Beaches and luxury drive regional tourism
4 April 2025

This package also includes: Region’s hotel projects pipeline balloons
In November last year, Saudi gigaproject developer Red Sea Global opened the Shebara resort. The resort’s futuristic architecture – with metallic orbs seemingly floating above the Red Sea – is indicative of the kingdom’s efforts to transform its tourism sector to attract international leisure visitors with sandy beaches and year-round sunshine to supplement its religious tourism offerings.
While the room rates may mean visiting the resort is just an aspiration for many, its impact has been wide-ranging as social media posts by influencers visiting the resort highlight what Saudi Arabia now offers as a tourist destination.
Diversifying its offering is a key part of Saudi Arabia’s tourism strategy, which aims to attract 70 million international visitors by 2030.
In January, Saudi Arabia’s tourism minister reported that the kingdom had welcomed a record 30 million international visitors in 2024. This figure marks a significant rise from 2019, when Saudi Arabia opened its doors to international tourism, attracting just over 17.5 million visitors.
Despite the progress, the growth rate in 2024 was 9.4%, which is slower than previous years. In 2023, arrivals jumped by 65% to reach 27.4 million. To achieve its target of 70 million visitors by 2030, Saudi Arabia must achieve an average annual increase of about 6.6 million visitors, equating to a growth rate of nearly 15% a year.
The opening of Shebara and other beach resorts will be vital to achieving this target.
Diversifying its offering is a key part of Saudi Arabia’s tourism strategy, which aims to attract 70 million international visitors by 2030
Beach resorts
While the GCC’s coastal regions and islands have been developed for tourism for decades, they are increasingly becoming magnets for travellers. According to GlobalData’s Q2 2024 survey, 54% of respondents globally prefer sun and beach holidays, a trend that the GCC is well-positioned to capitalise on.
Saudi Arabia is tapping into this demand with development projects on the country’s west coast, including the Red Sea Project, Amaala and several schemes within the Neom masterplan.
On the other side of the Arabian Peninsula, the UAE – particularly Dubai and Abu Dhabi – has long been a favourite for beachgoers, boasting luxurious beachfront resorts. These destinations are not only about relaxation, but also offer adventure activities, from water sports to desert safaris, enhancing their appeal to a broad spectrum of tourists.
These beachfront offerings have helped the UAE’s tourism sector recover from the lockdowns during the Covid-19 pandemic. Dubai welcomed 18.7 million international overnight visitors in January to December 2024, a 9% year-on-year increase that surpassed the previous record of 17.2 million in 2023, according to data from the Dubai Department of Economy & Tourism.
Room capacity is being added to cater to the growing numbers of tourists. According to property consultancy Cavendish Maxwell, Dubai’s hotel inventory will grow by 3.1% in 2025, with 3.4% growth predicted for 2026. By the end of 2027, Dubai is set to have more than 162,600 rooms across 769 hotels.
High-end offering
Luxury tourism is another pillar of growth for the GCC’s tourism sector. The UAE and Qatar have already established themselves as luxury destinations, attracting high-net-worth individuals and affluent travellers. Dubai’s high-end hotels and shopping malls are just some of the well-developed luxury tourism experiences on offer in Dubai.
In 2024, almost 70% of room supply in Dubai was in the high-end category, according to Cavendish Maxwell, while for upcoming supply in 2025, nearly 70% will be in the high-end or upper-upscale segment.
Similarly, the Pearl-Qatar destination and the award-winning experiences offered by Qatar Airways have positioned Doha as a luxury hotspot.
Saudi Arabia is also making strides in this sector. In addition to developments like Shebara offering luxury experiences, there are high-end tourism projects being developed across the kingdom. Most recently, gigaproject developer Diriyah Company announced the Luxury 1, a 325-key hotel, which will be the brand’s first property in the Middle East. It will be part of a media and innovation district within the Diriyah project on the outskirts of Riyadh.
Diriyah Company is also building residential projects that will be operated by luxury hotel brands. These include Armani, Baccarat, Corinthia, Raffles and Ritz-Carlton branded residences.
Traditional strength
While beaches and luxury are creating new opportunities, religious tourism remains the cornerstone of Saudi Arabia’s tourism strategy, driven by the millions of Muslims that visit Mecca and Medina for Hajj and Umrah.
A recent legal change allowing foreign ownership of land-owning companies in these cities marks a significant shift in Saudi Arabia’s approach to attracting foreign investment. This move is part of a broader strategy to bolster the economy and enhance the appeal of the Saudi financial market.
The Saudi government’s Vision 2030 aims to increase tourism to 150 million visits annually by 2030, with religious tourism playing a crucial role. The kingdom is investing in infrastructure to accommodate the growing number of pilgrims, with the expansion of airports, hotels and transportation networks under way.
