Exclusive: Sultan Al-Otaibi, CEO of Taiba, on Building Momentum as Saudi Tourism Grows
This story appeared in our November 2025 issue, which featured the Top 100 CEOs in the Middle East.
Saudi Arabia is working hard to grow its tourism sector as part of Vision 2030. Local companies are changing their plans to match the country’s rapid development. Many are expanding their hotels and real estate projects to prepare for the expected rise in visitors—whether they come for religious trips, vacations, or major global events like Expo 2030 in Riyadh and the FIFA World Cup 2034.
The Kingdom has set big goals for tourism. It wants the sector to contribute about 10% to the national economy. After surpassing its goal in 2023 by welcoming 100 million visitors, the target has now been increased to 150 million by 2030. In 2024 alone, Saudi Arabia received 115.9 million tourists—29.7 million international visitors and 86.2 million domestic travelers. Tourism spending reached $75.7 billion. Notably, international travel for nonreligious reasons grew to 59% of all foreign visits, with leisure and holiday trips leading the way.
“Saudi Arabia is becoming a major global investment destination, as Vision 2030 has opened many new opportunities,” says Sultan Al-Otaibi, CEO of Taiba, a major Saudi hospitality and real estate group. Taiba manages 40 hotel and real estate properties with a total of 8,000 rooms across seven Saudi cities: Riyadh, Jeddah, Makkah, Madinah, Al Jubail, Al Khobar, and Tabuk. As of November 6, 2025, the company’s main shareholders are the Al-Issa family through Assila Investments (22.2%), Mohammed Al-Issa (7.7%), the Public Investment Fund (8.49%), and AlSalehat Investment (6%). By 2024, its hotels had hosted more than 2.5 million guests. Taiba operates Saudi hospitality brands like Makarem Hotels, Nur by Makarem, and Dur Communities, and also partners with international hotel chains including Hilton, IHG, Marriott International, and Accor.
Matthew Green, Head of Research at CBRE MENA, says that attracting 70 million international visitors by 2030 shows how important tourism is for Saudi Arabia’s growth. “This demand includes everything—from luxury resorts at The Red Sea Project and Amaala to entertainment projects in Qiddiya,” he said. “There is also strong need for mid-range hotels for religious visitors in Makkah and Madinah, and for general tourists in Jeddah and AlUla. For developers, this means big opportunities to build mixed-use communities that include hotels, shops, entertainment, and housing.”
Taiba has already made big moves to keep up with the fast-growing market. The most important step was buying Dur Hospitality in a share exchange deal worth $725.3 million. “This expansion supports the goals of Vision 2030 and meets the growing demand,” says Al-Otaibi. He explains that as Hajj and Umrah continue to open up, and major projects like the King Salman Gate in Makkah move forward, there is a strong need for more hotels. Taiba is also growing in cities that will host major future events, including Riyadh, which will welcome Expo 2030, most FIFA World Cup 2034 matches, and the AFC Asian Cup 2027. Riyadh is also home to major projects such as King Salman International Airport, King Salman Park, Diriyah Gate, Qiddiya, and the New Murabba. Taiba also plans to strengthen its presence in other important cities like Makkah, which is seeing major real estate and infrastructure development, including the newly announced King Salman Gate project.
In November 2023, Taiba completed its purchase of Dur Hospitality. After the merger, Dur was removed from the stock exchange, and its hotels – including Makarem Hotels and properties under Marriott, IHG, and Rixos – became part of Taiba. This deal increased Taiba’s assets by 119%, from $1.2 billion in 2022 to about $2.5 billion by the end of 2023. Over the last two years, Taiba’s revenue grew from $88 million in 2022 to $351 million in 2024. Net profit for shareholders also rose from $37 million to $89 million. The company’s market value increased from $1.2 billion before the merger to $2.8 billion as of October 2025.
Together with the merger benefits, Taiba invested $880 million in eight new projects that will add 2,500 rooms to its portfolio. “Some of these properties are already in soft-opening, and most will be fully open by the end of the year,” says the CEO. These include the Rixos Obhur Jeddah Resort, the first Rixos hotel in Saudi Arabia, with 247 villas spread over 90,000 square meters on the Red Sea, and the Makarem Burj Al Madinah Hotel near the Prophet’s Mosque, with 364 rooms.
