Transforming the Kingdom into a global tourism hub with major projects and rapid sector growth.
The leisure and hospitality sector in Saudi Arabia has seen unprecedented growth over recent years, marking a crucial pillar of the Kingdom’s Vision 2030 initiative. As the nation diversifies its economy away from oil dependency, tourism, leisure, and hospitality are emerging as focal points of development. The government’s ambitious plans to make Saudi Arabia a leading global tourism destination have been driving significant investments into the construction of world-class hotels, resorts, entertainment venues, and mixed-use developments. With major projects underway and a positive outlook for the coming decade, the sector’s potential is enormous.
His Excellency Ahmed Al Khateeb, Saudi Arabia’s Minister of Tourism, remarked, “The growth of the leisure and hospitality sector is not just about building hotels and resorts. It’s about creating unique, unforgettable experiences that showcase Saudi Arabia’s rich culture, stunning landscapes, and welcoming spirit.”
Projected CAGR of 8.6% over the next decade
A Market on the Rise
Saudi Arabia’s leisure and hospitality market is undergoing rapid transformation, with billions of dollars earmarked for development projects that aim to attract visitors from around the world. The sector is projected to grow at a compound annual growth rate (CAGR) of 8.6% over the next decade, making it one of the fastest-growing industries in the region. From the Red Sea coast to the mountainous regions of Asir, the construction of resorts, hotels, theme parks, and other leisure facilities is surging.
According to recent reports, the leisure and hospitality construction sector was valued at approximately $37 billion in 2023, and the forecast suggests it will exceed $70 billion by 2034. The key to this growth is the strategic development of mega-projects that promise to make Saudi Arabia a must-visit destination for both regional and international tourists.
Neom integrates smart technology with luxury hospitality
Major Projects Driving the Sector
Several high-profile projects are spearheading the transformation of Saudi Arabia’s hospitality and leisure landscape. These projects are not just about building hotels and resorts but creating comprehensive experiences that blend luxury, culture, and sustainability. Here are some of the most notable developments:
The Red Sea destination
One of the most ambitious destinations in the sector, The Red Sea spans over 28,000 square kilometers on the Kingdom’s western coastline. It aims to establish a sustainable, luxury tourism destination that features over 50 hotels, marinas, golf courses, and entertainment centers when fully complete. Its first three world-class resorts – Six Senses Southern Dunes, The Red Sea, The St Regis Red Sea Resort and Nujuma, a Ritz-Carlton Reserve – are already welcoming guests. Red Sea International Airport, which is situated within three hours’ flying time of 250 million people and eight hours’ flying time for 8% of the world’s population, has been receiving a regular schedule of domestic flights since September 2023. International flights began in April 2024, with a twice-weekly route between The Red Sea and Dubai International.
The destination emphasizes eco-friendly development, with the entire destination planned to be powered by sunlight day and night – the open hotels are already powered by renewables. John Pagano, Group CEO of Red Sea Global (RSG), the developer behind the destination, said: “We were determined to redefine industry standards from the outset. To ensure we deliver on this ambition, our development and delivery teams work hand in hand with our sustainability team at every stage, scrutinizing design plans and collaborating during the build process, resulting in high quality, low-impact properties.”
Qiddiya
Positioned as the entertainment capital of Saudi Arabia, Qiddiya, located near Riyadh, is set to feature theme parks, water parks, motorsport venues, and golf courses. Designed to attract over 17 million visitors annually by 2030, Qiddiya will redefine leisure in the Kingdom. Key contractors involved in the project include Saudi Binladin Group and Bouygues Construction, with a focus on creating integrated leisure spaces that cater to both families and adventure seekers.
AMAALA
Located on the northwestern coast of Saudi Arabia, AMAALA is a luxury resort that aims to offer wellness, art, and culture. Also developed by RSG, it will feature high-end hotels, private villas, art galleries, and spas. The destination is set to attract high-net-worth individuals from around the world, emphasizing sustainability and low-impact development.
