Nineteen hospitality projects in five promising tourism destinations have been approved in the first round of the Hospitality Investment Enablers (HIE) Program, the Ministry of Tourism and the Ministry of Investment announced at a joint event attended by Minister of Tourism Ahmed Al-Khateeb and Minister of Investment Fahad Al-Saif.

The program, run by the tourism ministry with the investment ministry, gives private developers incentives that lower the operating costs of hotel projects and so improve their economic case. Officials expect the first batch to activate investments worth up to SAR6.7 billion and generate more than 17,000 new jobs. By 2030, the projects should add over SAR2.4 billion a year directly to GDP and more than SAR5.3 billion to local content through demand for Saudi goods, services and materials.

The projects will bring more than 3,000 new hotel rooms to the market, about 40% of them in coastal destinations, boosting beach tourism. Their impact is also expected to reach food and beverage, retail and entertainment businesses in the host destinations.

Al-Khateeb said the program reflects a lasting commitment to private-sector investment and to meeting rising tourism demand, adding that more capacity in high-potential destinations means 'more than adding rooms' and opens new investment opportunities. He said the first projects show investor confidence in the sector.

Al-Saif said tourism is a priority sector in the National Investment Strategy and described the program as a model of cooperation between government bodies to attract quality investment, ease the investor journey, create jobs and raise local content.

The first project is due to open by the end of 2026, with the rest coming online in stages through 2029, so that all are fully operating ahead of major events the Kingdom will host, including Expo 2030 and the FIFA World Cup 2034.