The fisheries of the Farasan Islands (Saudi Arabia, Red Sea) are described. The fishery resources are exploited by artisanal, investor and industrial sectors. The artisanal fishery consists mostly of line fishing around coral reefs and about half the fishing effort occurs within the proposed marine protected area (MPA). Activities by investor and industrial fisheries sector include line fishing, gill netting, fish trapping and demersal fish trawling. The relevant resource management issues that need to be addressed as part of a planning study for the establishment of a MPA are also presented. The major issues are: (1) the decline in the catch of the artisanal fishery; (2) by catch and habitat degradation; (3) sustainability in the collection of giant clams and pearl shells; and (4) the lack of information such as the importance of MPA to fisheries, stock assessment and catch and effort data. A significant role in the future management of the fisheries has been identified for the traditional representatives of the artisanal sector.