Saudi Arabia has approved the first batch of 19 hospitality projects expected to attract SAR6.7 billion ($1.8 billion) in investment and create more than 17,000 jobs across five high-potential tourism destinations, as the Kingdom seeks to expand its tourism infrastructure ahead of major international events.

The projects were announced by the Ministry of Tourism and the Ministry of Investment at a joint event in Riyadh, attended by Tourism Minister Ahmed Al-Khateeb and Investment Minister Fahad Al-Saif, under the Hospitality Investment Enablers (HIE) Programme, reported Saudi Press Agency (SPA).

The initiative provides targeted incentives to reduce operating costs for approved hospitality developments, improve their financial viability and encourage private-sector investment in selected destinations.

Al-Khateeb said: “The Hospitality Investment Enablers Program reflects our long-standing commitment to enabling private-sector investment and responding to the Kingdom’s growing tourism demand. By expanding hospitality capacity in high-potential destinations, we are doing more than adding rooms. We are unlocking new investment opportunities, stimulating economic activity across tourism destinations, and supporting sustainable tourism growth. The first approved projects reflect investor confidence in the opportunities offered by Saudi Arabia’s tourism sector and the role of private-sector partnerships in turning these opportunities into projects that contribute to destination development."

The projects are expected to contribute more than SAR2.4 billion annually to gross domestic product by 2030 and generate over SAR5.3 billion in local content through demand for locally sourced goods, services and materials.

Al-Saif said: “The Hospitality Investment Enablers Program is a model of government collaboration to develop enablers that strengthen private-sector participation, stimulate high-quality investment and develop the attractiveness of investment opportunities in promising tourism destinations. In partnership with the Ministry of Tourism and other relevant entities, we are working to strengthen the investment environment and simplify the investor journey, helping turn opportunities into sustainable projects, maximize their economic and developmental impact, create jobs and increase local content."

The developments will add more than 3,000 hotel rooms to Saudi Arabia’s accommodation capacity, with approximately 40% planned for coastal destinations to strengthen the Kingdom’s sun-and-sea tourism offering.

Beyond accommodation, the projects are expected to generate business opportunities across food and beverage, retail, entertainment and other visitor services, supporting local enterprises and economic activity in participating destinations.

The first project is scheduled to open by the end of 2026, with further developments becoming operational over the following years and the final projects expected to open in 2029.

The expansion forms part of Saudi Arabia’s broader tourism ambitions under Vision 2030, increasing hospitality capacity ahead of Expo 2030, the FIFA World Cup 2034 and other major international conferences and exhibitions.