Region heads for hotel boom
28 March 2024
This report on hotel investment also includes: GCC becomes a top tourist destination
Alongside the major infrastructure and construction schemes currently under way in the region, contractors in the Middle East and North Africa (Mena) are looking forward to a significant inbound spree of hospitality-linked project work.
A combination of government-led touristic masterplans – led by expansive and ambitious schemes in Saudi Arabia – alongside private sector investment in individual hotels and resorts has led to the build-up of a $54bn pipeline of hospitality-linked projects in the pre-execution, study and planning stages across the Mena region, according to regional projects tracker MEED Projects.
With this ramp up in planned hotel schemes, the region is now leading the global recovery in tourism projects, in a reflection of broader travel trends that have seen tourist arrival numbers grow to exceed pre-pandemic levels by 22%, according to GlobalData.
Projects under way
The $54bn project pipeline compares to a value of $22.7bn of work currently under execution in the region, and a long-term tally of $95.4bn-worth of hotel and resort project contract awards over the past decade and a half.
In contrast to the pace of activity since 2009, however, the region’s upcoming projects are set to be delivered in a much tighter timeframe. Almost the entire $54bn-worth of planned hotel and resort projects is scheduled or expected for award before the end of 2025 and set to be completed in advance of 2030.
This sets the stage for an intensified period of hotel investment and development over the next five years that could surpass the last investment boom cycle in 2014 and 2015, when hotel project award totals reached $9.1bn and $10bn, respectively.
Since 2009, the average annual value of hotel and resort project awards has been $6.4bn, with activity waxing and waning over the intervening period. Hotel and resort schemes fell away dramatically in 2020 amid the Covid-19 pandemic, with awards reaching a low of $2.6bn in 2021. Activity then recovered in 2022 and 2023 to the above-average values of $6.7bn and $6.6bn, respectively.
So far in 2024, there have been $1.3bn of hotel and resort project awards, but there is a further $5.2bn in work under bid and set to be awarded this year. The award of those projects would take the tally for 2024 up to $6.5bn – a comparable awards total to those of 2022 and 2023. There is then an additional $15bn-worth of projects in design and due for award in 2024 on the basis of announced and expected delivery timeframes.
If the value of projects under bid and just a third of the projects under design and also provisionally due for award in 2024 are let as expected, it will be a record year for hotel project awards in the region.
Saudi investment spree
Looking at the $54bn-worth of projects split by market, the pipeline is dominated by the touristic megaprojects currently under development in Saudi Arabia, which account for $39.9bn or 74% of the total value of upcoming work.
The hotel and resort projects in the kingdom are in turn heavily weighted towards several provinces that have been targeted for touristic development. These include Tabuk Province, which has $12.6bn-worth of upcoming hospitality-linked projects as part of the Neom and Red Sea Project developments; the Medina and Mecca provinces, which together hold $16.4bn-worth of upcoming schemes linked to the annual Hajj and Umrah tourism industry; Riyadh, with $7.1bn-worth of upcoming work, including that linked to the Qiddiya masterplan; and smaller values in Asir, the Eastern Province and others.
In recent months, several hotel schemes have been announced in the kingdom. In late February, Neom announced plans for a Raffles-branded property at its Trojena mountain resort development. The hotel will be located in the Discover cluster of the resort and is slated to open in 2027. The first hotel projects at Trojena are meanwhile well under way, with local contractor Isam Khairi Kabbani Group beginning work in December on the estimated $100m Chedi Trojena, with completion expected in 2026.
In early March, Red Sea Global (RSG) announced plans for a Four Seasons hotel at its Triple Bay development at Amaala, with Dubai-based U+A Architects, owned by the French engineering firm Egis, as project architect. Four Seasons has also announced other upcoming projects in the kingdom, including a Red Sea project at Shura Island, another at Neom’s Sindalah Island and projects on the Jeddah Corniche and at Diriyah, outside of Riyadh. Saudi Arabia’s Kingdom Holding Company has a 24% stake in Four Seasons, alongside majority shareholder Cascade Investment.
