Saudi Arabia’s hospitality sector recorded a 48% increase in international visitors in the second quarter of 2025 compared to the same period last year, cementing its growing status as one of the world’s most dynamic tourism destinations. According to a new report by CBRE, the surge is driven by a blend of leisure, cultural, and religious tourism, alongside continued infrastructure investments ahead of major upcoming events like Expo 2030 and global sporting tournaments. The kingdom's tourism strategy, aligned with Vision 2030, is fast transforming its urban and cultural landscape.
The strong inflow of visitors is also accelerating hotel development, particularly in Riyadh, where new project announcements and brand entries—like IHG’s debut of EVEN Hotels—are reshaping the market. The expanding pipeline is expected to further boost capacity, diversify offerings, and meet the rising demand for both premium and midscale accommodation.
In tandem with the tourism surge, regulatory changes in Saudi Arabia’s real estate sector are helping attract foreign investment and encourage long-term population growth. New policies now allow foreign residents to participate in homeownership, marking a pivotal shift in the kingdom’s economic strategy. “By welcoming foreign investment, we anticipate a transformative shift in inbound capital over the next five years,” said Matthew Green, Head of Research MENA at CBRE. “This will not only support ambitious FDI targets but also drive diversification of the non-oil economy and enhance economic stability.”
