Saudi Arabia has approved the first batch of 19 hospitality projects expected to attract SAR6.7 billion ($1.8 billion) in investment and create more than 17,000 jobs across five high-potential tourism destinations, as the Kingdom seeks to expand its tourism infrastructure ahead of major international events.
The projects were announced by the Ministry of Tourism and
the Ministry of Investment at a joint event in Riyadh, attended by Tourism
Minister Ahmed Al-Khateeb and Investment Minister Fahad Al-Saif, under the
Hospitality Investment Enablers (HIE) Programme, reported Saudi Press Agency
(SPA).
The initiative provides targeted incentives to reduce
operating costs for approved hospitality developments, improve their financial
viability and encourage private-sector investment in selected destinations.
Al-Khateeb said: “The Hospitality Investment Enablers
Program reflects our long-standing commitment to enabling private-sector
investment and responding to the Kingdom’s growing tourism demand. By expanding
hospitality capacity in high-potential destinations, we are doing more than
adding rooms. We are unlocking new investment opportunities, stimulating
economic activity across tourism destinations, and supporting sustainable
tourism growth. The first approved projects reflect investor confidence in the
opportunities offered by Saudi Arabia’s tourism sector and the role of
private-sector partnerships in turning these opportunities into projects that
contribute to destination development."
The projects are expected to contribute more than SAR2.4
billion annually to gross domestic product by 2030 and generate over SAR5.3
billion in local content through demand for locally sourced goods, services and
materials.
Al-Saif said: “The Hospitality Investment Enablers Program
is a model of government collaboration to develop enablers that strengthen
private-sector participation, stimulate high-quality investment and develop the
attractiveness of investment opportunities in promising tourism destinations.
In partnership with the Ministry of Tourism and other relevant entities, we are
working to strengthen the investment environment and simplify the investor
journey, helping turn opportunities into sustainable projects, maximize their
economic and developmental impact, create jobs and increase local
content."
The developments will add more than 3,000 hotel rooms to
Saudi Arabia’s accommodation capacity, with approximately 40% planned for
coastal destinations to strengthen the Kingdom’s sun-and-sea tourism offering.
Beyond accommodation, the projects are expected to generate
business opportunities across food and beverage, retail, entertainment and
other visitor services, supporting local enterprises and economic activity in
participating destinations.
The first project is scheduled to open by the end of 2026,
with further developments becoming operational over the following years and the
final projects expected to open in 2029.
The expansion forms part of Saudi Arabia’s broader tourism
ambitions under Vision 2030, increasing hospitality capacity ahead of Expo
2030, the FIFA World Cup 2034 and other major international conferences and
exhibitions.