The Middle East and North Africa are entering a new golden era for travel and hospitality. A recent report released ahead of the Future Hospitality Summit in Dubai projects that the region’s hospitality market will surge from $310 billion in 2025 to more than $487 billion by 2032.
According to data from the World Travel and Tourism Council (WTTC), the sector will contribute nearly $367 billion to the Middle East’s economy this year while supporting around 7.7 million jobs. This remarkable growth reflects how the region has become a global magnet for investment — driven by government-led diversification plans and ambitious tourism projects.
Saudi Arabia and Egypt at the Forefront of Growth
Tourism is now at the heart of economic transformation in the Middle East. Saudi Arabia aims to attract 150 million tourists annually by 2030, while Egypt targets 30 million international visitors by 2028.
Amr El-Nady, Head of Hotels and Hospitality for the Middle East and Africa at JLL, highlighted that both nations are pushing to expand tourism’s contribution to GDP — with Saudi Arabia targeting 10 percent and Egypt 15 percent.
Major developments such as NEOM, the Red Sea Project, and AlUla in Saudi Arabia, alongside Ras Al Hekma and the New Administrative Capital in Egypt, are transforming the landscape and redefining the global hospitality experience.
Record-Breaking Hotel Expansion Across the Region
By mid-2025, the Middle East’s hotel construction pipeline hit a record high with 650 projects totaling over 161,000 rooms.
- Saudi Arabia leads with 342 projects and more than 92,000 rooms.
- Egypt follows with 127 projects and 28,000+ rooms.
- The UAE has 100 projects totaling 25,470 rooms, while Oman and Qatar continue steady expansion.
This surge in development is creating opportunities for global hotel operators and boutique brands alike — catering to the rising demand for luxury, cultural, and sustainable travel experiences.
El-Nady noted that this diversification allows hospitality brands to adapt to evolving traveler preferences while supporting long-term national visions for economic transformation.
Mega Projects and Global Events Boosting Demand
Saudi Arabia’s upcoming Expo 2030 and FIFA World Cup 2034 are already driving strong demand for real estate and hospitality infrastructure.
From January 2026, foreigners will be able to purchase real estate assets in specific zones across the Kingdom — a move expected to further attract global investors and accelerate hospitality growth.
According to JLL, the Middle East’s hotel investment environment remains robust, supported by high liquidity, consistent trading performance, and increasing tourist arrivals.
UAE’s Tourism Momentum Remains Strong
The UAE continues to outperform regional competitors, maintaining its position as a global hub for leisure and business travel. Investors remain optimistic about Dubai’s market, with JLL estimating that hotel transactions could surpass $1.2 billion this year.
Data from Cavendish Maxwell shows that Dubai’s hotel occupancy reached 81 percent in the first half of 2025 — a 2.5 percent increase from last year — while average daily rates rose 4.7 percent to $159.
Vidhi Shah, Director at Cavendish Maxwell, said, “Dubai continues to lead the world in hospitality innovation, setting new standards for safety, inclusivity, and connectivity.”
Oman: A Rising Star in Gulf Tourism
Oman is emerging as one of the most promising hospitality markets in the region. Tourism is projected to contribute 5 percent to GDP by 2030 and 10 percent by 2040, with hotel capacity expected to grow by 25 percent within the next five years.
The country plans to add 9,600 new rooms by 2030, including 2,600 by the end of 2025. Hotel revenues have already grown by 18 percent year-on-year, reaching $367 million, while hospitality employment rose nearly 5 percent to 10,800 jobs.
Oman’s focus on authentic, nature-driven experiences is attracting travelers looking for cultural depth and sustainable luxury.
Tourism Fuels Economic Diversification
Tourism’s economic importance continues to grow across the Gulf Cooperation Council (GCC). The GCC Statistical Center reported that the sector contributed $247.1 billion to the region’s economy in 2024 — a 32 percent increase compared to 2019.
Intra-GCC travel also saw a sharp rise, with 19.3 million visitors moving between member states. Meanwhile, the Saudi Central Bank reported that international tourists spent SR49.37 billion ($13.16 billion) in Saudi Arabia during the first quarter of 2025 — up 10 percent from the same period last year.
A Promising Future for MENA Hospitality
From futuristic destinations like NEOM to world-renowned hubs such as Dubai and Doha, the MENA region is redefining what global tourism looks like.
With governments continuing to invest in infrastructure, sustainability, and major international events, the hospitality sector is set for long-term growth and global recognition.
The message is clear — the Middle East is not just opening its doors to the world; it’s inviting the world to stay.
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