Saudi Arabia’s hospitality sector recorded a 48% increase in international visitors in the second quarter of 2025 compared to the same period last year, solidifying its status as a premier tourism destination globally. According to a recent report by CBRE, the growth is fueled by varied tourism sectors including leisure, cultural, and religious travels, in addition to ongoing infrastructure investments in preparation for significant events such as Expo 2030 and various global sporting tournaments.

This upward trend in tourism is also propelling hotel developments, particularly in Riyadh, where new project announcements, including IHG’s debut of EVEN Hotels, are revitalizing the market. The increasing pipeline is anticipated to boost lodging capacity, broaden service offerings, and cater to the growing demand for both premium and midscale accommodations.

In line with the tourism surge, new regulatory measures in Saudi Arabia’s real estate sector are fostering foreign investment and promoting sustainable population growth. Policies now facilitate foreign residents’ participation in homeownership, representing a pivotal change in the kingdom’s economic approach. “By welcoming foreign investment, we foresee a transformative wave of inbound capital over the next five years,” stated Matthew Green, Head of Research MENA at CBRE. “This not only supports ambitious FDI targets but also drives non-oil economy diversification and strengthens economic stability.”