Neom and The Line
Perhaps the most talked-about project, Neom, and its sub-project The Line, represent the future of urban living. Neom is a $500 billion mega-city that combines smart technology with leisure and hospitality. The Line, a 170-kilometer linear city within Neom, will be home to luxury hotels, entertainment venues, and wellness centers. Companies like Bechtel, Aecom, and Saudi Oger are key players in the construction of this futuristic city.
Key Contractors in the Sector
Saudi Arabia’s leisure and hospitality sector has attracted some of the biggest names in construction and project management, both locally and internationally. Here are a few companies leading the charge.
Saudi Binladin Group
A major player in large-scale construction projects, Binladin Group has been integral in the development of Qiddiya and other key leisure projects.
Saudi Aramco
Beyond its oil expertise, Aramco has diversified into construction, providing infrastructure and project management for several mega-projects.
Qiddiya set to become Saudi Arabia’s entertainment capital
Bechtel
The American construction giant is deeply involved in the Neom project, bringing expertise in engineering, construction, and project management.
Bouygues Construction
The French multinational is actively participating in the Qiddiya development, helping to build state-of-the-art entertainment facilities.
BEC ARABIA
BEC Arabia has emerged as one of the construction industry’s leading players. BEC has transformed into a dynamic regional organization, offering turnkey projects and working with NEOM as well as Red Sea Global.
Future Growth and Opportunities
The Saudi government’s focus on diversifying the economy has created vast opportunities for contractors, architects, engineers, and developers. The leisure and hospitality sector is expected to generate over 1 million jobs by 2034, ranging from construction to service and management roles. Additionally, the strategic location of Saudi Arabia, connecting Europe, Asia, and Africa, makes it an attractive destination for international tourists.
The ongoing development also aligns with global trends, including sustainable and eco-friendly construction. Destinations like AMAALA and The Red Sea emphasize the use of renewable energy, waste management, and the conservation of local ecosystems, setting a benchmark for future developments in the sector.
Table of Statistics: Saudi Leisure and Hospitality Sector 2034
| Statistic | Detail |
| Total Value of Projects (2023) | $37 billion |
| Projected Market Value (2034) | $70 billion |
| Number of Keys in Red Sea Project (2025) | 3,000 |
| Expected Visitors to Qiddiya (Annually) | 17 million |
| Jobs Created by 2034 | 1 million+ |
| Key Contractors Involved | Saudi Binladin Group, Bechtel, Bouygues Construction, Aramco |
| Expected Annual Visitors to Saudi Arabia | 100 million |
| Focus Areas for Development | Riyadh, Jeddah, Red Sea Coast, Asir, Neom |
Conclusion
Saudi Arabia’s leisure and hospitality sector is on a path of rapid growth, driven by visionary projects and strategic investments. With billions being poured into construction, tourism, and entertainment, the Kingdom is set to become a top destination for travelers from around the world. The projects mentioned above are just the beginning of a larger transformation that will redefine how the world perceives Saudi Arabia. As the nation opens its doors to global tourists, the leisure and hospitality construction sector stands at the forefront of this exciting journey, building the future one brick at a time.
Here’s a table showing the current number of keys in the hospitality sector across selected cities in Saudi Arabia, along with the expected growth:
| City/Region | Current Number of Keys | Expected Growth (Keys by 2034) |
| AlUla | 2,500 | 6,000 |
| Dammam | 8,000 | 12,000 |
| Diriyah | 3,000 | 8,000 |
| Jubail | 4,000 | 6,500 |
| Mecca | 35,000 | 50,000 |
| Medina | 15,000 | 25,000 |
| Khobar | 6,500 | 9,000 |
| Neom | 2,000 (planned) | 10,000 (planned) |
| Red Sea | 5,000 | 20,000 |
| Riyadh | 25,000 | 40,000 |