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.
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Firms submit Mid Island Parkway prequalifications18 August 2026

Abu Dhabi’s Modon Infrastructure has received expressions of interest and prequalification statements for the next phase of Abu Dhabi’s Mid Island Parkway Project (MIPP), which will be developed as a public-private partnership.
Modon Infrastructure will act as the lead developer and will hold a majority equity stake in the project company. It will award contracts for engineering, procurement and construction; operations and maintenance; and project advisory services.
Phase two of the MIPP involves constructing about 11 kilometres (km) of highways, comprising a mix of three-, four- and five-lane sections. The highways will connect the Um-Yifeenah, Al-Jubail, Al-Sammaliyyah and Sas Al-Nakhl islands to Khalifa City and the E10 road.
The scope also includes the construction of three interchanges – E20, E10 and Dumbbell – on Al-Sammaliyyah Island.
The project includes several major structures, including the E20 interchange, which will feature cast-in-place box-girder and void-slab bridges, and the E10 interchange, which will feature cast-in-place box-girder bridges. It also includes I-girder bridges between Raha Beach West and Sas Al-Nakhl Island, as well as a causeway at Sas Al-Nakhl Island.
Further elements include a cast-in-place balanced cantilever bridge between Sas Al-Nakhl Island and Al-Sammaliyyah Island; a tunnel between Al-Sammaliyyah Island and Bilrimaid Island; and a cut-and-cover tunnel on Bilrimaid Island. Another tunnel will connect Bilrimaid Island to Um-Yifeenah Island.
Abu Dhabi awarded three packages for phase one of the MIPP in 2024. The contract for Package 1A was awarded to a joint venture of Turkish contractor Dogus Construction and UAE firm Gulf Contractors. Package 1B was awarded to a joint venture of Yas Projects (Alpha Dhabi Holding) and China Railway International Group. Beijing-headquartered China Harbour Engineering Company and the UAE’s Agility Engineering & Contracting Company won the contract for Package 1C.
Phase one starts at the existing Saadiyat Interchange, connecting the E12 to the MIPP, and ends at the recently constructed Um-Yifeenah Highway.
It comprises a dual main road with a total length of 8km, including four traffic lanes in each direction, two interchanges, a tunnel and associated infrastructure works.
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Construction begins on phase two of Cairo Metro Line 418 August 2026
Egypt’s National Authority for Tunnels (NAT) has begun implementing the second phase of Cairo Metro’s Line 4, spanning about 27 kilometres.
The main construction works contract was awarded to a joint venture of local firms, including Arab Contractors, Hassan Allam, Petrojet and Concord Engineering & Contracting.
Cairo Metro Line 4 will stretch from Fustat station to Zahraa Nasr City station in New Cairo. The line will comprise 21 stations, 15 underground and six elevated.
According to data from regional projects tracker MEED Projects, the scope also covers:
- Construction of a tunnel route starting from Al-Fustat station, following Salah Salem Road, and intersecting with the sixth metro line at Sayeda Aisha station
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- Construction of structures over and under major roadways, including the Ring Road and Cairo-Suez Road
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Local media reports said construction work on the first phase of Line 4 is expected to be completed in 2028.
The joint venture of Arab Contractors, Hassan Allam, Petrojet and Concord Engineering & Contracting is also undertaking the main works on the first phase.
The Japan International Cooperation Agency (Jica) provided half of the $4bn funding required for Line 4’s first phase.
The media reports added that NAT is currently studying the third and fourth phases of Line 4.
The third phase aims to connect the Ashgar Gardens and Al-Hosary areas via a rail line spanning more than 16km.
The fourth phase will be more than 38km long and will connect the Al-Rehab area with the capital’s international airport east of Cairo.
Once completed across all phases, Line 4 will link 6th of October City with southern and eastern Cairo, the New Administrative Capital and Capital International airport, making it one of the longest transport networks in the country.
In April last year, MEED reported on Egypt’s future rail project plans, which include eight key projects spanning metro, high-speed rail and light rail transit.
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RTA opens bridge connecting DWTC to Al-Mustaqbal Street18 August 2026
Dubai’s Roads & Transport Authority (RTA) has opened a new 500-metre, two-lane bridge connecting traffic from Dubai World Trade Centre (DWTC) and One Central to Al-Mustaqbal Street.
The bridge will reduce travel time from DWTC to Al-Mustaqbal Street from around 10 minutes to about two minutes during major events.
The bridge is part of the $172m Al-Mustaqbal Street Development Project. The wider scheme includes around 2,000 metres of bridges and tunnels, along with a pedestrian bridge on Al-Sukook Street, and runs from Zaabeel Palace Street to Financial Centre Street.
As part of the project, Al-Mustaqbal Street will be widened from three to four lanes in each direction, increasing overall capacity by 33% to 8,800 vehicles per hour in both directions.
The RTA added that this is expected to cut end-to-end travel time along the corridor from 13 minutes to six minutes.
Three tunnels, totalling 1,500 metres, at the intersection of Al-Mustaqbal Street and Trade Centre Street are scheduled to open in February 2027.