The introduction of electronic and tourist visas has also made it easier for pilgrims to combine their religious journeys with other tourism experiences, broadening the scope of religious tourism to include cultural and heritage tourism.
The GCC’s tourism sector is poised for significant growth, driven by the dual pillars of beach and luxury tourism, and complemented by religious tourism. The region’s investments in resorts and supporting infrastructure, coupled with its natural and cultural attractions, position it as one of the world’s most exciting tourism destinations.
Region’s hotel projects pipeline balloons
Main image: High-end beachfront resorts such as Red Sea Global’s Shebara will be vital in achieving Saudi Arabia’s tourism targets. Credit: Red Sea Global – Shebara
Exclusive from Meed
-
Read the October 2026 MEED Business Review30 September 2026
-
Aramco receives interest for major gas processing plant30 September 2026
-
Libya refinery expected to be worth more than $600m30 September 2026
-
Joint venture wins $230m Ras El-Hekma buildings30 September 2026
-
Neom tenders Oxagon freight rail design30 September 2026
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
Read the October 2026 MEED Business Review30 September 2026
Download / Subscribe / 14-day trial access For all the talk of cancellations and cutbacks, Neom is still building – and its biggest completed project to date offers a clue to where the $500bn gigaproject is heading. Our October Agenda feature examines how Oxagon is moving to the centre of Neom’s strategy, as investment shifts towards projects with the potential to generate tangible commercial returns, from green hydrogen and ports to AI data centres and logistics infrastructure.
Read the full analysis in the October issue of MEED Business Review.As Neom reshapes its priorities, Saudi Arabia’s wider project market continues to show resilience. Contract awards have reached $68bn in 2026, despite regional conflict and economic uncertainty, with activity spanning energy, infrastructure, power and the future economy.
But with $91.5bn of projects completed this year, new awards will be crucial to maintaining momentum into 2027.
This edition also includes MEED’s 2026 power developer ranking, revealing the companies driving the region’s rapidly expanding power market.
The issue also explores key trends shaping the region, from AI’s growing demands on grid capacity and the implications of ICE Futures Abu Dhabi’s wind-down for Gulf commodity markets, to how the Hormuz crisis is redirecting oil companies’ focus to North Africa. Our Leadership feature asks whether the future city really needs to hang above the ground.
We hope our valued subscribers enjoy the October 2026 issue of MEED Business Review.

Must-read sections in the October 2026 issue of MEED Business Review include:
> AGENDA: Oxagon takes centre stage at NeomINDUSTRY REPORT:
MEED’s 2026 power developer ranking
> Regional power market diversifies
> Battery storage broadens IPP market> POWER: AI is creating a grid capacity problem
> LEGAL: What IFAD’s wind-down means for Gulf commodity markets
> OIL: Oil companies focus on North Africa amid Hormuz crisis
> LEADERSHIP: The future city does not need to hang above the ground
> SAUDI ARABIA MARKET FOCUS:
> COMMENT: Saudi projects hold steady
> GOVERNMENT: Riyadh looks to reset its regional defence outlook
> ECONOMY: Conflict bolsters case for Saudi economic diversification
> BANKING: Saudi lenders readjust to lower lending and deposit climate
> UPSTREAM: Aramco upstream spending gathers pace
> DOWNSTREAM: Sabic steps up Saudi petchems investment
> POWER: Saudi Arabia’s power award activity slows
> WATER: Saudi water sector hits sharp slowdown
> CONSTRUCTION: Saudi construction defies the headwinds
> TRANSPORT: Saudi infrastructure pushes forward amid conflict
> DATABANK: Saudi data indicates project spending shift> MEED COMMENTS:
> Dubai Inc steps in as developers turn cautious
> Saudi Arabia redirects towards AI
> Kuwait plans biggest oil and gas contract award in 10 years
> Saudi Arabia battery storage awards provide fresh lift> GULF PROJECTS INDEX: Saudi Arabia and UAE lead Gulf index gains
> AUGUST 2026 CONTRACTS: Middle East contract awards
> ECONOMIC DATA: Data drives regional projects
> OPINION: The boomers’ last act
> BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts
To see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/20134595/main.gif -
Aramco receives interest for major gas processing plant30 September 2026

Saudi Aramco has received expressions of interest from contractors to participate in the main tendering exercise for a project to expand the Alhada gas processing plant, located about 85 kilometres northwest of Jubail in Saudi Arabia’s Eastern Province.
The Alhada gas processing plant expansion is critical to Aramco’s goal of increasing gas production capacity by 80% by 2030 from a 2021 baseline.
Aramco issued a solicitation of interest document for the main tendering exercise in early September, with contractors submitting responses by 17 September, sources told MEED.
The engineering, procurement and construction (EPC) scope of work has been divided into three main packages, sources said.
