Saudi Arabia has approved 19 hospitality projects worth SAR6.7 billion ($1.8 billion), paving the way for more than 3,000 new hotel rooms and over 17,000 jobs as the Kingdom accelerates tourism infrastructure development ahead of Expo 2030 and the FIFA World Cup 2034. The projects, spread across five high-potential tourism destinations, represent the first batch of investments approved under the Kingdom's Hospitality Investment Enablers (HIE) Programme, which aims to attract private-sector capital, expand accommodation capacity and strengthen Saudi Arabia's competitiveness as a global tourism destination.
The approvals were announced at a joint event in Riyadh by the Ministry of Tourism and Ministry of Investment, attended by Ahmed Al-Khateeb, Saudi Arabia's Minister of Tourism, and Fahad Al-Saif, Saudi Arabia's Minister of Investment. The programme offers targeted incentives designed to reduce operating costs for hospitality developers, improve project viability and encourage investment in emerging tourism destinations. By addressing financial and operational barriers, the initiative seeks to accelerate hotel development beyond the Kingdom's established tourism centres.
A significant portion of the new investment will support Saudi Arabia's growing coastal tourism offering, with approximately 40% of the planned hotel rooms located in coastal destinations. The move reflects the Kingdom's increasing focus on developing its Red Sea and other waterfront tourism assets as it seeks to attract a broader mix of international and domestic travellers. Beyond expanding accommodation capacity, the 19 projects are expected to generate substantial economic benefits. According to government estimates, the developments will contribute more than SAR2.4 billion ($640 million) annually to Saudi Arabia's gross domestic product by 2030, while creating over SAR5.3 billion ($1.41 billion) in local content through demand for locally sourced goods, services and construction materials.
The investments are also expected to create opportunities for businesses operating across food and beverage, retail, entertainment and other tourism-related services, extending the economic benefits of hospitality development to local suppliers and communities. Ahmed Al-Khateeb, Saudi Arabia's Minister of Tourism, said the programme demonstrates the government's commitment to enabling private-sector investment while responding to growing tourism demand. He emphasised that expanding hospitality capacity is not simply about increasing room numbers, but also about unlocking investment opportunities, stimulating economic activity and supporting sustainable tourism growth across emerging destinations. He added that the first approved projects demonstrate investor confidence in Saudi Arabia's tourism sector and the importance of public-private partnerships in bringing new developments to market.
Fahad Al-Saif, Saudi Arabia's Minister of Investment, highlighted the importance of government collaboration in improving the investment environment and simplifying procedures for developers. He said the programme aims to attract high-quality investment, generate employment opportunities and increase local content while ensuring that tourism developments deliver long-term economic benefits. The first hospitality project is scheduled to begin operations by the end of 2026, with additional properties opening in phases over the following three years. The final projects in this initial batch are expected to become operational by 2029. The expansion comes as Saudi Arabia prepares for a series of major international events, including Expo 2030 in Riyadh and the FIFA World Cup 2034, both of which are expected to drive substantial demand for accommodation, transport and visitor services.
The hospitality investment programme forms part of the Kingdom's wider Vision 2030 strategy to diversify its economy, strengthen private-sector participation and establish tourism as a major contributor to economic growth and employment.
