Tourism Ministry, private sector contracted on SAR 50 bln deals in last 3 years to build hotels in Saudi Arabia: Minister

Saudi Arabia’s Tourism Minister Ahmed Al Khateeb

Saudi Arabia’s Ministry of Tourism signed investment agreements worth SAR 50 billion with the private sector over the past three years to build hotels until 2026, Tourism Minister Ahmed Al Khateeb said.

During his participation in the Real Estate Future Forum, Al Khateeb explained that the projects that Saudi Arabia is working on will provide 50% of the Kingdom's needs by 2030, while the private sector will cover the rest. He also stressed that tourism in the Kingdom is characterized by its geographical and climatic diversity throughout the year.

There are currently about 40,000 hotel rooms in Riyadh. However, it will require more than 120,000 rooms by 2030, the minister added.

He pointed out that the contribution of the tourism sector to the GDP increased from 3% in 2019 to 4% by the end of last year, with the aim to reach 10% by 2030 to add $70-$80 billion to the GDP in turn.

The minister also noted that the tourism sector in Saudi Arabia is complete in terms of infrastructure and legislation, and opportunities exist. During the past three years, the ministry focused on regulating the tourism sector, and all facilities have been put in place for the private sector to contribute to its renaissance.

The Kingdom targets to be a lucrative global investment hub for tourism through the new system that will see the light soon. Al Khateeb also revealed that foreign investors are tapping the sector, whether through the establishment of an entire project such as the development and operation of the Rixos Emerald Shores project in King Abdullah Economic City (KAEC), among others.

Meanwhile, Al Khateeb touched on rural tourism in the Kingdom, saying, "Any owners of a house or a farm in Al-Ahsa or Qassim can post their properties on the digital platform to be offered for rent or to be revamped into rural lodges.”

He underlined that the Tourism Development Fund (TDF) financed 25 projects over a period of 18 months, worth SAR 15 billion, with financing of up to 60%. The ministry worked to conclude bank consortiums to ensure a competitive cost and long repayment periods for investors.

He pointed out that domestic tourism achieved outstanding performance last year, with a total of 65 million tourists.