From market resilience to infrastructure reinvention, the Middle East and Africa are shaping a powerful future for regional hospitality and tourism growth. This week, we highlight industry leaders that are spotlighting top-performing markets, long-term demand cycles and transformational giga-projects that will define investment priorities over the coming decade.
“Robust growth and resilient demand across the region,” says Hala Matar Choufany of HVS
To begin with, tourism across the Middle East is accelerating due to increased air connectivity, rising leisure demand and broader destination diversification efforts. According to Choufany, the region will continue outperforming expectations with a growing visitor base from Europe, Asia, and Africa contributing momentum. Currently, the GCC hotel supply stands at around 500,000 rooms, with projections reaching 800,000 rooms across the region within five years. While Dubai continues to post the strongest occupancy levels, Riyadh has led on average daily rates, reaching USD 400 across 2024 metrics. This resulted in Saudi Arabia’s RevPAR hitting USD 230, while Qatar and Oman experienced uneven performance due to market-specific operational challenges. However, Choufany notes that regional growth remains solid, supported by infrastructure improvements, economic activity and increased focus on sustainable travel preferences. She believes ADR will stabilize in most Gulf markets, although some destinations may witness modest gains depending on future demand indicators. Overall, the long-term outlook remains optimistic, but operators must plan strategically as supply increases and guest expectations become more complex. Click here for the full report.
“Riyadh is the heartbeat of Saudi’s transformation,” states James Lewis of Knight Frank
Meanwhile, Riyadh continues driving Saudi Arabia’s economic reinvention, emerging as a magnet for young professionals and high-value real estate development projects. According to Lewis, more than 50,000 young Saudis have migrated to Riyadh over the last five years alone. Indeed, this shift has been driven by job creation, with the capital generating half of the kingdom’s new roles since 2018. Consequently, this has placed upward pressure on real estate, with housing prices rising by 50 percent across the past four years. Since 2016, over USD 314 billion in projects have been announced in Riyadh, spanning real estate, infrastructure, and transport investment initiatives. To date, more than USD 60 billion worth of construction contracts have been awarded across major projects supporting the city’s long-term vision. By 2030, the capital is expected to deliver 340,000 homes, 4.6 million square meters of offices, and 28,800 hotel rooms. Furthermore, 2.6 million square meters of retail space will be added, nearly doubling the city’s commercial footprint over the next five years. Importantly, Riyadh’s development momentum is tied to upcoming mega-events, including Expo 2030 and the 2034 FIFA World Cup preparations. Notably, Expo 2030 alone is forecast to generate USD 94.5 billion in economic activity over 25 years, boosting Riyadh’s global profile. Click here for the full report.
