Saudi tourism numbers cross 100 million
22 February 2024
Saudi Arabia has confirmed that it met its target for the tourism sector by welcoming 100 million tourists in 2023.
The landmark announcement was made by Tourism Minister Ahmed Bin Aqeel Al Khateeb at the Private Sector Forum held by the Public Investment Fund (PIF) in Riyadh in early February.
The kingdom has outperformed expectations. When tourism e-visas were first launched in the country in September 2019, the aim of Riyadh’s National Tourism Strategy was for the kingdom to receive 100 million visits a year by 2030, compared to about 41 million at the time.
Al Khateeb also revealed that the tourist numbers comprise 77 million domestic and 27 million international visitors, generating revenues of SR100bn ($27bn) for the kingdom.
Saudi Arabia wants more growth, with the minister outlining future tourism plans that include increasing tourist numbers to 150 million by the year 2030, with a split of 80 million domestic and 70 million international tourists.
The minister also disclosed Saudi Arabia’s investment in human capital within the tourism sector. Over 100,000 young people received training in 2023, with 15,000 of them attending premier institutes globally to prepare for careers in tourism.
This initiative is part of a broader commitment to enhancing the sector’s workforce capabilities and is supported by the Human Resources Development Fund’s efforts to improve salary structures.
Al Khateeb also emphasised the importance of fostering a conducive environment for investment in tourism.
He pointed to the establishment of the Tourism Development Fund, which has already financed more than 50 projects with a total investment of SR35bn. Over the past year, it has signed several deals and agreements with hotel investors and operators such as Hyatt, Radisson Hotel Group and Minor Hotels for the development of new properties in the kingdom.
Al Khateeb pointed to the establishment of the Tourism Development Fund, which has already financed more than 50 projects with a total investment of SR35bn
Hotel pipeline
Saudi Arabia’s tourism strategy is supported by a robust pipeline of hotel developments. While some of these are being developed by pure private sector developers, the majority are being built by the PIF subsidiaries that are leading the development of major projects across the kingdom, including the five official gigaprojects.
Over the past two months, there has been a raft of hotel projects launched in the kingdom, most notably for the Gulf of Aqaba development at Neom. They include Zardun, which will be a 4 square- kilometre tourism destination featuring three luxury boutique hotels comprising 100 rooms and suites.
In November, Neom also launched Siranna, a 65-key hotel in the Gulf of Aqaba.
Other hotel projects are at the tendering stage. For example, Saudi Arabia’s Destinations Development Company, a wholly-owned subsidiary of the PIF, has issued a tender for the main contract to build the Monolith resort in the Al Ula region, and the Mohammed Bin Salman Foundation (Misk Foundation) has invited companies to bid for a contract to construct an Indigo-branded hotel and serviced apartments at Prince Mohammed Bin Salman Nonprofit City in Riyadh.
According to regional projects tracker MEED Projects, there are $67bn-worth of hotel schemes in the kingdom at various stages of development. There are projects estimated to be worth $11bn in the study phase and $27bn-worth of projects under construction.
For construction contract awards, the hotel sector’s performance has been mixed. The past five years have been pivotal, with a total of $8.6bn in contracts awarded, the bulk of which came in the past two years.
After a lull between 2018 and 2021, there was a spike in 2022, with $3.8bn-worth of contract awards as development accelerated on key projects in the kingdom, such as The Red Sea Project, which includes a wide range of hotel properties.
In 2023, there were $2bn-worth of hotel construction contract awards, as the kingdom maintained a high level of investment in the sector, albeit at a lower level than in 2022. For 2024, by early February there had been $168m-worth of hotel construction contract awards.
Welcoming guests
The first hotels at Saudi Arabia’s gigaprojects, which aim to transform the kingdom’s economy by developing sectors such as tourism, have opened for business.
In October last year, Red Sea Global, which is developing The Red Sea Project and Amaala, welcomed guests to the Six Senses Southern Dunes, the first hotel to open at the destination.
Other gigaprojects with significant hotel components include Neom, the cultural and historical destination of Diriyah, and Qiddiya entertainment city.
Hotels also form a critical part of the development of Al Ula; the holy cities of Mecca and Medina, which receive the majority of the kingdom’s religious tourists; and other destinations including Jeddah and regions such as Asir.