March also saw work begin on Neom’s Epicon Towers – a technically complex twin-tower hotel – with enabling works being undertaken by the local Ammico Contracting. Previously known as the Gas Station Hotel, the design for the project was developed by Singapore’s Meinhardt Group, with the Hong Kong-based 10 Design serving as the lead consultant on the project.
These upcoming schemes are set to join $7.8bn-worth of Saudi hotel projects awarded in the past three years, including $1.8bn-worth of awards in Tabuk. In July 2023, RSG awarded a contract at Triple Bay to the local Mas Engineering for the construction of the Marina Lifestyle Hotel & Village. In May, RSG contracted a joint venture of Egypt’s Hassan Allam Holding and the local Rawabi Specialised Contracting to construct the Triple Bay Rosewood Hotel.
Also in Tabuk, Hilton International opened its first Hampton hotel in March, having jointly developed the project with the Riyadh-based Cayan Group. The project was awarded in January 2022 to local contractor BEC Arabia, with Egypt’s Sabbour Consulting acting as project manager.
Elsewhere in the kingdom, the Public Investment Fund-backed Dan Company also tendered three hotels to be operated by Hilton at its Palm One project, a farm-based tourism destination in Al Ahsa. The deadline for bid submissions is 30 April. Hong Kong-based LWK Partners is the lead designer for the project.
Broader regional spending
In a prominent example of government-led hotel and resort development activity outside of Saudi Arabia, Oman has recently been progressing several new touristic masterplans.
Oman’s Heritage & Tourism Ministry issued a tender in February inviting consultants to bid to develop a tourism project masterplan for the Remal Al Sharqiyah dunes of North and South Al Sharqiyah. The tender was issued on 27 February, with a bid submission deadline of 17 April.
Earlier in February, Oman’s Housing & Urban Planning Ministry (MHUP) also revealed the designs for a new $2.4bn development on Jebel Al Akhdar named the Omani Mountain Destination and masterplanned by Canadian engineering firm AtkinsRealis.
The same month, the MHUP also announced the $1.3bn Al Khuwair Downtown and Waterfront project in Muscat, engaging Zaha Hadid Architects for the project design alongside real estate consultant CBRE.
In the UAE, much of the hotel and resort development is proceeding in a more piecemeal manner, with a greater number of smaller, more discrete touristic schemes. One major development in November was Dubai developer Al Wasl’s award of the $1.3bn contract to build The Island to China State Construction Engineering Corporation in the largest construction contract in Dubai since 2017.
The Island is a 10.5-hectare reclaimed island that will feature MGM, Bellagio and Aria branded hotels. The local APCC was the earthworks contractor, with the project being managed by Germany’s Buro Kling Architectural Engineering Consulting and the local Consultant HSS.
Another recent example of UAE project activity was Modon Properties’ award in November of the contract for a four-star sports hotel on Abu Dhabi’s Al Hudayriyat Island to Trojan General Contracting. The UK’s Atkins is the project consultant, with Canada’s Ellisdon as the project management consultant.
What is apparent from all of this activity is the clear strengthening of hotel project development as regional governments pursue tourism investments both as a long-term economic diversification strategy and one that dovetails with robust and rising visitor traffic to the region.
As long as these trends remain, strong ongoing government and private sector investment in hospitality-linked projects can be expected, and with it, the delivery of the region’s $54bn hotel project pipeline by 2030.
GCC becomes a top tourist destination
Register for MEED's guest program now to access this article.
Exclusive from Meed
-
Masdar signs renewables deals in Montenegro28 July 2026
-
-
-
-
Contractor wins Emaar Oasis The Address villas deal28 July 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
-
Masdar signs renewables deals in Montenegro
28 July 2026
Abu Dhabi Future Energy Company (Masdar) and Montenegro’s state power utility Elektroprivreda Crne Gore (EPCG) have signed agreements to advance renewable energy projects in Montenegro.
