meed-logo

line1 line2 line3
SIGN IN / REGISTER

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. 

 

https://image.digitalinsightresearch.in/uploads/NewsArticle/11540041/main.gif
Colin Foreman

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

Click here to register
Exclusive from Meed
Related Articles
  • Uncertainty increases for Shell’s $3.9bn gas project in Iraq

    11 June 2026

     

    Uncertainty is increasing for phase two of the Basra Gas Company (BGC) expansion project in Iraq amid fallout from the ongoing regional conflict that started when the US and Israel bombed Iran on 28 February.

    BGC is a joint venture of the Iraqi Ministry of Oil through its subsidiary South Gas Company (51%), London-headquartered Shell (44%) and Japan’s Mitsubishi Corporation (5%).

    In September last year, the World Bank’s International Finance Corporation (IFC) signed a $500m investment deal with BGC for the phase two project.

    The entire phase two project is estimated to be worth $3.9bn, according to the IFC, which says the money will be spent between 2025 and 2030.

    Of the $500m deal that was signed in September, $300m will be provided directly by the IFC, and this was approved by the IFC’s board on 14 January this year, less than two months before the US and Israel attacked Iran.

    The subsequent conflict and the disruption to shipping through the Strait of Hormuz have created major obstacles for the project, according to industry sources.

    One source said: “Many Western workers that were specialists in the oil and gas sector have now left the country due to security concerns.

    “On top of this, it was originally assumed that required equipment for the project could be brought in through the Strait of Hormuz and that operational cash flows could be relied upon to help fund the project.”

    Due to the major disruption to shipping crude exports through the Strait of Hormuz, Iraq has had to dramatically reduce oil production in the Basra region, and, as a result, associated gas production has declined as well.

    One source said: “Right now, the state-owned oil companies in Iraq are in the midst of a financial crisis and it is unlikely that they will be able to contribute to this project in the way that was originally envisioned.”

    The main focus of the BGC phase two expansion project is a new liquefied petroleum gas (LPG) refrigeration train to increase the overall capacity of the upstream facility, where LPG and condensate are obtained through processing of the associated natural gas.

    The scope of the project also includes the construction of a new 22-kilometre-long, 132kV overhead transmission line, which will help to meet the energy demand associated with the project.

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

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17178691/main.png
    Wil Crisp
  • PIF to work with Egypt’s TMG on Saudi real estate schemes

    11 June 2026

    Saudi Arabia’s Public Investment Fund (PIF) and Egyptian real estate conglomerate Talaat Moustafa Group (TMG) have signed a memorandum of understanding (MoU) to explore collaboration on mixed-use real estate projects across PIF-owned developments in Saudi Arabia.

    The non-binding agreement covers potential cooperation across the residential, commercial, hospitality and retail sectors, as well as integrated urban environments. PIF said the partnership would accelerate project delivery and value creation across its portfolio.

    TMG, which has nearly 55 years of experience developing large-scale integrated cities, communities and hospitality projects across Egypt, brings technical and managerial capacity to the collaboration. The company previously signed an agreement with Saudi Arabia’s National Housing Company (NHC) in early 2024 to develop more than 27,000 residential units at the Banan City project in Riyadh’s Al-Fursan suburb.

    The MoU also establishes a framework to attract additional investors to future project phases and is intended to expand private sector participation as investors, partners and suppliers.

    PIF said the agreement forms part of its broader strategy to diversify Saudi Arabia’s economy and develop its urban development and livability ecosystem – one of six strategic ecosystems under its 2026-30 strategy. That ecosystem spans housing, retail, office and community spaces and essential services.

    The MoU is subject to the satisfaction of certain conditions precedent and receipt of all necessary regulatory and internal approvals.

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17181887/main.png
    Colin Foreman
  • Egypt signs $420m Gabal El-Zeit wind agreements

    10 June 2026

    Egypt has signed agreements worth $420m for the investment, operation and power purchase of the 580MW Gabal El-Zeit wind power complex in the Red Sea region.

    Gabal El-Zeit 1 has a capacity of 240MW, while Gabal El-Zeit 2 and 3 have capacities of 220MW and 120MW, respectively.

    The agreements were signed between Egypt’s New and Renewable Energy Authority (NREA), the Egyptian Electricity Transmission Company (EETC) and Dubai-based Alcazar Energy.

