The Middle East’s short-term rental market is projected to reach $8.7 billion by 2030, driven by tourism growth, regulatory reform and shifting traveller preferences, according to a new white paper published by UnderTheDoormat Group.

Entitled The Short-Term Rental Opportunity in the Middle East, the report highlights how the region is emerging as one of the fastest-growing and most strategically important global markets for professionally managed short-term rentals, with Saudi Arabia, the UAE and Oman identified as key drivers of expansion.

The analysis points to structural changes across the region, including ambitious tourism strategies, large-scale infrastructure investment and clearer regulatory frameworks, which are accelerating demand for flexible, high-quality accommodation beyond traditional hotels.

At the same time, travellers are increasingly seeking larger, more residential-style stays that cater to families, extended visits and frequent business travel.

According to the white paper, Saudi Arabia represents the region’s most significant growth opportunity, supported by Vision 2030, rapid increases in inbound tourism and regulatory initiatives designed to activate vacant and underutilised properties.

The Kingdom issued more than 8,300 private hospitality licences in 2024 alone, underlining the pace of professionalisation within the sector.

The UAE continues to lead the way as the Gulf’s most established short-term rental market, with Dubai’s mature regulatory environment and Abu Dhabi’s event-driven demand providing a stable platform for sustained growth.

Meanwhile, Oman is highlighted as an emerging market offering early-mover advantage, supported by government-backed tourism initiatives and a growing appetite for licensed, professionally managed accommodation.

“The Middle East is undergoing a fundamental shift in how accommodation demand is being met,” said Merilee Karr, CEO of UnderTheDoormat Group. “Decision makers across the region are actively encouraging tourism growth, while travellers are looking for more flexible, residential-style stays that hotels can’t always provide. What we’re seeing is a clear move towards professionally operated short-term rentals as a core part of the hospitality ecosystem.”

The report also emphasises the role of technology in enabling this growth, noting that regulatory compliance, revenue optimisation and operational scalability are critical success factors for property owners and operators entering the market.

 Integrated platforms, such as UnderTheDoormat Group’s Hospiria technology, are increasingly being used to support compliance, distribution and performance across multiple jurisdictions. -TradeArabia News Service