Dubai – The value of MENA’s hospitality market is set to grow from US$310 billion in 2025 to more than US$487 billion by 2032, according to data released ahead of the Future Hospitality Summit – FHS World, Madinat Jumeirah Dubai, 27-29 October.
The travel and tourism sector is projected to contribute US$367 billion to the Middle East economy and support 7.7 million jobs this year, says the World Travel and Tourism Council. International visitor spending is expected to reach nearly US$194 billion, up nearly a quarter from 2019, pre-pandemic levels, with domestic spending forecast to hit US$113 billion.
As of Q2 2025, the Middle East’s hotel construction pipeline reached an all-time high of 650 projects with 161,574 rooms. At the end of June, 337 projects, with almost 86,500 rooms, were under construction, with 147 projects due to start by Q2 2026.
Saudi Arabia tops the Middle Eastern hotel construction chart, with more than 92,000 rooms across 342 projects. Next is Egypt with 127 projects and a record-high room count of over 28,000, followed by the UAE with 100 projects (25,470 rooms); Oman with 27 projects (4,709 keys) and Qatar with 16 projects (nearly 3,500 rooms).
The unprecedented hospitality, tourism and infrastructure expansion reinforces the region’s position as a global magnet for investment, say experts.
Saudi Arabia is targeting 150 million tourist arrivals annually by 2030, while Egypt aims for 30 million international visitors by 2028. Both nations are seeking to significantly increase tourism’s contribution to their GDP, with KSA targeting 10% and Egypt 15%. This strategic focus is driving substantial hospitality investment, with mega-projects like NEOM, The Red Sea Project, and AlUla in KSA, alongside Egypt’s New Administrative Capital, Ras Al Hekma, South Med and Red Sea developments.
The surge in development creates opportunities for both major international hotel operators and boutique brands to diversify their portfolios by introducing new concepts ranging from ultra-luxury desert resorts to culturally immersive heritage properties. The diversification strategy allows operators to cater to evolving traveller preferences while supporting the countries’ objectives of transforming their economies through sustainable tourism growth and positioning themselves as premier global destinations. Amr El Nady, Head of Hotels & Hospitality MEA and Managing Director, Global Hotel Desk at Jones Lang Lasalle
JLL added that liquidity in the hotel investment landscape remains remarkably robust, underpinned by resilient hotel trading performance and increasing tourist arrivals. Performance data shows year on year growth in terms occupancy and ADR metrics, reflecting the sector’s operational strength and market confidence.
Amr El Nady added: This strong performance has significantly enhanced appetite from regional and international investors – from high-net-worth individuals to institutional players – all seeking high-yielding, income-generating hotel assets and mixed-use developments, particularly across the UAE market. The region’s investment appeal continues to attract diverse capital sources drawn to its strategic positioning and growth potential. Last year, JLL forecasted US$1.2 billion in Dubai hotel transactions, and current market activity indicates we are on track to exceed this milestone, further demonstrating sustained investor confidence.
In the UAE, Dubai’s hospitality sector – which has around 10,000 new rooms on the way between now and 2027 – continues to deliver an outstanding performance, according to the hospitality division at leading real estate advisory group and property consultant, Cavendish Maxwell.
Occupancy levels rose to 81% in H1 2025, an increase of 2.5% year-on-year. Meanwhile ADR across Dubai’s hotels and resorts reached US$159, up 4.7%. With its hospitality sector continuing to lead the way in setting new benchmarks in safety, inclusivity and connectivity, Dubai remains a premium, global destination for leisure and business travellers, in turn opening up a plethora of new investment opportunities. Vidhi Shah, Director, Head of Commercial Valuation at Cavendish Maxwell
Oman is also increasingly becoming a hot spot for hospitality investment, with tourism expected to contribute 5% to GDP by 2030 and 10% by 2040 – and overtake transport and logistics to become the country’s second most important industry after hydrocarbons.
