\n\tRIYADH: Robust tourism growth is set to expand the hospitality market in the\u00a0Middle East and North Africa\u00a0from $310 billion in 2025 to more than $487 billion by 2032,\u00a0a new report showed.\u00a0<\/p>\n
\n\tReleased by the Future Hospitality Summit ahead of its gathering\u00a0in Dubai from Oct. 27 to 29,\u00a0the report cites data from\u00a0the World Travel and Tourism Council and\u00a0notes\u00a0that the travel and tourism sector is expected to contribute $367 billion to the Middle East economy this year while supporting 7.7 million jobs.\u00a0<\/p>\n
\n\tQuoting industry experts, it adds\u00a0that unprecedented expansion in hospitality, tourism, and infrastructure is reinforcing the region\u2019s position as a global magnet for investment.\u00a0<\/p>\n
\n\tDeveloping a robust tourism sector is crucial for oil-rich Middle Eastern countries as they pursue economic diversification and reduce reliance on crude revenues. Saudi Arabia aims to attract 150 million tourists annually by 2030, while Egypt targets 30 million international visitors by 2028.\u00a0<\/p>\n
\n\tAmr El-Nady, head of hotels and\u00a0hospitality Middle East and Africa and managing director, global hotel desk at JLL, said: \u201cBoth nations are seeking to significantly increase tourism\u2019s contribution to their gross domestic product, with Saudi Arabia targeting 10 percent and Egypt 15 percent.\u201d\u00a0<\/p>\n
\n\tHe added: \u201cThis strategic focus is driving substantial hospitality investment, with mega-projects like NEOM, the Red Sea Project, and AlUla in KSA, alongside Egypt\u2019s New Administrative Capital, Ras Al Hekma, South Med and Red Sea developments.\u201d\u00a0<\/p>\n
\n\tAccording to the report, international visitor spending in the Middle East is expected to reach nearly $194 billion this year, up nearly a quarter from 2019 pre-pandemic levels, while domestic spending is forecast to hit $113 billion.<\/p>\n
\n\tSaudi Arabia leads growth<\/p>\n
\n\tAs of the second quarter of 2025, the hotel construction pipeline in the Middle East reached an all-time high of 650 projects, totaling 161,574 rooms.<\/p>\n
\n\tAt the end of June, 337 projects with almost 86,500 rooms were under construction, and 147 projects are due to start by the second quarter of next year.\u00a0<\/p>\n
\n\tSaudi Arabia tops the Middle East\u00a0hotel construction chart, with more than 92,000 rooms across 342 projects, followed by Egypt with 127 projects and over 28,000 rooms.\u00a0<\/p>\n
\n\tThe UAE has 100 projects with 25,470 rooms, Oman 27 projects with 4,709 keys, and Qatar 16 projects with nearly 3,500 rooms.\u00a0<\/p>\n
\n\tEl-Nady said the surge in development is creating opportunities for both major international hotel operators and boutique brands to diversify their portfolios with concepts ranging from ultra-luxury desert resorts to culturally immersive heritage properties.\u00a0<\/p>\n
\n\t\u201cThe diversification strategy allows operators to cater to evolving traveler preferences while supporting the countries\u2019 objectives of transforming their economies through sustainable tourism growth and positioning themselves as premier global destinations,\u201d added El-Nady.\u00a0<\/p>\n
\n\tUpcoming global events such as Expo 2030 and the FIFA World Cup 2034 in Saudi Arabia are already boosting strong demand for real estate, including hospitality projects.\u00a0<\/p>\n
\n\tFrom January 2026, foreigners will also be able to purchase real estate assets in designated zones \u2014 a landmark development expected to further deepen investor appetite in the Kingdom.\u00a0<\/p>\n
\n\tJLL added that liquidity in the hotel investment landscape in the Middle East remains remarkably robust, underpinned by resilient hotel trading performance and increasing tourist arrivals.<\/p>\n
\n\tUAE maintains momentum\u00a0<\/p>\n
\n\tEl-Nady noted that the UAE\u2019s hospitality market continues to attract strong interest from regional and international investors seeking high-yielding, income-generating hotel assets and mixed-use developments.\u00a0<\/p>\n
\n\t\u201cLast year, JLL forecasted $1.2 billion in Dubai hotel transactions, and current market activity indicates we are on track to exceed this milestone, further demonstrating sustained investor confidence,\u201d he said.\u00a0<\/p>\n
\n\tCiting data from Cavendish Maxwell, a real estate advisory group, the report added that Dubai\u2019s hospitality market continues to outperform, with around 10,000 new rooms expected by 2027.\u00a0<\/p>\n
\n\tVidhi Shah, director, head of commercial valuation at Cavendish Maxwell, said that the occupancy level in hotels in Dubai rose to 81 percent in the first half of this year, representing a 2.5 percent rise compared to the same period in the previous year, while average daily rents reached $159, up 4.7 percent.\u00a0<\/p>\n
\n\t\u201cWith its hospitality sector continuing to lead the way in setting new benchmarks in safety, inclusivity and connectivity, Dubai remains a premium, global destination for leisure and business travelers, in turn opening up a plethora of new investment opportunities,\u201d said Shah.\u00a0<\/p>\n
\n\tThe report added that Oman is also increasingly becoming a hot spot for hospitality investment, with tourism expected to contribute 5 percent to GDP by 2030 and 10 percent by 2040.\u00a0<\/p>\n
\n\tOman\u2019s hospitality industry is also expected to overtake transport and logistics to become the country\u2019s second most important industry after hydrocarbons.<\/p>\n
\n\tData from Cavendish Maxwell revealed that Oman is set to boost hotel room inventory by 25 percent by 2030, with 9,600 new keys on the way in the next five years, and 2,600 by the end of 2025.\u00a0<\/p>\n
\n\tThe report further said that hotel revenues in Oman rose more than 18 percent year on year to $367 million.\u00a0<\/p>\n
\n\tThe strong performance also led to almost 5 percent growth in Oman\u2019s hospitality employment, with 10,800 people now working in the industry.<\/p>\n
\n\t\u201cThe Middle East\u2019s continued growth in tourism and hospitality is being further boosted by various government campaigns and initiatives across the region to encourage investment, international visits and business set up,\u201d the report concluded.\u00a0<\/p>\n
\n\tIn September, a report by GCC Statistical Center said that tourism across the Gulf Cooperation Council contributed $247.1 billion to the region\u2019s economy in 2024, marking a nearly 32 percent increase compared with 2019.\u00a0<\/p>\n
\n\tThe center further said that intra-GCC travel experienced a sharp rebound, rising 52 percent over the same period, with 19.3 million visitors traveling between member states.<\/p>\n
\n\tIn July, another report by the Saudi Central Bank revealed that international tourists spent SR49.37 billion ($13.16 billion) in Saudi Arabia during the first quarter of 2025, a 10 percent increase compared to the same period last year.\u00a0<\/p>\n
\n\tThe bank added that this rise pushed the Kingdom\u2019s travel account surplus to SR26.78 billion, up 11.7 percent year on year, underlining the sector\u2019s growing contribution to the country\u2019s non-oil economy.<\/p>\n","protected":false},"excerpt":{"rendered":"
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