MENA Hospitality Market Set to Surpass $487 Billion by 2032

The Middle East and North Africa (MENA) hospitality and tourism sector is witnessing unprecedented growth. A recent report published ahead of the Future Hospitality Summit in Dubai indicates that the region's hospitality market is slated to rise from $310 billion in 2025 to over $487 billion by 2032.

This expansion is attributed to soaring tourism demand, an influx of new hotel developments, and significant governmental efforts aimed at luring international visitors. According to the World Travel and Tourism Council (WTTC), travel and tourism are anticipated to infuse approximately $367 billion into the Middle East’s economy this year, while creating 7.7 million jobs across the region.

Tourism Drives Economic Diversification

Several MENA nations are focused on diversifying their economies and reducing oil reliance through the tourism sector. Notably, Saudi Arabia and Egypt are at the forefront. Saudi Arabia aims to attract 150 million tourists annually by 2030, while Egypt is set to welcome 30 million international tourists by 2028.

According to experts, this tourism initiative is impactful. Amr El-Nady, JLL's head of Hotels and Hospitality for the Middle East and Africa, explains that both nations are enhancing tourism's contribution to their GDP—Saudi Arabia targets 10 percent, while Egypt aspires to reach 15 percent.

This tourism focus has triggered monumental hospitality investments, including significant projects like Saudi Arabia’s NEOM, the Red Sea Project, and AlUla, alongside Egypt’s New Administrative Capital and Ras Al Hekma developments, transforming these nations into prominent global destinations.

Visitor Spending Increases

The report underscores that international visitor spending in the Middle East is at an all-time high. It is predicted that visitor spending will rise to $194 billion this year, marking a 25 percent increase from pre-pandemic levels in 2019. Domestic expenditure is similarly on the uptrend, expected to reach $113 billion.

Saudi Arabia Leads Hotel Development

Leading the region in hotel construction, Saudi Arabia is set to develop a record 650 hotel projects by mid-2025, totaling over 161,000 rooms. Specifically, Saudi Arabia is working on 342 projects with 92,000 rooms, followed by Egypt with 127 projects (28,000 rooms) and the UAE with 100 projects (25,470 rooms). Other nations like Oman and Qatar are also expanding their hotel offerings to cater to rising demand.

El-Nady highlights that this growth opens doors for both international hotel chains and boutique operators. “From luxury desert resorts to traditional heritage hotels, developers are catering to evolving traveler preferences and supporting long-term economic goals,” he said.

Global Events Catalyze Growth

Major upcoming international events, including Expo 2030 and the FIFA World Cup 2034 in Saudi Arabia, are set to attract millions to the region. These events are also spurring investments in real estate and hospitality.

From January 2026 onward, select foreign investments in property within certain Saudi regions will be permitted. Experts predict this initiative will enhance the appeal for potential investors within the kingdom's flourishing hospitality and real estate sectors.

According to JLL's report, the hotel investment market remains robust, bolstered by a steady rise in tourist arrivals and consistent hotel performance throughout the region.

UAE as a Key Player

The United Arab Emirates continues to assert itself as a dominant force in regional hospitality. Dubai remains a top choice for both business and leisure guests.

As per Cavendish Maxwell, a real estate consultancy, Dubai witnessed hotel occupancy surge to 81 percent in the first half of 2025, a 2.5 percent increase from the previous year. The average daily room rate has reached $159, rising close to 5 percent.

By 2027, Dubai is slated to add around 10,000 new hotel rooms as investors maintain their confidence in the city’s tourism market.

Vidhi Shah, Director at Cavendish Maxwell, noted, “Dubai continues to steer the global hospitality arena, thanks to its unmatched safety, inclusivity, and connectivity, cementing its status as a top destination for international visitors and investors.”

Oman’s Expanding Tourism Scene

Oman is swiftly becoming a sought-after travel destination as well. The tourism sector is projected to contribute 5 percent to Oman’s GDP by 2030 and 10 percent by 2040, ranking as the country's second-largest industry after oil.

Last year, Oman’s hotel revenues surged by over 18 percent, amounting to $367 million, with hospitality sector employment increasing by 5 percent, totaling nearly 10,800 jobs.

Plans are in place to augment the hotel room inventory by 25 percent by 2030, adding 9,600 new rooms, including 2,600 by the end of 2025.

The Promising Future of Regional Tourism

The Future Hospitality Summit report concludes that the hotel and tourism industry in the Middle East is entering a golden era. Government initiatives in Saudi Arabia, the UAE, Egypt, and Oman are facilitating investment, infrastructure development, and attracting record tourist numbers.

As reported by the GCC Statistical Center, tourism in Gulf nations contributed $247 billion to the regional economy in 2024, signifying a 32 percent increase from 2019. Travel within GCC countries has also surged, with 19.3 million people visiting neighboring nations.

Additionally, the Saudi Central Bank's report reveals that international tourists spent over $13 billion in Saudi Arabia during the first quarter of 2025, marking a 10 percent rise from the previous year.

Experts assert that this rapidly growing tourism sector will continue to create millions of jobs, propel economic diversification, and reshape the MENA region's global image as a premier destination for travel, culture, and hospitality.