Looking ahead, Taiba plans soft openings for Novotel Madinah (394 rooms) and Crowne Plaza Riyadh Al Takhassusi (302 rooms and suites). The Sheraton Taiba Hotel in Madinah, with 436 rooms, is scheduled to open in 2026, just a few meters from the Prophet’s Mosque. At the same time, Taiba is building logistics hubs to support operations, including a major center in Madinah that is nearly ready, offering staff housing and central kitchens.
According to Sarah Gasim, Senior Vice President and Head of Hotels & Hospitality KSA at JLL, developers and investors now need to shift from a “build and sell” approach to a “build and operate” model to stay competitive. This means focusing on experience-driven hospitality rather than just real estate, building strong partnerships, investing in talent and local workforce development, applying ESG principles and smart technology, and taking advantage of new freehold ownership rules and improving market transparency.
“Great opportunities are growing in Saudi Arabia’s heritage and cultural tourism areas (AlUla, Diriyah, Historic Jeddah), in coastal waterfront developments (Red Sea, AMAALA, Jeddah Waterfront, Eastern Province), and in expanding secondary cities and the pilgrim economy (Abha, Taif, Baha, Hail, Makkah, Madinah),” she explains.
This is exactly what Taiba is focusing on now. As the company expands its hotel brands, it is also building more partnerships with global hotel groups. “These partnerships give us strong operations and international expertise,” says Al-Otaibi. Marriott International’s first partnership in the Middle East was with Dur Hospitality. Taiba also works with IHG through the Crowne Plaza and Holiday Inn brands, and with Accor for the Rixos and Novotel brands. In 2024, the company signed a deal with Hilton to manage the first Waldorf Astoria in Madinah (currently Taiba Front Hotel), using Sharia-compliant Murabaha financing worth $113.3 million.
In July 2024, a Taiba subsidiary signed another agreement with Marriott International to manage a new Marriott hotel in the stc Square project in Riyadh. The hotel will have 159 rooms, entertainment facilities, and flexible meeting spaces. “The project is funded through our own capital and bank financing,” the CEO shares. Taiba also owns undeveloped land in Madinah and Riyadh, with several plots in the advanced planning stage. “In Riyadh, we have about 70,000 to 80,000 square meters in top locations,” Al-Otaibi says. The company also operates the Marriott Riyadh Diplomatic Quarter, the Kingdom’s first green hotel, opened in 2019, and manages 450 apartments and villas in the same area.
“Some land plots were on hold while we waited for updated city planning,” he explains. “Once those plans are finalized, we will announce new projects that match them.” While investment values are still being reviewed, Taiba aims to add between 3,000 and 4,000 new rooms by 2030. The company is also upgrading its existing properties. “We are renewing our hotels to meet modern expectations and offer experiences that match today’s market,” says the CEO.
Al-Otaibi is a hospitality industry veteran with more than 25 years of experience. He started his career at Dur Hospitality, where he held several roles before becoming CEO in 2019. After the merger, he became the CEO of Taiba as well. Over the years, he has helped launch many hotels and major projects, working across different departments. “I started in finance, moved to development, operations, and partnerships, then became VP in 2014, CEO of Dur in 2019, and CEO of both companies in 2024,” he says.
For him, the key to success is empowering teams and working with passion. “Passion and team empowerment are essential for achievement,” Al-Otaibi advises. “It is also important to stay adaptable and learn from mistakes.”
Looking at how the sector is changing, the CEO shares a vision aligned with Saudi Arabia’s future. “We started early in hospitality, and now we are seeing a major transformation,” he says. “By 2030, tourism will become Saudi Arabia’s second-largest contributor to the economy after oil — with hospitality at its center.”
Published: 12th December 2025
For more article like this please follow our social media Twitter, Linkedin & Instagram
Also Read:
ADCB Raises $1.7B in Record Rights Issue on High Demand
Silver Hits $60 for the First Time—Why It’s Rising Faster Than Gold
Alpha Dhabi and Mubadala buy Apollo’s EU loan portfolio
