Robust tourism growth is set to expand the hospitality market in the Middle East and North Africa from $310 billion in 2025 to more than $487bn by 2032, a new report showed.
Released by the Future Hospitality Summit ahead of its gathering in Dubai from Monday to Wednesday, the report cites data from the World Travel and Tourism Council and notes that the travel and tourism sector is expected to contribute $367bn to the Middle East economy this year while supporting 7.7 million jobs.
Quoting industry experts, it adds that unprecedented expansion in hospitality, tourism, and infrastructure is reinforcing the region’s position as a global magnet for investment.
Developing a robust tourism sector is crucial for Middle Eastern countries as they pursue economic diversification and reduce reliance on crude revenues. Saudi Arabia aims to attract 150m tourists annually by 2030, while Egypt targets 30m international visitors by 2028.
Amr El Nady, head of hotels and hospitality Middle East and Africa and managing director, global hotel desk at JLL, said: “Both nations are seeking to significantly increase tourism’s contribution to their gross domestic product, with Saudi Arabia targeting 10pc and Egypt 15pc.”
He added: “This strategic focus is driving substantial hospitality investment, with mega-projects like NEOM, the Red Sea Project, and AlUla in Saudi Arabia, alongside Egypt’s New Administrative Capital, Ras Al Hekma, South Med and Red Sea developments.”
According to the report, international visitor spending in the Middle East is expected to reach nearly $194bn this year, up nearly a quarter from 2019 pre-pandemic levels, while domestic spending is forecast to hit $113bn.
As of the second quarter of 2025, the hotel construction pipeline in the Middle East reached an all-time high of 650 projects, totalling 161,574 rooms.
At the end of June, 337 projects with almost 86,500 rooms were under construction, and 147 projects are due to start by the second quarter of next year.
Saudi Arabia tops the Middle East hotel construction chart, with more than 92,000 rooms across 342 projects, followed by Egypt with 127 projects and over 28,000 rooms.
The UAE has 100 projects with 25,470 rooms, Oman 27 projects with 4,709 keys, and Qatar 16 projects with nearly 3,500 rooms.
Upcoming global events such as Expo 2030 and the FIFA World Cup 2034 in Saudi Arabia are already boosting strong demand for real estate, including hospitality projects.
From January 2026, foreigners will also be able to purchase real estate assets in designated zones – a landmark development expected to further deepen investor appetite in the kingdom.
JLL added that liquidity in the hotel investment landscape in the Middle East remains remarkably robust, underpinned by resilient hotel trading performance and increasing tourist arrivals.
El Nady noted that the UAE’s hospitality market continues to attract strong interest from regional and international investors seeking high-yielding, income-generating hotel assets and mixed-use developments.
“Last year, JLL forecast $1.2bn in Dubai hotel transactions, and current market activity indicates we are on track to exceed this milestone, further demonstrating sustained investor confidence,” he said.
Citing data from Cavendish Maxwell, a real estate advisory group, the report added that Dubai’s hospitality market continues to outperform, with around 10,000 new rooms expected by 2027.
Vidhi Shah, director, head of commercial valuation at Cavendish Maxwell, said that the occupancy level in hotels in Dubai rose to 81pc in the first half of this year, representing a 2.5pc rise compared to the same period in the previous year, while average daily rents reached $159, up 4.7pc.
Oman is also increasingly becoming a hot spot for hospitality investment, with tourism expected to contribute 5pc to GDP by 2030 and 10pc by 2040.
Data from Cavendish Maxwell revealed that Oman is set to boost hotel room inventory by 25pc by 2030, with 9,600 new keys on the way in the next five years, and 2,600 by the end of 2025.
The report further said that hotel revenues in Oman rose more than 18pc year on year to $367m.
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