The value of Mena’s hospitality market is set to grow from $310 billion in 2025 to more than $487 billion by 2032, according to data released ahead of the Future Hospitality Summit – FHS World, Madinat Jumeirah Dubai, October 27-29.
The travel and tourism sector is projected to contribute
$367 billion to the Middle East economy and support 7.7 million jobs this year,
says the World Travel and Tourism Council.
International visitor spending is expected to reach nearly
$194 billion, up nearly a quarter from 2019, pre-pandemic levels, with domestic
spending forecast to hit $113 billion.
As of Q2 2025, the Middle East’s hotel construction pipeline
reached an all-time high of 650 projects with 161,574 rooms.
At the end of June, 337
projects, with almost 86,500 rooms, were under construction, with 147 projects
due to start by Q2 2026.
Saudi Arabia tops the Middle Eastern hotel construction
chart, with more than 92,000 rooms across 342 projects.
Next is Egypt with 127 projects and a record-high room count
of over 28,000, followed by the UAE with 100 projects (25,470 rooms); Oman with
27 projects (4,709 keys) and Qatar with 16 projects (nearly 3,500 rooms).
The unprecedented hospitality, tourism and infrastructure
expansion reinforces the region’s position as a global magnet for investment,
say experts.
Amr El Nady, Head of Hotels & Hospitality MEA and
Managing Director, Global Hotel Desk at Jones Lang Lasalle, said: “Saudi Arabia
is targeting 150 million tourist arrivals annually by 2030, while Egypt aims for
30 million international visitors by 2028. Both nations are seeking to
significantly increase tourism's contribution to their GDP, with KSA targeting
10% and Egypt 15%. This strategic focus is driving substantial hospitality
investment, with mega-projects like NEOM, The Red Sea Project, and AlUla in KSA,
alongside Egypt's New Administrative Capital, Ras Al Hekma, South Med and Red
Sea developments.
“The surge in development creates opportunities for both
major international hotel operators and boutique brands to diversify their
portfolios by introducing new concepts ranging from ultra-luxury desert resorts
to culturally immersive heritage properties. The diversification strategy allows
operators to cater to evolving traveller preferences while supporting the
countries' objectives of transforming their economies through sustainable
tourism growth and positioning themselves as premier global destinations.”
JLL added that liquidity in the hotel investment landscape
remains remarkably robust, underpinned by resilient hotel trading performance
and increasing tourist arrivals. Performance data shows year on year growth in
terms occupancy and ADR metrics, reflecting the sector's operational strength
and market confidence.
Amr El Nady added: “This strong performance has
significantly enhanced appetite from regional and international investors –
from high-net-worth individuals to institutional players – all seeking
high-yielding, income-generating hotel assets and mixed-use developments,
particularly across the UAE market. The region's investment appeal continues to
attract diverse capital sources drawn to its strategic positioning and growth
potential.
“Last year, JLL forecasted $1.2 billion in Dubai hotel
transactions, and current market activity indicates we are on track to exceed
this milestone, further demonstrating sustained investor confidence.”
In the UAE, Dubai’s hospitality sector – which has around
10,000 new rooms on the way between now and 2027 – continues to deliver an
outstanding performance, according to the hospitality division at leading real
estate advisory group and property consultant, Cavendish Maxwell.
“Occupancy levels rose to 81% in H1 2025, an increase of
2.5% year-on-year,” said Vidhi Shah, Director, Head of Commercial Valuation at
Cavendish Maxwell. “Meanwhile ADR across Dubai’s hotels and resorts reached
$159, up 4.7%. With its hospitality sector continuing to lead the way in
setting new benchmarks in safety, inclusivity and connectivity, Dubai remains a
premium, global destination for leisure and business travellers, in turn
opening up a plethora of new investment opportunities.”
Oman is also increasingly becoming a hot spot for
hospitality investment, with tourism expected to contribute 5% to GDP by 2030
and 10% by 2040 – and overtake transport and logistics to become the country’s
second most important industry after hydrocarbons.
Oman is set to boost hotel room inventory by 25% by 2030,
with 9,600 new keys on the way in the next five years, and 2,600 by the end of
2025, recent insight from Cavendish Maxwell shows. In H1 this year, more than
1.1 million guests checked in to 3-5 hotels, where revenues rose more than 18%
to $367 million. The strong performance led to almost 5% growth in hospitality
employment, with 10,800 people now working in the industry.
The Middle East’s continued growth in tourism and
hospitality is being further boosted by various government campaigns and
initiatives across the region to encourage investment, international visits and
business set up.
In KSA, upcoming global events like Expo 2030 and the FIFA
World Cup 2034 are boosting already strong demand for real estate, including
project in the hospitality sector. In
addition, from January 2026, foreigners will be able to purchase real estate
assets in designated zones – a landmark development set to further deepen
investor appetite.
Investment and real estate is a key track at FHS World, with more than 30 presentations, panel debates, workshops and one-to-one conversations covering everything from smart capital to sustainability and investment, cross border strategies to building global partnerships, investing in mixed-use projects and much more. Visit futurehospitality.com/world/agenda for subjects and speakers across the three-day programme. -TradeArabia News Service