Saudi Arabia has approved 19 hospitality projects worth SAR6.7bn ($1.8bn) under its Hospitality Investment Enablers (HIE) programme, the Saudi Press Agency reported on October 19.
The first batch will add more than 3,000 hotel rooms, about 40% of them in coastal destinations, as the kingdom expands capacity ahead of Expo 2030 in Riyadh and the 2034 FIFA World Cup. When the programme launched in March 2024, the Ministry of Tourism said it aimed to attract up to SAR42bn ($11bn) of private investment and 42,000 room keys, so the first approvals amount to about 16% of the investment goal and around 7% of the rooms. Riyadh is pairing the build-out with events such as the second TOURISE summit in March 2027.
The projects span five destinations and are expected to create more than 17,000 jobs, the Ministry of Tourism and the Ministry of Investment said at a joint event in Riyadh. By 2030 they should contribute more than SAR2.4bn a year directly to GDP and over SAR5.3bn in local content through demand for locally sourced goods, services and materials.
“By expanding hospitality capacity in high-potential destinations, we are doing more than adding rooms,” Minister of Tourism Ahmed Al-Khateeb said. “The first approved projects reflect investor confidence in the opportunities offered by Saudi Arabia’s tourism sector.”
Minister of Investment Fahad Al-Saif called the programme “a model of government collaboration to develop enablers that strengthen private-sector participation”. He said tourism is a priority of the National Investment Strategy.
The first project is due to open by the end of 2026, with the last becoming operational in 2029. The ministries expect the projects to generate wider demand for food and beverage, retail and entertainment in the host destinations.
The HIE programme is run by the Ministry of Tourism with the Ministry of Investment and offers targeted support to cut operating costs for approved hotel projects. Incentives announced at its launch included access to government-owned land on favourable terms and streamlined project development.
