According to Knight Frank’s Saudi Report 2025, Saudi Arabia is accelerating its economic transformation under Vision 2030, supported by a USD 1.3 trillion real estate and infrastructure pipeline.
Saudi Arabia’s tourism and hospitality sectors are expanding rapidly, driven by strong demand, rising visitor numbers and large-scale development pipelines. Moreover, contracts worth USD 196 billion have already been awarded, reflecting strong execution momentum across the kingdom. As a result, the market is preparing for over 1 million new homes and more than 358,000 hotel rooms.
Tourism contribution
Tourism continues to emerge as a central pillar of Saudi Arabia’s diversification strategy, driven by strong domestic and international demand. In 2024, tourism spending reached 6.1 percent of GDP, surpassing pre-pandemic levels and reflecting sustained sector growth momentum. Meanwhile, domestic tourism remains dominant, accounting for nearly 74 percent of total visitors across the kingdom and driving consistent travel activity. Additionally, travel frequency remains high, with 66 percent of residents consistently travelling domestically at least once every three months. As a result, this sustained demand is supporting continued investment in destinations, infrastructure and experiences across Saudi Arabia’s rapidly evolving tourism landscape.
Hospitality pipeline
Saudi Arabia’s hospitality sector is witnessing unprecedented expansion, supported by large-scale developments and rising visitor demand across key destinations nationwide. Currently, the kingdom operates approximately 171,650 hotel rooms, with a significant development pipeline expected for delivery across multiple regions by 2030. Moreover, more than 358,000 additional hotel keys are planned, reflecting the scale of investment across giga projects and major cities. Luxury and upscale segments continue to dominate supply, accounting for the majority of existing inventory and future pipeline developments nationwide. As a result, Saudi Arabia is positioning itself as a leading global destination for premium hospitality, while significantly expanding diverse accommodation offerings.
Non-oil growth
Saudi Arabia’s non-oil economy continues to expand steadily, supporting long-term diversification goals. In the first half of 2025, GDP grew by 3.9 percent, driven primarily by the non-oil sector’s performance. Additionally, non-oil activities recorded 4.7 percent growth, highlighting the success of ongoing reforms. Therefore, the kingdom’s economic resilience is increasingly anchored in diversified sectors.
Construction projects
The construction sector remains a key enabler of Saudi Arabia’s transformation agenda. Investment in construction increased to 13.4 percent of GDP, reflecting rising activity across projects. Furthermore, giga projects such as NEOM and the Red Sea continue progressing from planning into execution phases. As a result, demand for contractors and specialized services is expected to remain strong in the coming years.
Visitor numbers surge
Saudi Arabia welcomed 116 million tourists in 2024, marking a record performance for the sector. Of these, 29.7 million were international visitors, while domestic tourism reached 86.2 million trips. Moreover, total tourism spending reached SAR 284 billion, underlining the sector’s economic importance. Notably, non-religious travel now accounts for 59 percent of international visits, reflecting diversification in visitor profiles.
Saudi Arabia is targeting 150 million annual visitors by 2030, further reinforcing its tourism ambitions. Additionally, continued investment in infrastructure, hospitality and entertainment will support sustained sector growth. Therefore, the kingdom is set to strengthen its position as a global tourism and hospitality hub in the years ahead.
Saudi Arabia tourism and hospitality boom drives USD 1.3 trillion development pipeline
According to Knight Frank’s Saudi Report 2025, Saudi Arabia is accelerating its economic transformation under Vision 2030, supported by a USD 1.3 trillion real estate and infrastructure pipeline.
Saudi Arabia’s tourism and hospitality sectors are expanding rapidly, driven by strong demand, rising visitor numbers and large-scale development pipelines. Moreover, contracts worth USD 196 billion have already been awarded, reflecting strong execution momentum across the kingdom. As a result, the market is preparing for over 1 million new homes and more than 358,000 hotel rooms.
Tourism contribution
Tourism continues to emerge as a central pillar of Saudi Arabia’s diversification strategy, driven by strong domestic and international demand. In 2024, tourism spending reached 6.1 percent of GDP, surpassing pre-pandemic levels and reflecting sustained sector growth momentum. Meanwhile, domestic tourism remains dominant, accounting for nearly 74 percent of total visitors across the kingdom and driving consistent travel activity. Additionally, travel frequency remains high, with 66 percent of residents consistently travelling domestically at least once every three months. As a result, this sustained demand is supporting continued investment in destinations, infrastructure and experiences across Saudi Arabia’s rapidly evolving tourism landscape.
Hospitality pipeline
Saudi Arabia’s hospitality sector is witnessing unprecedented expansion, supported by large-scale developments and rising visitor demand across key destinations nationwide. Currently, the kingdom operates approximately 171,650 hotel rooms, with a significant development pipeline expected for delivery across multiple regions by 2030. Moreover, more than 358,000 additional hotel keys are planned, reflecting the scale of investment across giga projects and major cities. Luxury and upscale segments continue to dominate supply, accounting for the majority of existing inventory and future pipeline developments nationwide. As a result, Saudi Arabia is positioning itself as a leading global destination for premium hospitality, while significantly expanding diverse accommodation offerings.
Non-oil growth
Saudi Arabia’s non-oil economy continues to expand steadily, supporting long-term diversification goals. In the first half of 2025, GDP grew by 3.9 percent, driven primarily by the non-oil sector’s performance. Additionally, non-oil activities recorded 4.7 percent growth, highlighting the success of ongoing reforms. Therefore, the kingdom’s economic resilience is increasingly anchored in diversified sectors.
Construction projects
The construction sector remains a key enabler of Saudi Arabia’s transformation agenda. Investment in construction increased to 13.4 percent of GDP, reflecting rising activity across projects. Furthermore, giga projects such as NEOM and the Red Sea continue progressing from planning into execution phases. As a result, demand for contractors and specialized services is expected to remain strong in the coming years.
Visitor numbers surge
Saudi Arabia welcomed 116 million tourists in 2024, marking a record performance for the sector. Of these, 29.7 million were international visitors, while domestic tourism reached 86.2 million trips. Moreover, total tourism spending reached SAR 284 billion, underlining the sector’s economic importance. Notably, non-religious travel now accounts for 59 percent of international visits, reflecting diversification in visitor profiles.
Saudi Arabia is targeting 150 million annual visitors by 2030, further reinforcing its tourism ambitions. Additionally, continued investment in infrastructure, hospitality and entertainment will support sustained sector growth. Therefore, the kingdom is set to strengthen its position as a global tourism and hospitality hub in the years ahead.
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