The hospitality industry in the Middle East and North Africa is projected to grow significantly, expanding from $310 billion in 2025 to over $487 billion by 2032. This surge is anticipated to be fueled by exceptional tourism growth and a historic development pipeline, according to recent findings shared ahead of the Future Hospitality Summit (FHS) World 2025, scheduled to take place in Dubai from October 27–29.
The World Travel and Tourism Council (WTTC) estimates that the travel and tourism sector will bring in $367 billion to the Middle Eastern economy by 2025, creating 7.7 million jobs in the process.
Expenditures by international visitors are predicted to reach $194 billion, which is nearly 25% higher compared to pre-pandemic figures from 2019, while domestic tourism spending is forecasted to reach $113 billion.
According to industry reports, the hotel construction pipeline in the region has reached an unprecedented level, with 650 projects in progress, amounting to 161,574 rooms as of the second quarter of 2025. Out of these, 337 projects, equivalent to 86,500 rooms, are currently under construction, and another 147 projects are set to commence by mid-2026.
Growth of the Saudi Arabian hospitality sector
Saudi Arabia is leading the charge with 342 projects and over 92,000 rooms planned, followed by Egypt with 127 projects (28,000 rooms) and the UAE with 100 projects (25,470 rooms). Rounding out the top five are Oman and Qatar, with 27 projects (4,709 keys) and 16 projects (3,500 rooms) respectively.
“Saudi Arabia aims for 150 million tourist arrivals annually by 2030, while Egypt is targeting 30 million international visitors by 2028,” stated Amr El Nady, head of Hotels & Hospitality MEA and Managing Director at Global Hotel Desk, Jones Lang Lasalle (JLL). “Both countries are focusing on enhancing tourism’s contribution to their GDP — Saudi Arabia aiming for 10% and Egypt for 15% — leading to a wave of hospitality investments through initiatives such as NEOM, The Red Sea Project, and developments in Egypt’s New Administrative Capital and Ras Al Hekma.”
El Nady highlighted that the increase in hotel development is drawing a variety of international operators and boutique brands, with concepts ranging from luxurious desert resorts to culturally inspired stays. “This diversification supports national economic transformation and goals for sustainable tourism,” he remarked.
JLL reports that investment liquidity in the hotel sector remains robust, supported by strong occupancy and average daily rate (ADR) metrics. “This stability has increased interest from both regional and international investors, including family offices and institutional investors,” El Nady explained. “Dubai is projected to surpass last year’s forecast of $1.2 billion in hotel transactions, indicating sustained investor trust.”
UAE statistics indicate steady growth
In the United Arab Emirates, Dubai’s hospitality sector continues to thrive, with approximately 10,000 new rooms anticipated by 2027.
“Occupancy levels hit 81% during the first half of 2025, 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 standards for safety, inclusivity, and connectivity, which keeps it at the leading edge of global business and leisure travel.”
In neighboring Oman, the country is quickly establishing itself as a new investment hotspot, with tourism expected to contribute 5% to GDP by 2030 and 10% by 2040, thereby becoming the second-largest non-oil sector, overtaking transport and logistics.
Oman plans to boost hotel capacity by 25% by 2030, adding 9,600 rooms over the next five years, including 2,600 by the close of 2025.
In the first half of this year, over 1.1 million guests stayed in 3–5-star hotels, leading to an 18% increase in revenue to $367 million.
The ongoing boom in the hospitality sector is further bolstered by governmental reforms and major events that continue to draw foreign investment.
Saudi Arabia’s Expo 2030 and the FIFA World Cup 2034 are expected to further accelerate hotel demand, while new laws permitting foreign ownership of real estate in designated areas starting in January 2026 are viewed as a significant catalyst for long-term capital investments.
The investment landscape and tourism future will be key topics at FHS World 2025, featuring over 30 sessions dedicated to topics such as smart capital, sustainability, mixed-use investment, and international partnerships.