meed-logo

line1 line2 line3
SIGN IN / REGISTER

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

https://image.digitalinsightresearch.in/uploads/NewsArticle/13569292/main.gif
Colin Foreman

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Ora Developers adds land bank to its Bayn masterplan

    17 April 2026

    Egyptian firm Ora Developers has signed a land acquisition agreement with Abu Dhabi-based developer Modon Holding to acquire an additional 4.8 million square metres (sq m) of land in the Ghantoot area between Abu Dhabi and Dubai.

    Ora Developers said that the land acquisition will increase the existing Bayn masterplan from 4.8 million sq m to 9.6 million sq m.

    The firm added that the total investment in the masterplan upon completion is expected to reach AED30bn ($8bn).

    In January, Ora Developers appointed six engineering consultancies to lead the development of the first phase of its Bayn residential community project.

    The developer appointed UK-based firm Mace to lead the overall project management.

    Canadian firm WSP will serve as the masterplan, infrastructure, landscape and water bodies design consultant, as reported by MEED in May last year.

    Another US firm, Aecom, will provide construction supervision services.

    Hong Kong’s 10 Design is the project’s architectural concept design consultant.

    Local firm Dewan Architects & Engineers is the project’s design consultant and architect of record.

    The UK’s Currie & Brown is the cost consultant.

    The first phase will offer 805 villas and townhouses, and the project is expected to be completed in 2028.

    The project will also include a neighbourhood park, sports facilities, a water park, a five-star hotel and a shopping mall.

    In December last year, Abu Dhabi government-owned contractor NMDC Group won a AED142m ($39m) contract from Ora Developers.

    The contract scope covers the execution of enabling works on the Bayn masterplan.

    The main construction works on the project's first phase are expected to begin in the second quarter of this year.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16439214/main.jpg
    Yasir Iqbal
  • SAR extends deadline for Riyadh section of Saudi Landbridge

    16 April 2026

     

    Saudi Arabia Railways (SAR) has set a deadline of 29 April for a design-and-build contract for the construction of a new railway line, the Riyadh Rail Link, which will run from north to south Riyadh.

    The tender was issued on 29 January. The previous bid submission deadline was 29 March.

    The scope of work includes constructing a 35-kilometre-long double-track railway line connecting SAR’s North-South railway to the Eastern railway network.

    The contract also covers the procurement, construction and installation of associated infrastructure such as viaducts, civil works, utility installations, signalling systems and other related works.

    The project is expected to form a key component of the Saudi Landbridge railway.

    In January, SAR said it will deliver the Saudi Landbridge project through a “new mechanism” by 2034, after failing to reach an agreement with a Chinese consortium for the construction of the project, as MEED reported.

    In an interview with local media, SAR CEO Bashar Bin Khalid Al-Malik said the consortium failed to meet local content requirements and that the project will now be delivered in several phases under a different procurement model.

    The project has been under negotiation between Saudi Arabia and China-backed investors keen to develop it through a public-private partnership.

    Al-Malik said that the project cost is about SR100bn ($26.6bn).

    It comprises more than 1,500 kilometres (km) of new track. The core component is a 900km new railway between Riyadh and Jeddah, which will provide direct freight access to the capital from King Abdullah Port on the Red Sea.

    Other key sections include upgrading the existing Riyadh-Dammam line, a bypass around the capital called the Riyadh Link, and a link between King Abdullah Port and Yanbu.

    The Saudi Landbridge is one of the kingdom’s most anticipated project programmes. Plans to develop it were first announced in 2004, but put on hold in 2010 before being revived a year later. Key stumbling blocks were rights-of-way issues, route alignment and its high cost.

    MEED’s April 2026 report on Saudi Arabia includes:

    > COMMENT: Risk accelerates Saudi spending shift
    > GVT &: ECONOMY: Riyadh navigates a changed landscape
    > BANKING: Testing times for Saudi banks
    > UPSTREAM: Offshore oil and gas projects to dominate Aramco capex in 2026
    > DOWNSTREAM: Saudi downstream projects market enters lean period
    > POWER: Wind power gathers pace in Saudi Arabia
    > WATER: Sharakat plan signals next phase of Saudi water expansion
    > CONSTRUCTION: Saudi construction enters a period of strategic readjustment
    > TRANSPORT: Rail expansion powers Saudi Arabia’s infrastructure push

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16418597/main.gif
    Yasir Iqbal
  • Public Investment Fund backs Neom

    16 April 2026

    Commentary
    Colin Foreman
    Editor

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Public Investment Fund (PIF) has backed Neom by including it as one of six strategic ecosystems in its newly approved 2026-30 strategy.

    The future of the $500bn gigaproject had been thrown into doubt following the postponement of the 2029 Asian Winter Games at the Trojena mountain resort, the cancellation of construction contracts – such as the $5bn deal with Italian contractor Webuild for dam works at Trojena – and the slowdown of development at The Line, where tunnelling contracts were cancelled and staff left the project.

