21/10/2026 04:43 AST
Saudi Arabia has approved 19 projects across five tourism destinations under its Hospitality Investment Enablers Program, which is expected to attract SR6.7 billion ($1.78 billion) in investment and create more than 17,000 jobs.
The initiatives will be rolled out across five destinations, including Al-Baha, Al-Ahsa, Jeddah, Asir and the Eastern Province, with 19 companies, including BSF Capital, Sedal, Rikaz and Jenan among the participating firms.
The undertaking, led by the Ministry of Tourism in cooperation with the Ministry of Investment, provides targeted support to reduce operating costs and boost the viability and investment appeal of hospitality projects across selected tourism destinations in the Kingdom, the Saudi Press Agency reported.
Saudi Arabia expands tourism investment
The Kingdom's tourism pipeline includes more than $120 billion in investment, with over 200,000 hotel rooms expected to be added by 2030, with around half coming from private-sector investment, according to a June report by the Ministry of Tourism.
Saudi Arabia welcomed around 123 million domestic and international tourists in 2025, while total tourism spending reached a record SR304 billion, up 7 percent from 2024, according to the Ministry of Tourism's annual statistical report.
"The Hospitality Investment Enablers Program reflects our long-standing commitment to enabling private-sector investment and responding to the Kingdom's growing tourism demand. By expanding hospitality capacity in high-potential destinations, we are doing more than adding rooms. We are unlocking new investment opportunities, stimulating economic activity across tourism destinations, and supporting sustainable tourism growth," Minister of Tourism Ahmed Al-Khateeb said.
He added: "The first approved projects reflect investor confidence in the opportunities offered by Saudi Arabia's tourism sector and the role of private-sector partnerships in turning these opportunities into projects that contribute to destination development."
Projects to add rooms, create jobs
By 2030, the initiatives are expected to contribute more than SR2.4 billion annually to gross domestic product and generate over SR5.3 billion in local content through demand for domestically sourced goods, services and materials.
The approved projects are expected to add more than 3,000 hotel rooms to the Kingdom's hospitality capacity, with around 40 percent planned for coastal destinations to strengthen its sun-and-sea tourism offering.
Beyond accommodation, the developments are expected to create opportunities in food and beverage, retail, entertainment and other visitor services, supporting local businesses and economic activity while enhancing the overall visitor experience.
The first project is scheduled to open by the end of 2026, with further openings planned through 2029. The additional capacity will support Saudi Arabia's preparations for Expo 2030, the FIFA World Cup 2034 and other major international conferences and exhibitions.
Government seeks to attract private investment
Minister of Investment Fahad Al-Saif said tourism is a key priority under the National Investment Strategy, citing its investment potential and role in diversifying the economy, increasing its contribution to GDP and advancing Saudi Vision 2030 goals.
Al-Saif said: "The Hospitality Investment Enablers Program is a model of government collaboration to develop enablers that strengthen private-sector participation, stimulate high-quality investment and develop the attractiveness of investment opportunities in promising tourism destinations."
He added: "In partnership with the Ministry of Tourism and other relevant entities, we are working to strengthen the investment environment and simplify the investor journey, helping turn opportunities into sustainable projects, maximize their economic and developmental impact, create jobs and increase local content."
Arab News
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