Oman is set to boost hotel room inventory by 25% by 2030, with 9,600 new keys on the way in the next five years, and 2,600 by the end of 2025, recent insight from Cavendish Maxwell shows. In H1 this year, more than 1.1 million guests checked in to 3-5 hotels, where revenues rose more than 18% to US$367 million. The strong performance led to almost 5% growth in hospitality employment, with 10,800 people now working in the industry.
The Middle East’s continued growth in tourism and hospitality is being further boosted by various government campaigns and initiatives across the region to encourage investment, international visits and business set up.
In KSA, upcoming global events like Expo 2030 and the FIFA World Cup 2034 are boosting already strong demand for real estate, including project in the hospitality sector. In addition, from January 2026, foreigners will be able to purchase real estate assets in designated zones – a landmark development set to further deepen investor appetite.
Investment and real estate is a key track at FHS World, with more than 30 presentations, panel debates, workshops and one-to-one conversations covering everything from smart capital to sustainability and investment, cross border strategies to building global partnerships, investing in mixed-use projects and much more. Visit futurehospitality.com/world/agenda for subjects and speakers across the three-day programme.
Sources:
Fortune Business Insights
Lodging Econometrics
About The Bench
The Bench has built a legacy as a global curator of opportunity, designing transformative forums and summits that empower the hospitality and travel industries to connect, innovate, and thrive. With over two decades of expertise, The Bench creates platforms that go beyond transactions to inspire collaboration and drive meaningful change.
Each event brings together government leaders, tourism ministries, global travel associations, leading hospitality brands, hotel owners and investors, airlines, destination developers, and more. From flagship gatherings like FHS World (formerly AHIC) and FHS Saudi Arabia, to FHS Africa (formerly AHIF) and AviaDev, The Bench creates events where ideas spark, relationships deepen, and investments take flight.
The Bench thrives on fostering dynamic and forward-looking dialogues, uniting industry pioneers to address challenges, seize opportunities, and co-create the future. Each event is crafted to deliver more than just connections – it’s about transforming ideas into action and building a better tomorrow.
Discover more at thebench.com
About FHS World
Dates: 27-29 October 2025
Location: Madinat Jumeirah, Dubai, UAE
Sponsors:
Jumeirah as Host Sponsor; Ministry of Housing, Utilities and Urban Communities (MHUC) – Egypt, Neom, Rua Al Madinah, Taiba Investments, Territorial Development Agency (Albania), Tourism Promotions Board Philippines and UAE Ministry of Economy & Tourism as Strategic Partners; PWC as Knowledge Partner; Accor, Arada Hospitality LLC, Barriere, ClubMed, Colliers, IHG Hotels & Resorts, Italia Hospitality, Jabal Omar Development Company, Marriott International, Modon Hospitality, Radisson Hotel Group, Red Sea Global, Rotana and The Ascott Limited as Headline Sponsors; Abu Dhabi Hospitality Academy – Les Roches, Action Hotels, Aleph Hospitality, Aristara.ai, Arthur D Little, Blastness, Bushtec Creations, BWH Hotels, CBRE, Compass Project Consulting, Credibl ESG, Danube Hospitality Solutions, EHL Hospitality, ELKO EP, Enterprise Greece, Forsite Creative, H World International, HDL Automation, IHCL, JLL, JT & Partners, Knight Frank, Legacy Hotels Holding (Louvre), Millat Group, Minor Hotels, Parsons, QUO, Rikas Hospitality, Sharjah Investment and Development Authority (Shurooq), STR – a CoStar Group Company, Technogym, The First Group Hospitality, TUI Hotels & Resorts, United Hospitality Management, UNS and Wyndham Hotels & Resorts as Sponsors; ARK People Solutions, Cavendish Maxwell, Centara Hotels & Resorts, Inntelo AI, Invest Cyprus, Rove Hotels and Shaza Hotels, Start Reverse and iReserved as Exhibitors; and Adyen, dailypoint, ExploreTECH, Fairmas, Flyr, Portal, RMS Cloud and ROOMNET in the ExploreTECH Tech Pavilion.
Anne Bleeker
In2 Consulting
+971 56 603 0886
The Bench
Please visit:
Our Sponsor