These include a three-lane tunnel towards Deira with a capacity of 4,500 vehicles per hour, a two-lane tunnel for left-turn movements between the two streets, and a one-lane tunnel serving One Central.
The RTA said that the overall project completion rate has reached 85%.
In February last year, MEED exclusively reported that the RTA had selected local firm Wade Adams to undertake improvement works on Al-Mustaqbal Street.
Planning for growth
The Dubai 2040 Urban Master Plan was launched in March 2021. Its launch referenced studies indicating that the emirate’s population will reach 5.8 million by 2040, up from 3.3 million in 2020. The daytime population is set to increase from 4.5 million in 2020 to 7.8 million in 2040.
In December 2022, Sheikh Mohammed Bin Rashid Al-Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, approved the 20-Minute City Policy as part of the second phase of the Dubai 2040 Urban Master Plan.
In addition to the road projects, the RTA’s Dubai Metro Blue Line extension and Dubai Metro Gold Line form part of Dubai’s plans to improve residents’ quality of life by cutting journey times, as outlined in the policy.
The policy aims for residents to have 80% of their daily requirements within a 20-minute journey, on foot or by bicycle. This goal will be achieved by developing integrated service centres with all necessary facilities and increasing population density around mass transit stations.
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Saudi Arabia approves new procurement law17 August 2026
Saudi Arabia’s Council of Ministers has approved a new Government Tenders and Procurement Law (GTPL), introducing changes to public procurement procedures and government contracting.
The Ministry of Finance announced the approval on 5 August.
The new law aims to strengthen governance and transparency, improve procurement planning and implementation, and promote fairness and equal opportunities in government contracting.
The changes give government entities greater flexibility in procurement while introducing new provisions that could affect contractors and suppliers, including contract variations, outstanding payments and procurement procedures.
Contract flexibility
According to a Ministry of Finance summary of the key amendments, one of the main changes allows government entities to increase existing contract items by up to 20% of the contract value. Contractor approval is required for increases exceeding 10%, while the total increase from adding new items or increasing existing items cannot exceed 20% of the contract value.
The amendments also introduce measures addressing outstanding payments to contractors. A government entity cannot make a new award when it has outstanding amounts owed to contractors for works or procurement and the required procedures have not been taken, after notification from the Ministry of Finance.
Exceptions apply where non-payment relates to ministry procedures or where the government entity has taken the required action on a claim but does not have sufficient budget allocations.
Single committee
Under the new law, the committees responsible for opening and examining bids will be merged into a single committee.
The maximum value for direct procurement will rise from SR100,000 ($26,700) to SR1m ($267,000) while government entities will be required to explain and document their use of direct procurement.
Direct procurement will also be permitted in cases involving research, development and innovation and certain contracts with professional practitioners.
The amendments reduce the minimum standstill period following a procurement award from five working days to three working days. Government entities will also be able to negotiate where the best bid exceeds the estimated cost plus the permitted contingency.
Localisation
The new framework includes provisions covering industrial localisation and knowledge transfer. The Ministry of Finance said it will issue rules for contracting for these purposes in cooperation with the Local Content and Government Procurement Authority.
A new regulation will also cover research, development and innovation, including tendering and contracting provisions for these activities.
Other changes involve contractors’ exposure to penalties. The maximum delay penalty on contracts, excluding supply contracts, will fall from 20% to 15% of contract value. The maximum penalty for non-performance in continuous-performance contracts will also fall from 20% to 15%.
The value of purchases exempt from providing a final guarantee will rise from SR100,000 ($26,700) to SR300,000 ($80,000). Additional exemptions will apply to contracts with professional practitioners and emergency or urgent cases.
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GCC reviews first phase of water interconnection study17 August 2026
The GCC General Secretariat has completed the first phase of a study examining the feasibility of developing water interconnection projects between GCC member states.
A two-day workshop reviewing the study’s findings concluded on 12 August at the headquarters of the GCC Interconnection Authority (GCCIA) in Dammam, Saudi Arabia.
The GCC General Secretariat organised the workshop in cooperation with GCCIA, with representatives from relevant authorities and experts in water, infrastructure and water security taking part.
Participants reviewed the first phase findings, including an assessment of existing water supply infrastructure and the actual water needs of GCC member states. They also discussed the technical requirements and data needed to complete the study.
The study is intended to identify practical options and feasible solutions for developing a regional water interconnection network. This includes establishing an implementation roadmap.
The initiative aims to improve the GCC states’ ability to respond to emergencies and crises and support continuity of water supplies.
First meeting
The workshop followed a virtual meeting on 22 July between the GCC General Secretariat and Saudi Arabia’s water authorities as part of the study.
That meeting, which also involved consultancy Artelia, reviewed the study’s methodology and implementation stages. These include assessing existing water systems across GCC states, their resilience and emergency readiness, and developing technical options for bilateral water interconnection projects.
In Saudi Arabia, the study is focused primarily on the Eastern Province and Riyadh. It is assessing water production and desalination facilities, transmission pipelines, strategic reservoirs, pumping stations and existing and planned projects.
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The 22 July meeting also discussed potential connection points and routes, water flow directions and the possibility of designing interconnection pipelines to operate in both directions.
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