The agreements cover the joint development of two solar projects with a combined capacity of 150MW.
The companies have also signed a framework agreement to explore the development of more than 400MW of pumped hydro energy storage projects.
The projects will be the first to be progressed through a 50:50 joint venture planned by Masdar and EPCG.
The two companies signed a joint venture agreement in April as part of a wider 2GW renewable energy partnership in Montenegro.
The latest agreements were signed in the presence of Sultan Al-Jaber, UAE minister of industry and advanced technology and chairman of Masdar, and Admir Sahmanovic, Montenegro’s minister of energy and mining.
Masdar has an existing presence in Montenegro through its investment in the 72MW Krnovo wind farm.
European expansion
The developer has been accelerating foreign investment plans in 2026. As part of its European expansion plans, it signed an agreement with Spanish energy firm Repsol in June to acquire a 49.99% stake in a local renewable energy portfolio.
The deal valued the portfolio at €849m ($982m).
The portfolio comprises 705MW of operational capacity, including 13 wind farms with a combined capacity of 402MW and six solar photovoltaic solar parks with a total capacity of 303MW.
All the assets entered operation in 2025 and the first quarter of 2026. The portfolio also includes a pipeline of future wind, solar and battery storage projects with a combined capacity of more than 565MW.
Growth in Asia
In April, Masdar signed a binding agreement with France’s TotalEnergies to establish a $2.2bn joint venture to develop, build and operate renewable energy projects across Asia.
The combined business will have 3GW of operational capacity and 6GW of projects in advanced development, targeted for commissioning by 2030.
In June, Masdar broke ground on a 1GW wind farm in Kazakhstan’s Zhambyl region, marking the company’s first renewable energy project in the country.
The $1.4bn development is one of the largest integrated wind and battery energy storage projects in Central Asia. It will combine a 1GW wind farm with a 600 MWh battery energy storage system.
Masdar is targeting a global renewable energy portfolio of 100GW by 2030. It recently reached 65GW, two-thirds of the way to that target.
The company plans to deploy an additional $30bn-$35bn in equity and project finance by 2030, adding an average of 10GW of new capacity each year.
https://image.digitalinsightresearch.in/uploads/NewsArticle/17792896/main.jpg -
Geopolitics tests Dubai property with hotels hardest hit
28 July 2026
Dubai’s residential market cooled sharply in the second quarter of 2026, and the hospitality sector recorded its steepest downturn in years, according to US-based real estate research firm CBRE’s latest UAE market review. Office and industrial real estate, however, continued to defy a weaker macroeconomic backdrop, the report said.
The figures, published on 28 July, mark a turning point for a residential sector that has driven much of Dubai’s post-pandemic growth story.
Transaction volumes fell 29% year-on-year to just under 37,000 sales in the second quarter, down from more than 51,000 in the same period last year.
Total transaction values dropped even further, to AED88bn ($24bn) from close to AED154bn ($42bn) in the second quarter of 2025.
Rents have moved into negative territory faster than prices. While sales values were still up 1.9% year-on-year, average residential rents fell 2.6% annually and 6.2% quarter-on-quarter.
About 18,000 new units were completed in the first half of the year, adding to supply just as demand and transaction activity were softening.
The contrast with Abu Dhabi is stark. The capital’s residential values rose 21.6% year-on-year, powered by 24.4% growth in apartment prices, while rents climbed a further 3.6%.
Sales values reached AED32bn ($8.7bn), up 150% on the same quarter last year, with transaction volumes up around 80%.
Off-plan sales accounted for roughly 83% of deals and 85% of value, underscoring investor appetite for new launches even as Dubai’s own off-plan pipeline slows.
Hospitality bears the brunt
The hospitality sector recorded the most pronounced downturn of any asset class tracked in the review. Regional geopolitical disruption weighed heavily on international travel demand and airline operations through the first half of the year, with UAE-wide hotel occupancy down 27.7 percentage points year-on-year to June and revenue per available room (RevPAR) down 31.8%, according to CoStar data cited in the report.
