MENA hospitality market set to surpass $487bn by 2032: Report
Robust tourism growth and strategic investments driving industry expansion in Middle East and North Africa.
Riyadh: The hospitality market in the Middle East and North Africa (MENA) is projected to expand from $310 billion in 2025 to more than $487 billion by 2032, driven by robust tourism growth, according to a new report.
The data, released ahead of the Future Hospitality Summit in Dubai scheduled for Oct. 27-29, highlights that the travel and tourism sector will contribute $367 billion to the Middle East economy this year, supporting 7.7 million jobs.
Industry experts note that expanded investments in hospitality, tourism, and infrastructure are reinforcing the region's global appeal for investment.
Developing a robust tourism sector is crucial as several Middle Eastern countries pursue economic diversification.
Saudi Arabia aims to attract 150 million tourists by 2030, while Egypt targets 30 million international visitors by 2028.
Amr El-Nady, head of hotels and hospitality for the Middle East and Africa at JLL, stated that both nations are focusing on significantly increasing tourism's contribution to their GDP, with Saudi Arabia targeting 10 percent and Egypt aiming for 15 percent.
This strategic focus is driving substantial investment in mega-projects such as NEOM, the Red Sea Project, AlUla in Saudi Arabia, and Egypt's New Administrative Capital, Ras Al Hekma, South Med, and Red Sea developments.
International visitor spending in the Middle East is expected to reach nearly $194 billion this year, up 24% from pre-pandemic levels, while domestic spending is forecast at $113 billion.
Saudi Arabia leads hotel construction pipeline growth with more than 92,000 rooms across 342 projects.
The UAE maintains momentum, attracting strong interest from regional and international investors.
Dubai's hospitality market continues to outperform, with approximately 10,000 new rooms expected by 2027.
Oman is also becoming a hot spot for investment, with tourism projected to contribute 5% to GDP by 2032 and 10% by 2040.
The strong performance in the industry has led to growth in employment opportunities and hotel revenues across the region.
The data, released ahead of the Future Hospitality Summit in Dubai scheduled for Oct. 27-29, highlights that the travel and tourism sector will contribute $367 billion to the Middle East economy this year, supporting 7.7 million jobs.
Industry experts note that expanded investments in hospitality, tourism, and infrastructure are reinforcing the region's global appeal for investment.
Developing a robust tourism sector is crucial as several Middle Eastern countries pursue economic diversification.
Saudi Arabia aims to attract 150 million tourists by 2030, while Egypt targets 30 million international visitors by 2028.
Amr El-Nady, head of hotels and hospitality for the Middle East and Africa at JLL, stated that both nations are focusing on significantly increasing tourism's contribution to their GDP, with Saudi Arabia targeting 10 percent and Egypt aiming for 15 percent.
This strategic focus is driving substantial investment in mega-projects such as NEOM, the Red Sea Project, AlUla in Saudi Arabia, and Egypt's New Administrative Capital, Ras Al Hekma, South Med, and Red Sea developments.
International visitor spending in the Middle East is expected to reach nearly $194 billion this year, up 24% from pre-pandemic levels, while domestic spending is forecast at $113 billion.
Saudi Arabia leads hotel construction pipeline growth with more than 92,000 rooms across 342 projects.
The UAE maintains momentum, attracting strong interest from regional and international investors.
Dubai's hospitality market continues to outperform, with approximately 10,000 new rooms expected by 2027.
Oman is also becoming a hot spot for investment, with tourism projected to contribute 5% to GDP by 2032 and 10% by 2040.
The strong performance in the industry has led to growth in employment opportunities and hotel revenues across the region.
