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Home›The Journal›Saudi Arabia Tourism: 19 New Hotel Projects

The Journal · Saudi Arabia

Saudi Arabia Tourism: 19 Hotel Projects and 3,000 New Rooms Approved

Saudi Arabia tourism took another measured step forward on October 20, when the ministries of Tourism and Investment approved the first 19 projects of a new hospitality program: SAR 6.7 billion, about $1.78 billion, for more than 3,000 hotel rooms across five destinations.

At a glance

Saudi Arabia Tourism: 19 New Hotel Projects at a glance

Projects approved
19, by 19 companies
Investment
SAR 6.7 billion (about $1.78 billion)
Rooms
More than 3,000, about 40% on the coast
Destinations
Jeddah, Asir, Al-Baha, Al-Ahsa and the Eastern Province
Openings
First by the end of 2026, the last in 2029

What was approved

The Hospitality Investment Enablers Program is a joint effort of Saudi Arabia's Ministry of Tourism and Ministry of Investment, designed to make it easier for private companies to build and run hotels. Its first batch, announced at a joint event in Riyadh and reported by the Saudi Press Agency, Arab News and TradeArabia, brings together 19 projects from 19 companies, among them BSF Capital, Sedal, Rikaz and Jenan.

Together they represent SAR 6.7 billion of investment, about $1.78 billion, and more than 3,000 hotel rooms. Roughly 40 percent of those rooms are planned for coastal destinations. The program offers targeted incentives to reduce operating costs and improve the financial case for each hotel, and it also opens opportunities in dining, retail and entertainment around them.

Five destinations

Five destinations for the next wave of Saudi Arabia tourism

The projects are spread across five regions with very different characters. Jeddah, the historic Red Sea port, pairs the coral-stone houses of Al-Balad with a lively waterfront; our Jeddah guide covers its finest hotels. Asir, in the southwest, is a world of cool mountain air, terraced villages and the Soudah highlands, described in our page on Abha and the Asir mountains.

Al-Baha is known for its juniper forests and hilltop villages, and Al-Ahsa for one of the largest palm oases on earth, a UNESCO World Heritage site. The Eastern Province adds the Gulf coast, with Al Khobar and Dammam as its gateways; see our guide to Al Khobar and the Eastern Province.

Rooms, jobs and the timeline

The first hotel in the program is expected to open by the end of 2026, with the others following over the next few years and the final projects planned for 2029. Officials expect the batch to create more than 17,000 jobs, to add more than SAR 2.4 billion a year to the economy by 2030, and to generate more than SAR 5.3 billion in local content.

The coastal share is notable. About 40 percent of the new rooms are planned for coastal destinations, which in this batch points to destinations such as the Red Sea shore around Jeddah and the Gulf coast of the Eastern Province.

Tourism Minister Ahmed Al-Khateeb said the program reflects a long-standing commitment to enabling private-sector investment and that the approved projects show investor confidence in the sector. Investment Minister Fahad Al-Saif called it a model of government collaboration that strengthens private-sector participation.

Why it matters

Why it matters for travelers and investors

Saudi Arabia welcomed about 123 million domestic and international tourists in 2025, and tourism spending reached a record SAR 304 billion, according to figures cited by Arab News. The country's wider pipeline runs to more than 200,000 hotel rooms by 2030, part of the plans described in our page on Saudi Vision 2030 and the giga-projects.

For travelers, new rooms in Asir, Al-Baha and Al-Ahsa will make it easier to go beyond Riyadh, Jeddah and AlUla. For investors, the program is a clear signal of how the Kingdom wants private capital to shape its hotels; our Saudi Arabia Luxury Real Estate guide explains the rules for foreign buyers and Premium Residency. Start planning with our Saudi Arabia travel guide.

This is reported news, not investment advice. Speak to a licensed adviser before you invest.

Questions readers ask

How much is being invested in the 19 Saudi hotel projects?

SAR 6.7 billion, about $1.78 billion, across 19 projects and more than 3,000 rooms, according to the Ministry of Tourism and the Ministry of Investment.

When will the first hotel open?

The first project is expected to open by the end of 2026, with the last planned for 2029.

Which destinations are included?

Jeddah, Asir, Al-Baha, Al-Ahsa and the Eastern Province.

How many jobs will the projects create?

More than 17,000, according to the Ministry of Tourism and the Ministry of Investment.

Sources

Checked on 10/26/2026. Prices and dates are approximate and can change. See our standard.