Riyadh:The Ministry of Tourism and the Ministry of Investment have unveiled the first batch of projects approved under the Hospitality Investment Enablers (HIE) Program during a joint event. The ceremony was attended by Minister of Tourism Ahmed Al-Khateeb and Minister of Investment Fahad Al-Saif.
According to Saudi Press Agency, the HIE Program is designed to accelerate private-sector investment in hospitality projects across selected tourism destinations in Saudi Arabia. By targeting enablers, the program aims to reduce operating costs and boost the economic viability of hospitality projects, thereby enhancing their investment appeal.
Ahmed Al-Khateeb emphasized the program's role in accommodating the Kingdom's growing tourism demand by expanding hospitality capacity in high-potential destinations. This initiative not only adds hotel rooms but also unlocks investment opportunities, stimulates economic activity, and supports sustainable tourism growth. The newly approved projects reflect a strong investor confidence in Saudi Arabia's tourism sector and the potential for private-sector partnerships to contribute to destination development.
Fahad Al-Saif highlighted the tourism sector as a priority within the National Investment Strategy, noting its role in diversifying the economy and contributing to GDP, in line with Saudi Vision 2030. He described the HIE Program as a model of government collaboration to encourage private-sector participation and develop attractive investment opportunities in promising tourism locations. The initiative aims to simplify the investor journey, maximize economic impact, create jobs, and increase local content.
The first batch of projects comprises 19 initiatives across five high-potential tourism destinations, expected to unlock SAR6.7 billion in investment and create over 17,000 jobs. By 2030, these projects are projected to contribute more than SAR2.4 billion annually to GDP and over SAR5.3 billion to local content by increasing demand for locally sourced goods, services, and materials.
The approved projects will add over 3,000 hotel rooms to Saudi Arabia's tourism supply, with around 40% of these rooms located in coastal destinations to enhance the sun-and-sea tourism offering. Beyond accommodation, the projects will generate opportunities in food and beverage, retail, entertainment, and other visitor-focused services, supporting local businesses and stimulating economic growth.
The first project is expected to open by the end of 2026, with additional openings in subsequent years, culminating in 2029. This expansion will bolster Saudi Arabia's hospitality capacity ahead of major international events such as Expo 2030 and the FIFA World Cup 2034.
