Saudi Tourism Set for Major Growth as $400 Billion Is Invested
Saudi Arabia is planning a major expansion of its tourism sector as part of its efforts to reduce reliance on oil and build a stronger, more diverse economy. The Kingdom has invested around $400 billion in tourism, making it the largest tourism investor in the world, according to Saudi Minister of Tourism Ahmed Al-Khatib.
Speaking at the World Economic Forum (WEF) in Davos, Switzerland, Al-Khatib said the government is focusing on building new tourist destinations, improving transport, and upgrading infrastructure across the country. These investments are part of Vision 2030, Saudi Arabia’s long-term plan to modernise its economy and create new sources of income.
Major tourism projects underway
Al-Khatib explained that a large share of the funding is being used to develop world-class destinations along the Red Sea coast, as well as in Diriyah and Qiddiya. These areas are being turned into major tourist and entertainment hubs designed to attract visitors from around the world.
The Kingdom is also investing heavily in aviation and transport infrastructure. This includes the launch of Riyadh Airlines and the construction of the new King Salman International Airport, which is expected to become one of the largest airports globally.
He said these projects are supported not only by the government’s Public Investment Fund (PIF) but also by strong participation from the private sector.
“Tourism is a key part of Vision 2030,” Al-Khatib said. “Our goal is to diversify the economy and make it more flexible and sustainable. That is why we are developing new sectors such as tourism, mining, and sports.”
Tourism sector growth and jobs
Saudi Arabia officially launched its tourism development drive in 2019. At that time, tourism contributed only 3% to the country’s GDP. The government set a target to increase this figure to 5% by 2025—a goal that has already been achieved.
Over the last five years, the tourism sector has created around 250,000 new jobs, Al-Khatib said. Today, tourism accounts for 5% of the Saudi workforce, showing how fast the industry has grown.
The minister also highlighted plans to significantly expand the country’s hotel capacity. Saudi Arabia currently has about 500,000 hotel rooms, but this number is expected to rise to 600,000–650,000 rooms by 2030.
This expansion is necessary to support major international events that Saudi Arabia will host in the coming years, including Expo Riyadh 2030 and the 2034 FIFA World Cup.
Sports and events driving tourism
Saudi Arabia is increasingly using global sporting events to attract tourists and promote the country as a travel destination. Al-Khatib pointed to the Spanish Super Cup match between Real Madrid and Barcelona, which was hosted in the Kingdom, as a successful example.
He said such high-profile events bring strong financial benefits. Tourists usually stay for three to four nights, spending money on hotels, food, shopping, and local experiences. At the same time, these events help improve Saudi Arabia’s global image and create positive publicity for its tourism sector.
Global tourism reaches new highs
The push comes at a time when global tourism is booming again. According to a new report from the United Nations World Tourism Organization (UNWTO), global tourism export revenues reached a record $2.2 trillion in 2025.
The report also showed that international tourist arrivals rose to 1.52 billion in 2025, the highest level ever recorded. This was an increase of 4% compared with the previous year.
Most destinations worldwide reported strong performance, with visitor numbers surpassing pre-pandemic levels seen in 2019. The data highlights the strong recovery and long-term growth potential of the global tourism industry.
Saudi Arabia at Davos 2026
Saudi Arabia is taking an active role at the 2026 World Economic Forum in Davos, where it is hosting the “Saudi House” pavilion. The Saudi delegation is led by Foreign Minister Faisal bin Farhan.
This year’s WEF annual meeting is held under the theme “A Spirit of Dialogue” and brings together global leaders, policymakers, and business executives from around the world.
Saudi House first appeared as a standalone pavilion at WEF Davos 2025. For 2026, it has expanded significantly and will host more than 20 sessions, including 10 dialogues officially accredited by the WEF.
These sessions focus on global cooperation, economic growth, sustainability, and Saudi Arabia’s role in shaping the future of tourism, investment, and development.
Published: 21th January 2026
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