ownership structures, and high administrative overhead.
This pilot demonstrates how tokenizing a single resort property can accelerate capital formation, broaden your investor base to qualified international buyers through regulated digital securities platforms, and create a scalable model for funding your 50-resort portfolio while maintaining your regenerative tourism mission and operational standards.
Phase I
Resort selection & digital offering structure
Duration: 4-6 months
Select one resort property from The Red Sea's development pipeline in pre-construction or early construction phase.
Structure a digital securities offering for 25-40% of project equity through a special purpose vehicle, maintaining Red Sea Global's majority ownership and full operational control.
Work with Saudi legal counsel and international securities advisors to ensure compliance with applicable regulations.
Establish technical infrastructure through a regulated tokenization platform provider, including investor onboarding systems with identity verification managed by licensed transfer agents, and automated distribution agreements for resort revenues processed through digital custody providers.
Phase I
Resort selection & digital offering structure
Offering structure
Total project value
$120M (typical luxury resort in your portfolio)
Digital equity portion
30% ($36M)
Minimum investment
$50,000 (vs. $5M+ for traditional resort equity, enabled by fractional ownership structure managed through securities tokenization platforms with integrated investor registry)
Target investors
200-300 qualified investors (vs. 5-10 traditional, reached through digital securities platforms' existing investor networks of 5,000-20,000+ qualified accredited investors, plus your placement agent's traditional distribution channels)
Red Sea Global retains
70% equity, full management control, brand standards, regenerative tourism commitments
Digital security holder rights
Pro-rata share of net operating income distributed through automated agreements, no voting rights on operations
Phase I
Resort selection & digital offering structure
Expanding investor access
Lower minimums ($50K vs $5M+) open your offering to thousands of qualified accredited investors globally who want Saudi Vision 2030 exposure but cannot commit large sums to a single resort. Access to these investors happens through mutliple channels:
Regulated digital securities platform providers bring their existing investor networks of 5,000-20,000+ qualified investors actively seeking opportunities;
Your placement agent or licensed broker-dealer markets through traditional channels (family offices, wealth advisors, institutional investors)
Family offices and international real estate investors through the Onchain network.
This multi-channel approach delivers significantly higher conversion rates, reaching more qualified investors with fewer meetings, while a lower minimum opens access to a much broader pool of capital than traditional large-check requirements.
Phase I
Resort selection & digital offering structure
Capital formation
Phase I
Resort selection & digital offering structure
Technology & partner ecosystem
Platform providers
Regulated securities tokenization platforms (licensed as broker-dealers or alternative trading systems) handle investor registry, cap table management, and transfer processing
Legal infrastructure
Licensed transfer agents manage investor identity verification and compliance tracking; custody providers secure digital securities
Distribution channels
Placement agents and broker-dealers with existing investor networks provide access to 5,000-20,000+ qualified accredited investors per platform
Timeline
- 8 weeks: platform selection and investor portal setup
- 12 weeks: automated distribution system integration
- 16 weeks: legal structure (SPV formation, offering documents, regulatory filings)
Our platform vendor evaluation ensures the right provider(s) for your needs, anywhere from legal and compliance to platforms and technologies.
Phase II
Capital raise & resort construction
Duration: 4-6 months (capital raise) + 3 years (construction)
Launch the digital securities offering to qualified investors globally, with particular focus on GCC nationals, international investors seeking Saudi Vision 2030 exposure, and hospitality-focused family offices reached through your placement agent's network and the tokenization platform's investor base.
Process investor onboarding through automated identity verification managed by licensed transfer agents, digital security purchase processed through the platform, and delivery to investor digital accounts managed by custody providers.
As construction progresses, provide digital security holders with real-time project updates through the investor portal operated by your platform provider.
Phase II
Capital Raise & resort construction
Potential targets
250
total investors onboarded
$150K
average investment size
3-5
days from commitment to funds sent
60%
GCC
25%
Europe/Asia
15%
Americas
Identity verification processing: automated with 98% pass rate through licensed transfer agents, manual review only for exceptions
Phase II
Capital Raise & resort construction
Operational efficiency gains
Phase II
Capital Raise & resort construction
Construction phase benefits
Total capital raised
$36M in 4-6 months vs. 12-18 months traditional (accelerated through platform providers' investor networks and digital distribution infrastructure)
Administrative cost savings
$1.2M (vs. traditional raise, achieved through automated investor registry and distribution systems)
Earlier construction start
6-8 months acceleration
Higher investor engagement
Real-time construction updates via platform's investor portal (vs. quarterly calls)
Increased brand visibility
250 investor advocates vs. 5-10 traditional partners
We provide marketing support to reach qualified global investors through our network including introductions to family offices and international real estate investors.
