Saudi Arabia has approved the construction of 19 hotel projects with a total value of 6.7 billion riyals (approximately $1.8 billion). The country plans to open over 3,000 new hotel rooms and create more than 17,000 jobs by 2029.

The projects will span five tourist destinations and are part of a large-scale development of the hospitality industry under the national strategy Saudi Vision 2030.

The first facility is scheduled to begin operations by the end of 2026.

19 new hotels: where the $1.8 billion will be invested

The new hotel complexes are the first group of projects approved under the Hospitality Investment Enablers (HIE).

The launch of the projects was jointly announced by the Saudi Ministry of Tourism and the Ministry of Investment at an event in Riyadh.

The program aims to attract private capital into the hospitality industry and develop the country's tourism infrastructure.

Approximately 40% of the new hotel rooms will be located in coastal tourist destinations. This will expand beach vacation options and increase the supply of coastal accommodations.

The remaining projects will be implemented in other tourist locations participating in the program.

Over 17,000 jobs and $640 million annually for the economy

Authorities estimate that the implementation of the 19 projects will provide more than 17,000 jobs.

It is expected that by 2030, their direct annual contribution to Saudi Arabia's gross domestic product will exceed 2.4 billion riyals (approximately $640 million).

Additionally, the projects are expected to generate more than 5.3 billion riyals (approximately $1.41 billion) contributing to the local economy by sourcing goods, materials, and services from Saudi suppliers.

The development of the hospitality sector will also create opportunities for food and beverage businesses, retail, entertainment, and other companies serving tourists.

How Saudi Arabia is attracting investors to the hospitality industry

The Hospitality Investment Enablers program provides support measures for approved hotel projects, including the reduction of certain operating costs.

Its goal is to improve the economic environment for private investment and accelerate the development of hotel infrastructure in selected tourist destinations.

Saudi Minister of Tourism Ahmed Al-Khateeb noted that the program is designed to meet the growing demand for tourism services and expand opportunities for private investors.

According to him, hotel construction should not only increase the number of rooms but also stimulate economic activity in tourist regions.

Minister of Investment Fahad Al-Saif emphasized that tourism remains one of the priority areas of the country's National Investment Strategy.

The development of the industry is viewed as part of the economic diversification under Saudi Vision 2030.

First openings in 2026, program completion by 2029

The implementation of approved projects is planned over several years.

The first hotel property is scheduled to open by the end of 2026, with the remainder to be commissioned in phases through 2029.

The expansion of the hotel stock is linked, among other things, to Saudi Arabia's preparations for major international events.

In 2030, Riyadh will host the World Expo, and in 2034, the country will host the FIFA World Cup.

Both events will require developed tourism infrastructure and additional accommodation options for international guests.

Tourism is becoming a key pillar of economic development

The approval of 19 hotel projects reflects the continued expansion of Saudi Arabia's tourism sector.

An investment of $1.8 billion, over 3,000 hotel rooms, and more than 17,000 jobs — these are the key figures for the first phase of the Hospitality Investment Enablers program.

Government support is focused not only on hotel construction but also on attracting private business, developing local suppliers, and creating additional economic opportunities in tourist regions.

The launch of new hotels by 2029 will be part of the country's preparations for the international events of the coming decade.