Saudi Arabia Approves 19 Tourism Projects Worth 6.7 Billion Riyals

Saudi Minister of Tourism Ahmed Al-Khateeb announced the approval of 19 projects in the first phase of the hospitality sector investment enablers program, with total investments reaching 6.7 billion riyals. The announcement came during a ceremony approving the first group of projects benefiting from the program, which aims to support hotel investment in the Kingdom.

Al-Khateeb stated that the Kingdom expects to welcome large numbers of tourists in the coming period as it hosts major events, including the Expo and the World Cup, and that it is working on expanding airports to accommodate the anticipated increase. He pointed out that King Salman International Airport aims for a capacity of up to 120 million passengers, emphasizing that the partnership between the government and the private sector will contribute to executing several tourism projects.

The tourism sector contributes about 5% of the Kingdom's GDP, and the number of jobs in it has exceeded one million, according to Al-Khateeb. The number of rooms that the 19 projects will provide or the number of jobs they will create has not yet been announced, meaning that the operational impact of the first batch will become clear once project implementation begins.

The program aims to support investment in the hospitality sector through facilities targeted at projects, with the first batch representing the starting point for a series of expected approvals. The government links the expansion of hotel capacity to the increase in tourist numbers, especially as major events that the Kingdom is preparing to host draw near.

What do these terms mean?

Hospitality Investment Enablers Program: A government program providing facilities and incentives for investors to build and operate hotel projects in Saudi Arabia.

Gross Domestic Product: The value of goods and services produced by a country's economy during a period, used to measure the size of the economy.

Public-Private Partnership: Cooperation between the government and companies to fund and implement projects, with risks and returns distributed between both parties.