Projects to build hotels and homes in the Middle East are valued at USD 1.9 trillion.

  • Nov. 19, 2023
Projects to build hotels and homes in the Middle East are valued at USD 1.9 trillion.

The Middle East's hospitality investment outlook has shown that Egypt, the United Arab Emirates, and Saudi Arabia are leading the way in terms of investment, according to fresh data that was made public before to the Future Hospitality Summit.

Middle Eastern hospitality and real estate ventures

In the Middle East, there are now USD 1.9 trillion worth of residential and hospitality projects in development. Ninety percent (USD 1.7 trillion) of this investment is made up of Saudi Arabia, the United Arab Emirates, and Egypt combined. This information was released before to the Future Hospitality Summit, which got underway in Abu Dhabi on September 25.

With USD 1.2 trillion in projects planned, Saudi Arabia is the region's top investor, according to Knight Frank. With USD 300 billion, the UAE comes next, followed by Egypt with USD 200 billion. This demonstrates the Middle East's will to receive 160 million tourists annually by 2030.

According to Turab Saleem, partner and head of HTL MENA at Knight Frank, the Middle East was the first area in the world to fully recover from the pandemic in terms of business. The travel and tourism industry in the Middle East and North Africa saw the largest gain in GDP contribution globally this year, at 46.9 percent.

Saleem continued, "New trends that add value and efficiency and generate higher investment returns are being fostered by the surge of new hospitality and tourism-related projects in the region. The Middle East's tourism industry is expanding thanks in large part to factors like streamlined visa procedures, aggressive marketing campaigns, green initiatives, innovation and technology, enhanced connectivity with new airline players, personalised guest interactions, and a booming holistic health and well-being sector.

The Middle East's expanding hotel industry

The president of HVS ME's MEA and South Asia, Hala Matar Choufany, stated: "Over the last 15 years, we have experienced exponential growth supported by a massive increase in hotel supply." Furthermore, the region's supply of high-quality hotel rooms increased from roughly 100,000 in 2010 to 540,000 in 2022. There was a rise in occupied room nights from 27 million to 135 million. Over the next five years, the area anticipates adding 180,000 hotel rooms. The expected increase in room nights occupancy by 2028 to 184 million. Large government spending plans have been essential in promoting private investment and drawing FDIC investment to the area. In comparison to other regions, the Middle East is currently positioned for greater growth.

The head of Colliers' MENA capital markets and executive director, James Wrenn, said: "There's a strong appetite for the hospitality asset class, particularly in Dubai and Ras Al Khaimah." This is strengthened by the UAE's continued growth as a premier travel destination and by the excellent performance from the previous year. These days, buyers are paying closer attention to deals.

The Bench hosts the Future Hospitality Summit.