    Under the agreements, Alcazar Energy will invest in, operate and manage the farms through a project company established under Egyptian law.

    The company will be responsible for technical operations, maintenance and efficiency upgrades while maintaining a minimum capacity of 580MW throughout the contract period.

    The Egyptian Electricity Transmission Company will purchase the electricity generated by the plant.

    The agreements follow earlier efforts to privatise the Gabal El-Zeit wind complex, involving a deal with UK-headquartered private equity firm Actis.

    According to the Egyptian government, the project supports the country’s state ownership policy and national energy strategy, which aim to increase the share of renewable energy in the electricity mix to 45%.

    The Gabal El-Zeit area on Egypt’s Red Sea coast is one of the country’s most established wind power development zones. The latest Gabal El-Zeit wind farm was completed in 2014, according to MEED Projects data. Germany’s Siemens Gamesa was the main contractor. 

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17170360/main.jpg
    Mark Dowdall
  • Majid Al-Futtaim awards $545m Ghaf Woods contract to ECC

    10 June 2026

    Majid Al-Futtaim Properties has appointed Engineering Contracting Company (ECC) as the main contractor for the Capria East, Capria West and Maravelle Residences developments at its Ghaf Woods community in Dubai, in a deal valued at AED2bn ($545m).

    The contract covers the construction of one-, two- and three-bedroom apartments and duplex residences across the two Capria clusters.

    The award adds to a series of major construction contracts Majid Al-Futtaim has issued across its Dubai communities in recent years.

    In May, local contractor Al-Sahel Contracting was awarded a AED700m contract for the Distrikt development, also at Ghaf Woods.

    In 2024, Majid Al-Futtaim awarded AED3bn in contracts for its Tilal Al-Ghaf community, appointing Innovo Build to build 94 waterfront villas at Elysian Mansions and United Engineering Construction (Unec) to deliver 130 villas at the Alaya development.

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17170744/main.jpg
    Colin Foreman
  • Saudi Arabia and Turkiye sign railway agreements

    10 June 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia and Turkiye have signed two memorandums of understanding (MoUs) to strengthen bilateral cooperation in the railway and logistics sectors, advancing Riyadh’s ambitions to become a global logistics hub.

    Transport and Logistics Services Minister Saleh Al-Jasser and Turkish Transport and Infrastructure Minister Abdulkadir Uraloglu signed the agreements at the ministry’s headquarters in Riyadh on 9 June, following ministerial talks held with a high-level Turkish delegation. Transport General Authority president Fawaz Al-Sahli and officials from the kingdom’s transport and logistics sector were also present.

    Agreement scope

    The first MoU covers logistics services and operations, including the exchange of expertise, policies and regulations. The second focuses on railway technologies, signalling and communication systems, railway digitalisation, human capacity development, the localisation of the railway industry and measures to reduce the sector’s environmental impact.

    More broadly, the agreements cover cooperation on railway standards and related innovations, the exchange of expertise on the design, operation and maintenance of rail projects, and engineering, infrastructure and safety standards.

    The two sides will also cooperate on research and development, with provision for joint workforce training through specialist railway academies.

    Riyadh said the agreements will help support its National Strategy for Transport and Logistics Services and Saudi Vision 2030, which seeks to position the kingdom as a logistics bridge connecting three continents.

    Turkish projects

    Turkish contractors have already established themselves as key players in the region’s rail sector. In 2012, Yapi Merkezi secured a $2.1bn contract for work on the Haramain high-speed rail network in Saudi Arabia, while Turkish firms Mapa and Limak are leading the ongoing civil works on Dubai’s $5.5bn Metro Blue Line project as part of a China Railway Rolling Stock Corporation (CRRC) consortium. Turkish consultancy Proyapi Muhendislik ve Musavirlik Anonim Sirketi has also won design contracts for the 111km Kuwait National Rail Road project.

    The agreements signed by Saudi Arabia and Turkiye may also give momentum to longstanding discussions around a rail corridor linking the GCC with Turkiye. The route, which has been discussed for years, has gained renewed impetus in recent months as the effective closure of the Strait of Hormuz has pushed regional governments to accelerate the development of overland trade alternatives.

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

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17169958/main.gif
    Colin Foreman