    The backing comes as Neom’s operational focus appears to be evolving in response to shifting regional dynamics and global economic conditions. For example, on 15 April Neom posted on its official X account about a new Europe-Egypt-Neom-GCC corridor, describing it as a faster route for time-sensitive goods. It said the corridor combines trucking and ferry services to move goods quickly into the Gulf, adding that importers from several European markets are already using it to reach the UAE, Kuwait, Iraq, Oman and beyond.

    Powered by Pan Marine, DFDS and regional RoPax services, the initiative is positioned as a way to add flexibility and resilience to regional supply chains. This emphasis on logistics and immediate trade utility suggests a shift away from the more speculative architectural announcements that characterised Neom’s early years, towards activity more directly tied to current market realities.

    PIF’s broader 2026-30 strategy places heavy emphasis on “delivering competitive domestic ecosystems to connect sectors, unlock the full potential of strategic assets, maximise long-term returns and continue to drive the economic transformation of Saudi Arabia”.

    The inclusion of Neom as a standalone ecosystem within the Vision Portfolio suggests that while the project remains part of the kingdom’s Vision 2030 goals, it will be subject to the fund's focus on working with the private sector.

    That means the long-term success of Neom will increasingly depend on its ability to attract external investment and function as a viable economic hub rather than just a state-funded construction site.

    MEED’s April 2026 report on Saudi Arabia includes:

    > COMMENT: Risk accelerates Saudi spending shift
    > GVT &: ECONOMY: Riyadh navigates a changed landscape
    > BANKING: Testing times for Saudi banks
    > UPSTREAM: Offshore oil and gas projects to dominate Aramco capex in 2026
    > DOWNSTREAM: Saudi downstream projects market enters lean period
    > POWER: Wind power gathers pace in Saudi Arabia
    > WATER: Sharakat plan signals next phase of Saudi water expansion
    > CONSTRUCTION: Saudi construction enters a period of strategic readjustment
    > TRANSPORT: Rail expansion powers Saudi Arabia’s infrastructure push

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16417262/main.jpeg
    Colin Foreman
  • Kuwait gas project worth $3.3bn put on hold

    16 April 2026

     

    State-owned Kuwait Gulf Oil Company’s (KGOC’s) planned tender for the development of an onshore gas plant next to the Al-Zour refinery has been put on hold due to uncertainty created by the US and Israel’s war with Iran, according to industry sources.

    The project budget is estimated to be $3.3bn, and the last meeting with contractors to discuss the project took place in Kuwait on 10 February.

    Previously, it was expected to be tendered in late March, but the tendering process was delayed due to the regional conflict and disruption to shipping through the Strait of Hormuz.

    One source said: “This tender is now effectively on hold while KGOC waits for increased stability in the region before it invites companies to bid for the contract.”

    Under current plans, the plant will have the capacity to process up to 632 million cubic feet a day of gas and 88.9 million barrels a day of condensates from the Dorra offshore field, located in Gulf waters in the Saudi-Kuwait Neutral Zone.

    Ownership of the field is disputed by Iran, which refers to the field as Arash.

    Iran claims the field partially extends into Iranian territory and asserts that Tehran should be a stakeholder in its development.

    It is believed that the Dorra field’s close proximity to Iran will make development difficult due to the current security environment.

    The offshore elements of the project are expected to be especially difficult to protect from attacks from Iran.

    In July last year, MEED reported that KGOC had initiated the project by launching an early engagement process with contractors for the main engineering, procurement and construction tender.

    France-based Technip Energies completed the contract for the front-end engineering and design.

    READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDF

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16413221/main.png
    Wil Crisp
  • Iraq pushes to revive oil pipeline through Saudi Arabia

    16 April 2026

    Iraq is pushing to revive an oil pipeline that passes through Saudi Arabia, allowing it to diversify export routes.

    Saheb Bazoun, a spokesman for Iraq’s Oil Ministry, said the pipeline would help to insulate Iraq from any future blockades of the Strait of Hormuz, which has been largely closed since 28 February.

    The original pipeline through Saudi Arabia has not been used for more than 30 years and would need work to be done in order to bring it online.

    It is 1,568km long, extending from the city of Zubair in Iraq to the Saudi port of Yanbu on the Red Sea.

    The pipeline was built in two phases during the 1980s. The first phase stretches between Zubair and Khurais, while the second extends to Yanbu. The pipeline’s operating capacity reached over 1.6 million barrels a day (b/d).

    Following the Gulf War, the pipeline was shut down in August 1990. It has remained out of operation for decades, despite Iraq’s several attempts to restart it.

    The original pipeline project cost over $2.6bn, including storage tanks and loading terminals.

    In the wake of the US and Israel attacking Iran on 28 February, global markets have lost 11 million barrels a day (b/d) of oil supply due to the effective closure of the Strait of Hormuz.

    READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDF

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16413290/main.jpg
    Wil Crisp