MENA Hospitality Sector Poised to Surpass $487 Billion by 2032: New Insights

Post by : Saif Nasser

The Middle East and North Africa (MENA) hospitality and tourism landscape is on an unprecedented growth trajectory. A recent report released prior to the Future Hospitality Summit in Dubai forecasts that the region's hospitality market will escalate from $310 billion in 2025 to over $487 billion by 2032.

This expansion is accredited to robust tourism demand, fresh hotel constructions, and significant government initiatives aimed at drawing global visitors. The World Travel and Tourism Council (WTTC) estimates that the travel and tourism sector will inject approximately $367 billion into the Middle Eastern economy this year, generating 7.7 million jobs throughout the region.

Tourism Driving Economic Diversification

Various nations in the Middle East are striving to lessen their oil dependency, focusing on tourism as a vital economic pillar. Saudi Arabia and Egypt are at the forefront of this transition. The Kingdom aims to attract 150 million tourists per year by 2030, while Egypt targets 30 million international visitors by 2028.

Industry experts assert that this shift towards tourism will be transformative. Amr El-Nady, head of Hotels and Hospitality for the Middle East and Africa at JLL, noted that both countries are enhancing the tourism sector's contribution to national income—Saudi Arabia aims for 10 percent of its GDP from tourism, while Egypt aspires for 15 percent.

These efforts are driving major hospitality investments, with notable projects such as Saudi Arabia’s NEOM, the Red Sea Project, and AlUla, alongside Egypt’s New Administrative Capital, Ras Al Hekma, and the South Med developments, which are setting the stage for these nations to emerge as global tourism hotspots.

Increased Visitor Spending

The report further indicates that international visitor spending in the Middle East is reaching new heights. Total spending is projected to hit $194 billion this year, marking an almost 25 percent increase from pre-pandemic levels in 2019. Domestic tourism spending is also on the rise, expected to reach $113 billion.

Saudi Arabia at the Forefront of Hotel Development

At present, Saudi Arabia is leading in hotel construction within the region. By mid-2025, the Middle East will witness a record 650 hotel projects in development, providing over 161,000 rooms.

Out of these projects, 342 amounting to 92,000 rooms are located in Saudi Arabia, followed by Egypt with 127 projects (28,000 rooms) and the UAE with 100 projects (25,470 rooms). Additionally, Oman and Qatar are investing in new hotels to satisfy growing demand.

El-Nady highlighted that this expansion is creating opportunities for both renowned international hotel brands and smaller boutique establishments. “Developers are crafting a spectrum from luxury desert resorts to traditional heritage hotels,” he stated, emphasizing how this diversification caters to evolving traveler preferences and complements broader economic transformation goals.

Global Events Catalyze Growth

Major upcoming global events such as Expo 2030 and the FIFA World Cup 2034, both in Saudi Arabia, are set to attract millions of visitors, simultaneously fueling real estate and hospitality investments.

Beginning January 2026, foreign investors will be permitted to purchase property in designated areas in Saudi Arabia. This policy is anticipated to draw more investors into the thriving hospitality and real estate markets.

JLL’s findings emphasize the robustness of the hotel investment sector, bolstered by soaring tourist arrivals and consistent performance across the region’s hospitality venues.

UAE as a Dominant Player

The United Arab Emirates continues to shine as a key player in the regional hospitality landscape. Dubai remains a preferred choice for both business and leisure travelers.

According to real estate advisory firm Cavendish Maxwell, hotel occupancy in Dubai reached 81 percent in the first half of 2025—reflecting a 2.5 percent increase compared to the prior year. The average daily room rate increased to $159, a nearly 5 percent rise.

With around 10,000 new hotel rooms anticipated to open in Dubai by 2027, investors demonstrate continuous confidence in the city's tourism sector.

Vidhi Shah, Director at Cavendish Maxwell, remarked, “Dubai continues to lead the global hospitality scene with its world-class safety, inclusivity, and excellent connectivity, ensuring its leading position in attracting international visitors and investors alike.”

Oman's Expanding Tourism Sector

Oman is emerging rapidly as a favored travel destination, with tourism projected to contribute 5 percent to its GDP by 2030 and 10 percent by 2040, positioning it as the second-largest industry after oil.

In the last year, Oman’s hotel revenues surged over 18 percent, reaching $367 million, while the hospitality sector saw employment growth of 5 percent, with nearly 10,800 individuals working in the industry.

The country plans to increase its hotel capacity by 25 percent by 2030, which includes adding 9,600 new rooms, with 2,600 of these expected by the end of 2025.

The Future of Tourism in the Region

The conclusion drawn in the Future Hospitality Summit report indicates that the hotel and tourism sector in the Middle East is entering a prosperous period. Government initiatives in Saudi Arabia, the UAE, Egypt, and Oman are catalyzing investment, developing new infrastructure, and welcoming record tourist numbers.

The GCC Statistical Center reported that tourism contributed $247 billion to the regional economy in 2024—a 32 percent increase compared to 2019. Additionally, inter-GCC travel witnessed a significant boost, with 19.3 million people visiting neighboring countries.

A report from the Saudi Central Bank revealed that international tourists spent over $13 billion in Saudi Arabia during the first quarter of 2025—a 10 percent increase from the previous year.

Experts postulate that this rapidly expanding tourism sector will continue to sustain millions of jobs, foster economic diversification, and reposition the MENA region as a leading global tourist destination for travel, culture, and hospitality.