New Program Encourages Private Investment in Saudi Tourism Sector

On its path to becoming one of the world’s most visited destinations, Saudi Arabia has launched a new initiative to attract private investment to its tourism sector. This newly announced program comes on the heels of a significant tourism milestone, and aims to inject USD 80 billion into this section of the economy.

The Kingdom of Saudi Arabia welcomed 100 million tourists in 2023, an achievement that came seven years ahead of the timeline laid out by Saudi Vision 2030. These 100 million tourists spent more than SAR 250 billion, and prompted the Saudi government to raise its tourism target to 150 million annual visitors by 2030.

Supporting such a large number of visitors represents a significant, and expensive, challenge. The Saudi government is therefore hoping that private investment will play a large role in developing the infrastructure needed to host such a large number of travellers. To this end, they have launched their Tourism Investment Enablers Program. 

This program seeks to aid local and international investors in developing the tourism and hospitality industry with  key features such as easing access to government-owned land, improving project development processes, reducing market entry barriers, and cutting annual government fees. The Saudi government is also taking steps to simplify and streamline the processes associated with tourism investment; notably, The Ministry of Investment is partnering with the Ministry of Tourism to create the forthcoming Tourism Investment One Stop Shop, which digitises and simplifies the experiences of those who wish to invest in Saudi Arabia’s tourism industry.

The Tourism Investment Enablers Program aims to benefit Saudi communities by localising services such as contracting, design, and consulting. The program is expected to create 120,000 job opportunities, and is just one of the ways Saudi Arabia is looking to diversify its economy.