Saudi Arabia has taken a major step toward its tourism expansion goals by approving 19 hospitality projects valued at SAR6.7 billion ($1.8 billion). The developments will add more than 3,000 hotel rooms and create over 17,000 jobs, as the Kingdom prepares to host Expo 2030 in Riyadh and the FIFA World Cup 2034.
The projects, spread across five high-potential destinations, are the first approvals under the Hospitality Investment Enablers (HIE) Programme. Launched jointly by the Ministry of Tourism and the Ministry of Investment, the initiative aims to attract private capital, expand accommodation capacity, and boost Saudi Arabia's competitiveness as a global tourism hub.
Incentives to lower costs and accelerate development
The HIE Programme offers targeted incentives to reduce operating costs for developers, improve project viability, and encourage investment in emerging destinations. By addressing financial and operational barriers, the government hopes to accelerate hotel development beyond established tourism centers like Riyadh and Jeddah.
Speaking at the announcement event in Riyadh, Minister of Tourism Ahmed Al-Khateeb emphasized that the program is about more than just adding rooms. "Expanding hospitality capacity is not simply about increasing room numbers," he said. "It is about unlocking investment opportunities, stimulating economic activity, and supporting sustainable tourism growth across emerging destinations."
Minister of Investment Fahad Al-Saif highlighted the importance of inter-ministerial collaboration. "We are working to improve the investment environment and simplify procedures for developers," he said. "The goal is to attract high-quality investment, generate employment, and increase local content while ensuring long-term economic benefits."
Coastal focus and economic impact
Approximately 40% of the planned hotel rooms will be located in coastal destinations, reflecting the Kingdom's push to develop its Red Sea and other waterfront assets. This aligns with broader efforts to diversify the tourism product and attract both international and domestic travelers.
According to government estimates, the 19 projects will contribute more than SAR2.4 billion ($640 million) annually to GDP by 2030. They are also expected to generate over SAR5.3 billion ($1.41 billion) in local content through demand for locally sourced goods, services, and construction materials.
The ripple effects will extend to food and beverage, retail, entertainment, and other tourism-related services, benefiting local suppliers and communities. This is part of the Kingdom's Vision 2030 strategy to diversify the economy and establish tourism as a major economic pillar.
The first hotel is scheduled to open by the end of 2026, with additional properties coming online in phases through 2029. The timeline aligns with the run-up to Expo 2030, which is expected to drive significant demand for accommodation and visitor services.
Industry observers note that the HIE Programme could serve as a model for other Gulf states looking to accelerate tourism infrastructure. As Saudi Arabia continues to open up, the focus on public-private partnerships is likely to attract international hotel operators and investors.
For travel professionals, the developments signal growing opportunities in the Saudi market. Business travel in the region has been on the rise, and the new supply will help meet demand. The coastal focus also aligns with recent luxury openings such as Rixos Murjana's overwater villas, indicating a broader trend toward high-end waterfront tourism.
As the Kingdom prepares for its mega-events, the hospitality sector is set to play a central role. With the first projects breaking ground soon, the next few years will be critical in shaping Saudi Arabia's tourism landscape.
