Post by : Saif Rahman

The hospitality and tourism sector in the MENA region is on an unprecedented growth trajectory. A new report unveiled prior to the Future Hospitality Summit in Dubai indicates that the region's hospitality market is forecasted to rise from $310 billion in 2025 to over $487 billion by 2032.

This substantial growth is attributed to heightened tourism interest, ongoing hotel development, and significant government initiatives aimed at luring visitors from around the globe. The World Travel and Tourism Council (WTTC) estimates that travel and tourism will contribute about $367 billion to the Middle Eastern economy this year and generate 7.7 million jobs across the region.

Tourism Drives Economic Diversification

To decrease reliance on oil, several Middle Eastern nations are aiming to diversify their economies by boosting tourism. Saudi Arabia and Egypt are at the forefront of this initiative. Saudi Arabia aspires to attract 150 million tourists annually by 2030, while Egypt is targeting 30 million international visitors by 2028.

Experts believe this tourism push will result in significant economic transformation. Amr El-Nady, head of Hotels and Hospitality for the Middle East and Africa at JLL, mentions that both countries are working to improve tourism’s contribution to their national income—Saudi Arabia aims for 10 percent of its GDP, and Egypt is targeting 15 percent.

Significant hospitality investments are underway, including Saudi Arabia's NEOM, the Red Sea Project, and AlUla, along with Egypt’s New Administrative Capital and South Med developments. These mega-projects are set to elevate both nations as prime global tourist hotspots.

Surge in Visitor Spending

The report notes a remarkable increase in spending by international travelers in the Middle East. Visitor expenditures are set to reach $194 billion this year, marking a nearly 25 percent increase compared to pre-pandemic levels in 2019. Domestic expenditure is also on the rise, projected to hit $113 billion.

Saudi Arabia Leads in Hotel Expansion

Saudi Arabia currently tops the region in new hotel projects. As of mid-2025, there are 650 hotel projects in development across the Middle East, amassing over 161,000 rooms.

Of those, 342 projects with 92,000 rooms are situated in Saudi Arabia, followed by Egypt with 127 projects (28,000 rooms) and the UAE with 100 projects (25,470 rooms). Oman and Qatar are also expanding their hotel capacities to match the rising demand.

El-Nady states that this expansion opens doors for both global hotel brands and boutique operators. "Developers are constructing everything from luxury desert lodges to traditional heritage accommodations," he explains. "This caters to evolving traveler preferences and underpins long-term economic goals."

International Events Boost Growth

Forthcoming international gatherings such as Expo 2030 and the FIFA World Cup 2034, hosted by Saudi Arabia, are anticipated to draw millions to the region. These events will also stimulate real estate and hospitality investment.

Starting January 2026, property ownership will open to foreigners in designated areas of Saudi Arabia, a move believed to attract even more interest in the thriving hospitality real estate market.

According to JLL, the hotel investment landscape remains robust due to increasing tourist inflows and strong operational performance within the region.

UAE Remains a Dominant Force

The United Arab Emirates stands as a key player in the regional hospitality market. Dubai continues to attract both business and leisure visitors.

Cavendish Maxwell reports that hotel occupancy in Dubai hit 81 percent in the first half of 2025—a 2.5 percent increase from the previous year—with average daily room rates rising to $159, an uptick of nearly 5 percent.

Around 10,000 new hotel rooms are slated to debut in Dubai by 2027, reinforcing investor confidence in the city’s tourism sector.

Vidhi Shah, Director at Cavendish Maxwell, stated, "Dubai is leading the global hospitality segment, offering unparalleled safety, inclusiveness, and superior connectivity that keeps it at the forefront for international visitors and investors."

Oman's Flourishing Tourism Scene

Oman is rapidly gaining traction as a travel destination. Tourism is projected to contribute 5 percent to Oman’s GDP by 2030 and 10 percent by 2040, positioning it as the country’s second-largest industry after oil.

Last year, Oman’s hotel revenues surged by over 18 percent, reaching $367 million, while hospitality employment rose by 5 percent, with nearly 10,800 individuals now employed in the sector.

Oman plans to expand its hotel room inventory by 25 percent by 2030, adding around 9,600 new rooms, including 2,600 rooms by the end of 2025.

The Future of Regional Tourism

The Future Hospitality Summit report concludes that the MENA region’s hotel and tourism landscape is entering a golden age. Government schemes in Saudi Arabia, the UAE, Egypt, and Oman are facilitating investments, improving infrastructure, and welcoming unprecedented tourist influx.

According to the GCC Statistical Center, tourism in Gulf nations contributed $247 billion to the regional economy in 2024—an impressive 32 percent growth compared to 2019. Travel between GCC countries has surged, with 19.3 million individuals visiting neighboring states.

A report from the Saudi Central Bank confirmed that international tourists spent more than $13 billion in Saudi Arabia in the first quarter of 2025, a 10 percent increase from the preceding year.

Experts assert that this rapidly expanding tourism sector will create millions of jobs, accelerate economic diversification, and redefine the MENA region as one of the globe's premier travel, culture, and hospitality destinations.