MARKET OUTLOOK

Saudi Arabia’s Vision 2030 is a unique transformative economic and social reform blueprint that is opening the Kingdom to the world and emphasizes travel, tourism, hospitality, retail, and banking sectors.

The travel and tourism industry is becoming a key source of revenue for the country, with the government aiming to attract 150 million visitors by 2030 and make it a leading destination for tourists. To meet this demand, the government is investing billions in hotel construction, infrastructure development and investment opportunities, resulting in US$ 1.2 trillion worth of giga-projects across the country.

This increased demand has created opportunities for investment in the hospitality industry and its support services, resulting in a growing number of new hotels opening in key cities, many under international brands or through partnerships with domestic groups.

Read more to know about opportunities in Saudi Arabia

FAST FACTS:

Saudi Arabia plans for 320,000 new hotel rooms by 2030 to meet surging tourism demand.
This is the world's fastest-growing hospitality industry - between 2022 and 2026, the Kingdom’s hospitality industry is forecasted to reach US$ 23.1 billion, the highest in the GCC region.
Saudi Arabia’s Food and Beverage (F&B) market is the largest and most attractive in the Middle East valued at US $45 billion. The F&B market is predicted to grow at a rate of 6% over the next five years.
Of the new hotel room supply, 66 per cent will be in the 'luxury', 'upper upscale' and 'upscale' categories. By 2030, this segment will 'expand further to 72 per cent of the market, equating to 251,500 hotel rooms', Knight Frank report notes.

Opportunities that lie ahead of you

Jeddah Economic City

The development of US $20 billion Jeddah Economic City will consist of a skyscraper that is surrounded by residential units, commercial space, office area, education vicinity, entertainment facilities, and hotels.

King Abdullah Economic City

This US $100 billion project is located in Makkah Province. The development consists of 3,500 units including hotels, apartments, towers, offices, suites and villas, besides shopping malls and a golf course.

Jeddah Central

Jeddah Central, also known as New Jeddah Downtown, is a residential and commercial development valued at US $20.4 billion. Spread over 5 million sqm, the project comprises 12,000 housing units, retail and office spaces, hotel and hospitality facilities.

Amaala

The US $6 billion project entails the construction of a new luxury destination located in Tabuk, over an area of more than 3,800 sq km. The scope of work includes more than 2,500 hotel keys, 800 residential villas, 200 retail establishments, and sports facilities.

The Red Sea Project

Located in Tabuk, this US $10 billion project calls for the construction of a mega-resort covering more than 50 islands and 34,000 sqm. The development includes hotels, luxury residential units, all logistical infrastructures, and sea transport hubs.

NEOM

Neom is an ambitious megacity valued at US $500 billion. Spanning 10,200 square miles, its plans include a floating industrial complex, global trade hub, luxury island and linear city. It promises to be one of the most innovative cities in modern history.

Get insights into Saudi Arabia's Hospitality Sector

Saudi Arabia is the world’s fastest-growing market, actively seeking quality global and local brands to meet the escalating demand for high-value projects within the Kingdom.

Our hospitality market report will be available in May and will give you key insights into the market size and potential opportunities.