Dubai absorbed the sharpest declines, reflecting its greater reliance on international visitor flows, while Abu Dhabi held up comparatively better on the strength of domestic demand and events-led tourism.
Operators have responded with staycation packages, domestic tourism campaigns and refurbishment programmes aimed at protecting market positioning ahead of an anticipated recovery in international arrivals.
Office and industrial hold strong
Away from housing and hotels, the picture is markedly different. Dubai office rents rose 13% year-on-year, with prime rents up 16% and occupancy at about 94%, as demand concentrated in DIFC, Tecom and DMCC continues to outpace the delivery of new Grade A stock.
Abu Dhabi’s office market performed even more strongly, with rents up nearly 16% and occupancy at 96%, driven by ADGM-based financial services firms including hedge funds.
With less than 300,000 square metres (sq m) of new office space due between 2026 and 2027, both emirates face a supply squeeze that is likely to sustain rental growth into next year.
Retail occupancy remained resilient at about 98% in Dubai and 95% in Abu Dhabi despite softer tourism flows and shifting consumer spending, with Dubai rents up around 3% year-on-year.
A new wave of retail supply is in the pipeline, led by Al-Khail Avenue in Dubai and the first phase of Saadiyat Grove in Abu Dhabi.
Industrial and logistics stand out
Underpinned by government-led localisation programmes, the UAE industrial exports reached AED262bn ($71bn) in 2025, with Operation300bn and Make it in the Emirates (MIITE) continuing to draw manufacturing and logistics investment.
Abu Dhabi secured AED48.5bn ($13.2bn) in commitments through MIITE alongside new logistics agreements at Kezad. At the same time, Dubai recorded strong rental growth across Dubai Industrial City, Dubai Investments Park and National Industries Park.
CBRE now forecasts a marginal UAE GDP contraction of 0.04% for 2026, reflecting disruption to trade, tourism and aviation, though it expects a strong rebound in 2027 as regional conditions normalise.
READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDFStress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.
Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
> AIRPORTS: Dubai and Riyadh reaffirm airport ambitions> INDUSTRY REPORT: Dubai eyes tourism sector recovery> DATA CENTRES: Big Tech falls short on data centre promise> LEADERSHIP: Aramco’s citizen developers accelerate digital changeTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17792437/main.jpg -
Kuwait extends deadlines for power infrastructure packages
28 July 2026
Kuwait’s Public Authority for Housing Welfare (PAHW) has extended the bid submission deadline for two tenders covering power transmission works at the South Saad Al-Abdullah residential development.
The first tender covers the supply, installation and maintenance of 10 main 132/11kV transformer substations for the third phase of the development.
The bid deadline has been extended to 19 August. The original deadline was 5 August.
The second tender covers the supply, installation and maintenance of 10 main 132/11kV transformer substations for the fourth phase of the project.
The bid deadline for this project has also been moved to 19 August.
Both projects were initially tendered in May. As reported by MEED, PAHW previously issued addendums for both substation tenders, revising the qualification requirements for bidders.
According to the revised requirements, contractors must be approved by Kuwait’s Ministry of Electricity, Water & Renewable Energy and have experience supplying and installing at least 10 132kV substations in Kuwait.
The addendums also introduced requirements related to transformer and gas-insulated switchgear manufacturing approvals, as well as operational performance records for installed equipment
Sabah Al-Ahmad residential city
Meanwhile, bids were submitted on 16 July for two 132kV underground cable tenders for the South Sabah Al-Ahmad residential development.
PAHW had tendered the contracts in May.
The first cable tender covers the supply, extension and maintenance of 132kV underground cables feeding eight main transformer substations serving the N1, N6 and N11 districts in the project’s fourth phase.
According to sources, Egytech Cables, a subsidiary of Egypt’s Elsewedy Electric, was the lowest bidder with an offer of $42.37m.
