The signing ceremony. The signing ceremony.

Hilton Worldwide has signed a management agreement with Dar Al Bayan Real Estate Development Company for the first Hilton Hotels and Resorts property in Al Jubail, Saudi Arabia.

The 430-key Hilton Al Jubail is scheduled to open in the first quarter of 2014 and will be part of the company's major expansion plans in the KSA.

Dave Horton, global head, Hilton Hotels & Resorts said: "Hilton Al Jubail marks our entry into a new key city in the kingdom...Hilton Al Jubail will ably support the city's development into a business and tourism center."

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Construction of the 400-room and 30-suite chalets hotel on the Al Jubail corniche is scheduled to start early next year.

The property will feature two specialty restaurants, an all-day dining restaurant and a lobby lounge. The facilities will include four meetings rooms, two boardrooms, a 700 sq m ballroom, business centre, executive lounge, private beach, outdoor swimming pools and a health club.

Rudi Jagersbacher, area president, Middle East & Africa, Hilton Worldwide, added: "Al Jubail is of strategic importance to Hilton Worldwide's development plans in Saudi Arabia - its growing significance to the economy and its coastal location, makes it one of the most dynamic cities in the region."

Demand for the hotel will be driven by the industrial sectors with medium to long-stay business and meetings and conferences, as well the domestic and expatriate weekend vacation market.

Hilton Worldwide currently has six hotels operating and 13 hotels in the development pipeline in Saudi Arabia.