Hospitality Market Drivers

13 Oct. 2025

patternn-img
Image

Strategic Location and Cross-Border Accessibility

The MENA’s geographic position at the crossroads of Europe, Asia, and
Africa makes it a prime transit and long-stay hub. Projects like new
airports in Riyadh, high-speed rail in UAE, Egypt and Morocco, and
enhanced cruise terminals across Dubai, Abu Dhabi, and the Red Sea are
further enabling cross-border tourism and multi-destination trips.

Investor-Friendly Reforms and Incentives

The region has introduced several regulatory reforms to boost private
and foreign investment in hospitality:

● Unified GCC Tourism Visa (Upcoming) – A Schengen-style visa
expected to increase intra-GCC travel.

● Relaxation of local partnership requirements – International
hospitality brands can now invest independently in many GCC
nations.

● Tax breaks and subsidies – For example, The Red Sea Development
Company in Saudi Arabia offers incentives for sustainable
hospitality investors.

● PPP frameworks – Governments are actively encouraging
public-private partnerships to co-develop hospitality infrastructure.

With these enablers in place, the GCC’s hotel room capacity is expected
to exceed 1.1 million in the coming years — reflecting both the scale of
ambition and the speed of delivery.

Source: BNC Network