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The Middle East and North Africa’s hospitality market is set to surge from $310bn in 2025 to over $487bn by 2032, driven by record tourism growth and a development pipeline unmatched in the region’s history, according to new data released ahead of the Future Hospitality Summit (FHS) World 2025, taking place in Dubai from October 27–29.
The World Travel and Tourism Council (WTTC) projects that travel and tourism will contribute $367bn to the Middle East’s economy in 2025, supporting 7.7 million jobs.
International visitor spending is forecast to hit $194bn, nearly a quarter higher than 2019 pre-pandemic levels, while domestic tourism spending is expected to reach $113bn.
Industry data shows the region’s hotel construction pipeline reached an all-time high of 650 projects, totalling 161,574 rooms as of the second quarter of 2025. Of these, 337 projects (86,500 rooms) are already under construction, with another 147 due to break ground by mid-2026.
Saudi Arabia hospitality sector shows robust growth
Saudi Arabia remains the dominant force, accounting for 342 projects and over 92,000 rooms, followed by Egypt with 127 projects (28,000 rooms) and the UAE with 100 projects (25,470 rooms). Oman and Qatar round out the top five, with 27 projects (4,709 keys) and 16 projects (3,500 rooms) respectively.
“Saudi Arabia is targeting 150 million tourist arrivals annually by 2030, while Egypt aims for 30 million international visitors by 2028,” said Amr El Nady, head of Hotels & Hospitality MEA and MD, Global Hotel Desk at Jones Lang Lasalle (JLL). “Both nations are focused on expanding tourism’s contribution to GDP — Saudi Arabia targetting 10 per cent and Egypt 15 per cent, which is driving a wave of hospitality investment through projects like NEOM, The Red Sea Project, AlUla, and Egypt’s New Administrative Capital and Ras Al Hekma.”
El Nady noted that the surge in hotel development is attracting a mix of international operators and niche boutique brands, with new concepts ranging from ultra-luxury desert retreats to heritage-driven stays. “This diversification supports national economic transformation and sustainable tourism goals,” he said.
According to JLL, liquidity in hotel investment remains strong, buoyed by resilient performance across occupancy and average daily rate (ADR) metrics. “This strength has boosted appetite from both regional and global investors, including family offices and institutional funds,” El Nady said. “Dubai alone is on track to exceed last year’s forecast of $1.2bn in hotel transactions, showing sustained investor confidence.”
UAE stats reveal consistent growth
In the UAE, Dubai’s hospitality market continues to outperform, with around 10,000 new rooms expected by 2027.
“Occupancy reached 81 per cent in the first half of 2025, up 2.5 per cent year-on-year, while ADR climbed 4.7 per cent to $159,” said Vidhi Shah, director and head of Commercial Valuation at Cavendish Maxwell. “Dubai continues to set benchmarks for safety, inclusivity and connectivity, keeping it at the forefront of global leisure and business travel.”
Elsewhere in the Gulf, Oman is rapidly emerging as a new investment hub, with tourism projected to contribute 5 per cent to GDP by 2030 and 10 per cent by 2040, overtaking transport and logistics to become the country’s second-largest non-oil sector.
Oman plans to increase hotel capacity by 25 per cent by 2030, adding 9,600 rooms in five years, including 2,600 by the end of 2025.
In the first half of this year, over 1.1 million guests checked into 3–5-star hotels, driving an 18 per cent revenue rise to $367mn.
The region’s hospitality boom is further reinforced by government reforms and mega-events that continue to attract foreign investment.
Saudi Arabia’s Expo 2030 and the FIFA World Cup 2034 are expected to further boost demand for hotels, while new property laws allowing foreigners to buy real estate in designated areas from January 2026 are seen as a major driver for long-term capital inflows.
The investment landscape and tourism outlook will be under the spotlight at FHS World 2025, where more than 30 sessions will explore topics including smart capital, sustainability, mixed-use investment, and cross-border partnerships.
Sources: Fortune Business Insights, Lodging Econometrics, WTTC, JLL, Cavendish Maxwell.
