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

The hospitality and tourism landscape in the Middle East and North Africa (MENA) is experiencing unprecedented growth. A recent report unveiled just before the Future Hospitality Summit in Dubai indicates that the region's hospitality sector is projected to rise from $310 billion in 2025 to an impressive $487 billion by 2032.

The report attributes this remarkable growth to an influx of tourists, new hotel constructions, and significant government initiatives aimed at attracting global visitors. According to the World Travel and Tourism Council (WTTC), the travel and tourism sector is anticipated to contribute around $367 billion to the economy of the Middle East this year and sustain approximately 7.7 million jobs across the region.

Tourism Driving Economic Diversification

Countries in the Middle East are actively seeking to lessen their reliance on oil by diversifying their economies through tourism. Leading this charge are Saudi Arabia and Egypt. Saudi Arabia's goal is to draw in 150 million tourists annually by 2030, while Egypt aims to welcome 30 million international visitors by 2028.

Experts believe this emphasis on tourism could lead to substantial economic gains. Amr El-Nady, who heads Hotels and Hospitality for the Middle East and Africa at JLL, remarked that both Saudi Arabia and Egypt are significantly increasing the contribution of tourism to their national income—Saudi Arabia targets 10 percent of its GDP, with Egypt aiming for 15 percent.

This tourism strategy has resulted in massive investments in hospitality projects, such as Saudi Arabia’s NEOM, the Red Sea Project, and AlUla, along with Egypt's New Administrative Capital, Ras Al Hekma, and South Med developments. These ambitious initiatives are reshaping both nations into prominent global tourist hotspots.

Rising Visitor Expenditure

The report also underscores a surge in spending by international visitors to the Middle East. Visitor expenditure is expected to hit $194 billion this year, marking a nearly 25 percent increase compared to pre-pandemic levels in 2019. Domestic spending is also anticipated to climb, reaching $113 billion.

Saudi Arabia at the Forefront of Hotel Development

Saudi Arabia leads the region in new hotel projects. As of mid-2025, the Middle East has a record 650 hotel projects under development, representing over 161,000 rooms.

Among these, Saudi Arabia boasts 342 projects with 92,000 rooms, followed by Egypt with 127 projects (28,000 rooms) and the UAE with 100 projects (25,470 rooms). Oman and Qatar are also expanding their hotel offerings to meet the surging demand.

El-Nady noted this growth opens new opportunities for international hotel brands as well as smaller boutique establishments. “Developers are creating everything from luxury desert resorts to traditional heritage hotels,” he explained. “This trend caters to evolving traveler preferences and aligns with long-term economic transformation goals.”

Global Events Spark Growth

Upcoming major events like Expo 2030 and FIFA World Cup 2034, both taking place in Saudi Arabia, are projected to attract millions of visitors to the region, while simultaneously boosting real estate and hospitality investments.

Beginning January 2026, new regulations will allow foreigners to purchase property in select areas of Saudi Arabia, a move anticipated to draw even more investors to the rapidly growing hospitality and real estate sectors.

JLL’s report highlights that the hotel investment market continues to be robust, underpinned by a steady influx of tourists and solid performance across hotels in the region.

UAE's Continued Leadership

The United Arab Emirates remains one of the dominant forces in the regional hospitality market. Dubai continues to be a preferred destination for both business and leisure travelers.

Cavendish Maxwell, a real estate advisory firm, reported that hotel occupancy in Dubai reached 81 percent in the first half of 2025, an increase of 2.5 percent compared to the previous year. The average daily room rate rose to $159, nearly a 5 percent increase.

Around 10,000 new hotel rooms are on track to open in Dubai by 2027, as investor confidence in the city’s tourism sector remains strong.

Vidhi Shah, Director at Cavendish Maxwell, stated, “Dubai continues to excel in the global hospitality arena. It provides exceptional safety, inclusiveness, and outstanding connectivity, ensuring its position remains strong for international visitors and investors alike.”

Oman's Flourishing Tourism Sector

Oman is rapidly becoming a sought-after travel destination. By 2030, tourism is expected to contribute 5 percent to Oman's GDP, rising to 10 percent by 2040, positioning it as the nation’s second-largest industry after oil.

Oman’s hospitality revenue surged by over 18 percent last year, totaling $367 million, with employment in the sector increasing by 5 percent, now employing nearly 10,800 individuals.

The country plans to increase its hotel room capacity by 25 percent by 2030, incorporating 9,600 additional rooms, including 2,600 rooms anticipated to be added by the end of 2025.

A Bright Future for Regional Tourism

The Future Hospitality Summit report concludes that the hotel and tourism sector in the Middle East is on the verge of a transformative era. Initiatives across Saudi Arabia, the UAE, Egypt, and Oman are driving investment, fostering new infrastructure, and welcoming unprecedented tourist numbers.

As reported by the GCC Statistical Center, tourism across GCC nations contributed $247 billion to the regional economy in 2024—an increase of 32 percent compared to 2019. Travel within the GCC has also surged, with 19.3 million individuals visiting neighboring countries.

Meanwhile, data from the Saudi Central Bank revealed that international tourists spent over $13 billion in Saudi Arabia during the first quarter of 2025, marking a 10 percent rise year-on-year.

Experts predict that this rapidly expanding tourism sector will continue to generate millions of jobs, promote economic diversification, and reshape the global perception of the MENA region as a premier destination for travel, culture, and hospitality.