Register for MEED's guest program now to access this article.
Exclusive from Meed
-
Egypt seeks to accelerate gas pipeline project with Libya10 November 2026
-
Omani company signs Kuwait drilling contract10 November 2026
-
Adnoc Drilling wins $315m Kuwait offshore rig deals10 November 2026
-
Aramco-backed firm tenders logistics hub expansion9 November 2026
-
Prequalification begins for multibillion-dollar Dubai road9 November 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
-
Egypt seeks to accelerate gas pipeline project with Libya
10 November 2026
Egypt aims to accelerate a range of energy projects with Libya, including gas pipeline links, according to a statement from the Egyptian Foreign Minister Badr Abdelatty.
Other projects include a scheme to refine Libyan crude in Egypt and an electricity interconnection.
Abdelatty’s comments came in a ministry statement after a meeting with Libya’s acting oil and gas minister, Khalifa Abdulsadek, in the Libyan capital of Tripoli.
Egypt is currently trying to address an energy squeeze that has escalated due to elevated global liquefied natural gas (LNG) prices since the start of the US-Israeli war on Iran in February of this year.
In his statement, Abdelatty called for cooperation on petroleum products and the completion of projects to refine Libyan oil in Egypt and re-export it.
He also said that Abdulsadek would visit Cairo soon to continue technical talks with Egypt’s petroleum and electricity ministers.
The statement did not provide details on costs or the status of the projects.
Plans for new gas pipeline links with Libya are just one of several ambitious gas pipeline plans Egypt is pursuing.
In October, the Italian oil and gas company Eni signed the main engineering, procurement, construction and drilling contracts for a project to export gas from reserves in Cyprus using a major pipeline to Egypt.
The project includes contracts with several companies that will develop infrastructure in both Egypt and Cyprus.
The awards included a $170m contract won by Egypt’s Petrojet for a new onshore gas pipeline in Egypt that will help transport gas to Egypt’s Damietta LNG facility.
https://image.digitalinsightresearch.in/uploads/NewsArticle/21273777/main.jpg -
Omani company signs Kuwait drilling contract
10 November 2026
Oman’s MBPS has signed a drilling rig contract worth $127.3m with state-owned upstream operator Kuwait Oil Company (KOC).
Under the terms of the deal, MBPS will supply and operate three newly built 1,000-horsepower land rigs for drilling and workover operations, according to a company statement.
The UAE-based oil field services company Adnoc Drilling is a majority shareholder in MBPS.
The chief executive of MBPS, Salim Al-Harthy, said: “This is another important milestone for MBPS and a strong reflection of KOC’s confidence in our capabilities.
“It further strengthens our presence in Kuwait and our commitment to delivering safe, reliable and efficient drilling and workover services across the region.”
He : “My sincere appreciation to KOC for their continued trust, and to our MBPS team for their hard work and dedication in making this possible.”
In October last year, KOC said it planned to spend KD1.2bn ($3.92bn) on its exploration drilling programme through 2030.
The spending was part of a KD9.8bn budget, the company’s biggest ever, allocated for drilling and maintenance of up to 6,193 wells by the end of this decade.
https://image.digitalinsightresearch.in/uploads/NewsArticle/21273731/main.png -
Adnoc Drilling wins $315m Kuwait offshore rig deals
10 November 2026
Register for MEED’s 14-day trial access
Abu Dhabi National Oil Company (Adnoc Group) subsidiary, Adnoc Drilling, has been selected for two offshore drilling rig contracts in Kuwait with a combined maximum value of KD96.55m ($315m), according to documents published by Kuwait’s Official Gazette.
The Higher Purchasing Committee of state-owned Kuwait Petroleum Corporation (KPC) has given approval for its subsidiary Kuwait Oil Company (KOC) to award the contracts to the Abu Dhabi-listed drilling contractor after Adnoc Drilling submitted the lowest compliant bids.
While the maximum combined contract value has been confirmed as KD96.55m ($315m), the individual contract values, rig identities, durations and expected commencement dates have not been disclosed.
The approval comes as Kuwait moves to expand offshore exploration and development following a series of discoveries in its territorial waters.
It is currently unclear how Kuwait will provide security for its planned offshore oil and gas projects in the Gulf, adding uncertainty to the outlook for these plans.