The other bidders include:
- TBEA Shandong Luneng Taishan Cable (China, $44.06m)
- Riyadh Cables (Saudi Arabia, $44.57m)
- The Contractor General Trading & Contracting (Kuwait, $46.26)
The second cable tender covers the supply, extension and maintenance of 132kV underground cables linked to substations serving the N5, N6, N8 and N10 districts in the project’s third phase.
Egytech Cables submitted the lowest offer of $39.95m. TBEA Shandong Luneng Taishan Cable submitted a bid of $41.89m along with Riyadh Cables ($42.05m) and The Contractor General Trading & Contracting ($44.97m).
https://image.digitalinsightresearch.in/uploads/NewsArticle/17786669/main.jpg -
Ashghal tenders northern Smaisma infrastructure consultancy
28 July 2026
Qatar’s Public Works Authority (Ashghal) has issued a tender for consultancy services related to infrastructure development in the northern Smaisma area.
The tender was issued on 19 July, with a bid submission deadline of 8 September.
The scope covers construction supervision consultancy services for package seven (A and B).
According to local media reports, the scope of package seven A includes the airstrip road, the coastal road and connections to the existing Al-Khor Expressway, spanning an area of about 18.5 kilometres.
Ashghal floated the main contract tender for this package in March, as MEED reported.
The contract duration is four years from the start of construction.
Package seven B includes foul sewer infrastructure, drainage networks and road development works spanning more than 1.3km.
The latest tender follows Ashghal’s announcement of contract awards for 12 new projects, with a total value exceeding QR4.5bn ($1.2bn).
According to a notice published on its website, these include six building projects, most notably the redevelopment of Hamad General Hospital, with a contract value of about QR1.1bn ($301m).
Other projects awarded include the construction of a post office building in Al-Thumama; renovation works at the Qatar Racing & Equestrian Club and the Qatar Equestrian Federation; and the implementation of Phase 4 of the Al-Uqda Equestrian Complex development.
In the roads and infrastructure sector, four projects have been awarded, led by packages one and two of the road and infrastructure development works in Izghawa and Al-Thumaid.
The awards also include a landscaping project and an air-conditioned walkway at Qatar University, as part of broader public-facilities improvement initiatives.
UK analytics firm GlobalData forecasts that Qatar’s construction industry will expand by 4.3% in 2026, supported by investments in renewable energy and transportation infrastructure.
Meanwhile, the Planning & Statistics Authority reports that Qatar’s construction value-added grew by 6.6% year on year in the first half of 2025.
GlobalData also expects the industry to grow at an average annual rate of 4.6% in 2027-29, supported by investment in construction, energy and infrastructure projects.
https://image.digitalinsightresearch.in/uploads/NewsArticle/17791590/main.gif -
Contractor wins Emaar Oasis The Address villas deal
28 July 2026
Dubai-based Dutco Construction has won a contract to build the third phase of Emaar’s Address Villas Tierra at The Oasis development.
The contract was awarded by Dubai-based real estate developer Emaar Properties.
The scope comprises the construction of 199 Address-branded four-, five- and six-bedroom villas.
Local firm Mirage is the project consultant. Barajeel Engineering Consultants is the architect of record.
Site preparatory works are under way, and the project is slated for completion in 2028.
Dutco is already active at The Oasis. In April last year, Emaar Properties appointed Dutco Construction for the main works on the Mirage package of The Oasis development.
The Mirage package involves the construction of about 202 residential villas and is expected to be completed by the end of 2027.
Local firm X Architects is the project consultant, and Kristina Zanic is the sub-consultant.
Emaar announced The Oasis project in June 2023. The estimated $20bn development will comprise 7,000 residential units, including mansions and villas.
The overall development will cover more than 9.4 million square metres. The developer has said that more than 25% of the land will be dedicated to lakes, canals, parks, jogging tracks, green spaces and other amenities.
https://image.digitalinsightresearch.in/uploads/NewsArticle/17791774/main.png