The first EPC package relates to the main gas treatment facilities, primarily three processing trains, along with:
- Three acid gas removal units
- Triethylene glycol (TEG) dehydration unit
- Two high-pressure and two low-pressure flares
- Two flare gas recovery units
- Two T&l flares
- Two burn pits
- A digital twin
The acid gas removal units will treat sour gas by removing hydrogen sulphide and carbon dioxide to produce sales gas, as well as acid-gas feed for the downstream acid gas enrichment unit and sulphur recovery unit.
The acid gas removal units will also process gas from the flare gas recovery units through a dedicated amine contactor to meet specifications for use as fuel gas. The TEG dehydration unit will then remove water from the treated gas to meet sales-gas specifications.
The project’s second EPC package covers the sulphur recovery units. The third package involves inlet channels for monoethylene glycol, as well as common utilities and supporting structures.
ALSO READ: Contractors express interest in sixth Jafurah expansion phase
https://image.digitalinsightresearch.in/uploads/NewsArticle/20127671/main4900.jpg -
Libya refinery expected to be worth more than $600m30 September 2026

The main contract for Libya’s planned South Refinery project is expected to be worth more than $600m, according to industry sources.
The project, located in Ubari in southern Libya, has gained momentum over the past year. The main contract is expected to be procured under an engineering, procurement and construction (EPC) model.
In March, US-based engineering company KBR was awarded a contract by Zallaf Exploration, Production & Refining of Oil & Gas Company to provide project management and technical services for the project.
Under the terms of the contract, KBR will provide contract management, project management and supporting technical services throughout the project’s EPC phases.
The EPC work is expected to take 50 months, and the facility will be designed to process 30,000 barrels a day (b/d) of crude oil.
The refinery is expected to produce:
- Propane and butane for domestic and industrial uses
- Gasoline
- Kerosene
- Diesel
- Fuel oil
In March, KBR said that the project was aligned with its “long-standing commitment to advancing vital oil and gas infrastructure in Libya”.
Libya currently operates five main refineries with a combined nameplate capacity of 380,000 b/d, but actual throughput is closer to 180,000 b/d due to poor maintenance and damage from military clashes.
In addition to the South Refinery project, Libya also plans to upgrade the Zawiya refinery and carry out projects at the Serir, Brega, Tobruk and Ras Lanuf refineries.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20124329/main.jpg -
Joint venture wins $230m Ras El-Hekma buildings30 September 2026
A joint venture of UK-based Innovo Build and Egypt’s Redcon Construction has won a contract worth about E£12bn ($230m) to carry out infrastructure and construction works for the DP03 East package of the Wadi Yemm development at Ras El-Hekma on Egypt’s North Coast.
Wadi Yemm is being developed by the UAE’s Modon Development as the first phase of its Ras El-Hekma masterplan, which will comprise 17 planned districts.
DP03 East has a built-up area of 323,000 square metres and is scheduled for completion within 21 months.
The scope of work includes more than 660 residential units – comprising standalone villas and townhouses – as well as public service areas, lakes, a commercial mall, landscaping and roadworks.
The delivery of units at Wadi Yemm is expected to begin in the third quarter of 2029.
Ras El-Hekma is located on a spur of land on Egypt’s northern Mediterranean coast, about 240 kilometres west of Alexandria.
Abu Dhabi-based holding company ADQ appointed Modon Holding as master developer for the Ras El-Hekma project in 2024. Modon will oversee the overall development, which covers more than 170 million square metres (sq m).
Modon will develop the first phase, covering 50 million sq m. The remaining 120 million sq m will be developed in partnership with private developers, under the supervision of the recently established ADQ subsidiary Ras El-Hekma Urban Development Project Company and Modon.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20123189/main.jpg -
Hassan Allam wins $1bn Cairo mixed-use project deal30 September 2026
Register for MEED’s 14-day trial access
Grova Developments, the real estate development arm of Egypt’s Hassan Allam Holding, has awarded Hassan Allam Construction a $1bn contract to deliver the Grova Westfields project in West Cairo.
Hassan Allam Construction’s scope of work includes a 150-key five-star hotel, branded residences, luxury villas and apartments, as well as infrastructure and landscaping works.
The project spans about 1.2 million square metres and is being developed in partnership with the Egyptian Kuwaiti Company for Real Estate Development.
Broadway Malyan has been appointed to lead the master planning and architectural design.
In October last year, Hassan Allam Construction announced that it had won a $550m contract to build another mixed-use development spanning more than 128 hectares in New Cairo.
That development comprises villas, townhouses, commercial and office space, mixed-use buildings, infrastructure and other associated facilities.
Hassan Allam Properties is co-developing the project with Grova Developments.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20123048/main.jpeg