Phase III
Resort opening and revenue distribution
Duration: 10-12 months
The resort opens and begins operations under Red Sea Global management or your selected international hospitality brand partner. Net operating income flows automatically to digital security holders on a quarterly basis through automated distribution agreements executed by the platform provider, with payments appearing in investor accounts within 24 hours through integrated custody provider systems. Digital security holders receive detailed performance reports through the investor portal showing occupancy rates, average daily rates, revenue per available room, and operating expenses, all managed through the platform's reporting infrastructure.
Phase III
Resort opening & revenue distribution
Business case for scaling
Red Sea Global has 40+ additional resorts to fund through 2030. Applying tokenization across the portfolio through institutional-grade tokenization platforms enables:
Capital formation acceleration
Open funding for 3-4 resorts simultaneously vs. sequential traditional raises (enabled by platform providers' ability to manage multiple offerings)
Investor base expansion
Build database of 2,000+ qualified global investors vs. repeating outreach for each project
Administrative efficiency at scale
Save $70M+ in capital formation and investor relations costs across portfolio (automated systems scale without proportional cost increases)
Brand differentiation
Position Red Sea Global as the most innovative and accessible luxury resort developer in the Middle East
Liquidity pathway
Create potential secondary trading after lock-up periods through regulated alternative trading systems for digital securities, increasing appeal of future offerings
Saudi Vision 2030 alignment
Demonstrate leadership in digital economy transformation and financial technology innovation
We provide strategic guidance on portfolio-wide tokenization rollouts across your remaining resort pipeline, introductions to secondary market platforms (regulated alternative trading systems for digital securities), ongoing partnership to refine the model based on pilot learnings and scale to future projects.
Phase III
Resort opening & revenue distribution
Cost savings estimate (3-year projection)
Phase III
Resort opening & revenue distribution
Pilot concept results
250 investor base reached
qualified investors across 15 countries (vs. 5-10 investors)
$ 150K average investment size
(enabled by $50K minimum vs. $5M+ traditional)
40% investor retention improvement
increase in investor satisfaction as secondary market access improves re-investment rates in future offerings
5% liquidity discount compression
vs. 20-30% for traditional illiquid private equity
$2K distribution processing cost
per quarter vs. $45K traditional (95% reduction through automated custody systems)
80% investor portal engagement
of investors logged in monthly to view real-time performance dashboards (vs. quarterly PDF reports)
100% compliance verification
automated KYC/AML tracking through transfer agent systems (vs. manual review requiring 120+ hours)
1% transaction fee collected
Platform infrastructure sees millions in annual secondary trading volume post-lock-up (traditional structure: 0% collected)
CASE STUDY
Trump International Hotel Maldives
The Trump Organization and Dar Global announced in late 2025 a landmark initiative to develop the world's first tokenized hotel development project. The $300 million luxury resort in the Maldives represents a significant milestone in applying tokenization to development-stage hospitality projects rather than completed assets. While the offering is still in regulatory approval with the SEC and has not yet launched fundraising, the announcement validates tokenization as a viable capital formation strategy for major luxury developers.
Platform: Dar Global in partnership with The Trump Organization
Asset class: Luxury island resort hotel development. Highly relevant to Red Sea Global's portfolio of ultra-luxury island resort destinations across The Red Sea and AMAALA, where you are simultaneously developing 16 resorts in phase one alone.
Current status: Announced November 2025, in SEC regulatory discussions, fundraising not yet launched, 80 ultra-luxury villas planned for late 2028 completion.
CASE STUDY
Onchain Real Estate accelerates blockchain adoption in the global property industry through events, strategic advisory, and ecosystem building.
Events
Immersive experiences where real estate meets blockchain and sparks real deals
Connect
Direct introductions to investors, technologists, regulators, and partners across our global network
Consultancy
Tokenization strategy, compliance frameworks, and go-to-market execution guidance
Media
Podcasts, research, and thought leadership amplifying voices in the onchain real estate space
Our annual Onchain Real Estate Summit in April will host asset managers, developers, family offices, and service providers all looking to learn and grow their business through tokenization and blockchain technologies.
Ready to bring Red Sea Global onchain?
Next steps
For Red Sea Global's ambitious portfolio of 50+ luxury regenerative tourism properties, tokenization offers a scalable path to funding your pipeline efficiently while building a global community of investors aligned with your sustainability mission.
We welcome the opportunity to discuss a pilot project with a clear roadmap to scale across your business through 2030.
Jacob Merdjanian
Co-Founder & Chief Growth Officer
Co-Founder & Chief Growth Officer
