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The joint announcement in Riyadh, attended by Tourism Minister Ahmed Al-Khateeb and Investment Minister Fahad Al-Saif, unveiled the initial batch of approvals under a program aimed at accelerating private-sector participation in targeted tourism areas, according to a Saudi Press Agency report. The projects are projected to generate an annual direct contribution exceeding SAR2.4 billion to gross domestic product by 2030 while producing more than SAR5.3 billion in local content through demand for Saudi-sourced goods, services and materials. Officials positioned the initiative as a key step in expanding the kingdom’s hospitality capacity ahead of Expo 2030 and the 2034 FIFA World Cup.
The Hospitality Investment Enablers Program, a collaboration between the Ministry of Tourism and the Ministry of Investment, offers targeted incentives to lower operating costs and enhance project viability in selected locations. Al-Khateeb said the program reflects a long-standing commitment to enabling private-sector investment and addressing growing tourism demand. Al-Saif described it as a model of government collaboration that strengthens private participation, stimulates high-quality investment and simplifies procedures for investors.
Approved developments will add more than 3,000 hotel rooms to the kingdom’s inventory, with approximately 40 percent located in coastal destinations to support sun-and-sea offerings. The projects will also create opportunities in food and beverage, retail, entertainment and other visitor services that benefit local businesses and enrich the overall experience. Participating companies include BSF Capital, Sedal, Rikaz and Jenan, the ministries listed.
All 19 projects are scheduled to open between the end of 2026 and 2029, with the first unit coming online before next year concludes. The five destinations involved are Al-Baha, Al-Ahsa, Jeddah, Asir and the Eastern Province, chosen for their infrastructure and alignment with regional development plans. This first tranche forms part of a wider Tourism Investment Enablers framework launched in 2024.
Saudi Arabia accounts for about half of the GCC and North Africa’s hotel pipeline with roughly 110,000 rooms in development, an HVS assessment reported by Arabian Business found. That regional total stands at 200,000 rooms, equivalent to a 27 percent increase in existing supply and around $90 billion in investment, with more than 55 percent of the new rooms due by 2030. The kingdom’s pipeline spans major sites including Riyadh, Makkah, Madinah, Diriyah, NEOM and the Red Sea.
The Ministry of Tourism aims to expand the country’s hotel room count to more than 550,000 by 2030 while targeting 150 million annual visitors, according to the 2025 Vision 2030 report. Tourism spending reached approximately SAR304 billion in 2025 as the sector’s contribution to the economy continues to grow. These latest approvals add momentum to efforts that have already drawn around 50 international operators since 2020.