On 5 October, KPC chief executive Shaikh Nawaf Al-Sabah reiterated the company’s commitment to developing three major offshore oil discoveries in the region.
KPC initially launched the Al-Seef project to develop the three fields in February, just weeks before the US and Israel attacked Iran, triggering a regional war that has sparked a crisis in Kuwait’s oil and gas sector.
The regional conflict has seriously disrupted shipping through the Strait of Hormuz, a key export route for Kuwaiti oil.
The war has also led to dozens of attacks on Kuwaiti oil and gas infrastructure, with at least one causing damage to a Kuwaiti offshore platform.
This attack took place on 12 July, when a drone struck a KOC offshore drilling platform in Kuwaiti territorial waters, causing damage to the platform and injuring one worker.
https://image.digitalinsightresearch.in/uploads/NewsArticle/21273678/main2430.jpg -
Aramco-backed firm tenders logistics hub expansion
9 November 2026
Asmo, the logistics joint venture of Saudi Aramco and DHL Supply Chain, has set a 15 November deadline for a contract to expand the logistics complex at King Salman Energy Park (Spark) in Saudi Arabia’s Eastern Province.
The logistics hub will add over 124,000 square metres (sq m) at Spark.
Al-Khobar-based engineering firm House of Consulting Office is the project consultant.
The tender for the expansion works comes shortly after Asmo awarded an estimated SR820m ($218m) contract to build the logistics complex’s first phase in May this year.
The overall project will feature a 43,000 sq m, temperature-controlled Grade A warehouse; more than 3,000 sq m of offices and staff amenities; 5,300 sq m dedicated to chemicals storage; and an open yard covering about 1.2 million sq m.
Asmo signed an agreement with Bahrain‑headquartered Arcapita Group Holdings in February to deliver the project at Spark.
Planned for large-scale industrial use, the site is expected to incorporate advanced warehouse and building management systems, end-to-end digital connectivity, automation and robotics.
It will also be developed in line with internationally recognised sustainability standards, featuring solar photovoltaic readiness, electric-vehicle charging infrastructure and a target of Leed Gold certification.
The development aims to support the next stage of Saudi Arabia’s logistics and supply chain expansion.
Under the deal structure, Arcapita will provide funding and retain ownership of the asset, while Asmo will develop the facility and then lease and operate it under a 22-year occupational lease.
According to a statement, “the scheme will be executed via a forward-funding model, underscoring a long-term commitment to national infrastructure”.
Asmo added that this will be its first purpose-built logistics centre and one of four strategic locations planned to anchor its nationwide logistics network, aligned with the National Transport and Logistics Strategy under Saudi Vision 2030.
https://image.digitalinsightresearch.in/uploads/NewsArticle/21267403/main.gif -
Prequalification begins for multibillion-dollar Dubai road
9 November 2026
Dubai’s Roads & Transport Authority (RTA) has begun prequalifying contractors for a design-and-build contract for a multibillion-dollar new road that will run parallel to Sheikh Zayed Road.
Contractors have until 30 November to submit their prequalification statements.
The latest development follows contractors’ expressions of interest for the project on 10 October, as MEED reported.
The project’s scope covers about 30 kilometres (km) of works. These include about 15km of viaduct along First Al-Khail Street and more than 14.5km of bridge ramps, along with other associated infrastructure works.
The project is another significant initiative aimed at alleviating pressure on the existing Sheikh Zayed Road section from Hadiqa Street to Hessa Street.
Dubai has previously explored bold concepts to expand capacity on Sheikh Zayed Road, including proposals to introduce double-decker sections to add extra lanes without widening the existing corridor.
The idea was discussed in the context of rising congestion and limited right-of-way along one of the city’s busiest arterial roads, with elevated decks potentially carrying through traffic while existing at-grade lanes served local access.
The plans ultimately became standalone schemes, with subsequent efforts focusing instead on corridor-wide upgrades, interchange improvements and complementary public transport expansions to manage demand more sustainably.
The latest project aligns with Dubai’s continued investment in upgrading and expanding its road network to keep pace with rapid population growth and rising commuting demand.
Planning for growth
Dubai launched the 2040 Urban Master Plan in March 2021, referencing 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 to ensure residents can meet 80% of their daily needs 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.
https://image.digitalinsightresearch.in/uploads/NewsArticle/21266194/main.gif