The hospitality sector in the Middle East and North Africa is projected to leap from $310 billion in 2025 to over $487 billion by 2032, driven by unprecedented tourism growth and an extensive development pipeline, as revealed by new data released ahead of the Future Hospitality Summit (FHS) World 2025, scheduled to take place in Dubai from October 27-29.
According to the World Travel and Tourism Council (WTTC), the travel and tourism industry is expected to contribute $367 billion to the economy of the Middle East in 2025, creating 7.7 million jobs.
Spending by international visitors is anticipated to reach $194 billion, which is nearly 25% higher than the levels seen in 2019 before the pandemic, while domestic tourism spending is projected to be around $113 billion.
Current industry statistics indicate that the region’s hotel construction pipeline has hit a record high with 650 projects planned, equating to a total of 161,574 rooms as of the second quarter of 2025. Out of these, 337 projects (86,500 rooms) are already in the construction phase, and an additional 147 projects are expected to commence by mid-2026.
Strong Growth in Saudi Arabia’s Hospitality Sector
Saudi Arabia stands as the leading player in the region, with 342 projects and over 92,000 rooms, followed by Egypt, which has 127 projects (28,000 rooms), and the UAE with 100 projects (25,470 rooms). Oman and Qatar complete the top five with 27 projects (4,709 rooms) and 16 projects (3,500 rooms) respectively.
“Saudi Arabia aims to attract 150 million international tourists annually by 2030, while Egypt is targeting 30 million by 2028,” stated Amr El Nady, head of Hotels & Hospitality MEA and MD at Global Hotel Desk, Jones Lang Lasalle (JLL). “Both countries are working to enhance tourism’s share of GDP, with Saudi Arabia targeting 10% and Egypt, 15%. This ambition is driving significant investment in projects such as NEOM, The Red Sea Project, AlUla, and Egypt’s New Administrative Capital as well as Ras Al Hekma.”
El Nady remarked that the rise in hotel development is attracting a variety of international operators and specialized boutique brands, with new offerings ranging from ultra-luxury desert accommodations to heritage-focused stays. “This diversification contributes to national economic reform and sustainable tourism objectives,” he added.
As reported by JLL, the liquidity in hotel investments remains robust, supported by strong performance in occupancy and average daily rate (ADR) metrics. “This strength has increased interest from both regional and global investors, including family offices and institutional funds,” noted El Nady. “Dubai alone is expected to surpass the previous forecast of $1.2 billion in hotel transactions this year, reflecting ongoing investor confidence.”
Sustained Growth in UAE Hospitality
In the UAE, Dubai’s hospitality sector continues to excel, with approximately 10,000 new rooms anticipated by 2027.
“In the first half of 2025, occupancy rates reached 81%, marking a 2.5% increase year-on-year, while ADR rose by 4.7% to $159,” reported Vidhi Shah, director and head of Commercial Valuation at Cavendish Maxwell. “Dubai consistently sets high standards for safety, inclusivity, and connectivity, ensuring its leadership in both leisure and business travel on a global scale.”
Additionally, Oman is quickly establishing itself as a new hotspot for investment, with projections showing tourism could account for 5% of GDP by 2030 and 10% by 2040, surpassing transport and logistics as the second-largest non-oil sector in the country.
The Omani government aims to boost hotel capacity by 25% by 2030, adding 9,600 rooms over five years, with 2,600 of those slated for completion by the end of 2025.
In the first half of this year, over 1.1 million visitors stayed in 3–5-star hotels, resulting in an 18% increase in revenue to $367 million.
The hospitality surge in the region is further bolstered by government initiatives and large-scale events that are drawing foreign investment.
Anticipated events like Saudi Arabia’s Expo 2030 and the FIFA World Cup 2034 are expected to further enhance hotel demand, coupled with new property regulations permitting foreigners to purchase real estate in designated areas starting January 2026, a move anticipated to significantly boost long-term capital investment.
The investment environment and tourism prospects will be key topics at FHS World 2025, featuring over 30 sessions addressing issues such as smart capital, sustainability, mixed-use investment, and cross-border collaborations.