Saudi ministries approve first hospitality projects under HIE program

20 Oct 2026 · Riyadh

StatusReported by Saudi Gazette; the ministries announced the approvals at a joint event.

Saudi Arabia’s Ministry of Tourism and Ministry of Investment announced the first batch of projects approved under the Hospitality Investment Enablers (HIE) Program at a joint event in Riyadh on Monday. The ceremony was attended by Tourism Minister Ahmed Al-Khateeb and Investment Minister Fahad Al-Saif.

The program offers targeted enablers to accelerate private-sector investment in hospitality projects across selected tourism destinations in the Kingdom. The ministries say it helps reduce operating costs for approved projects, improving their economic viability and investment appeal.

Al-Khateeb said the program reflects a commitment to enabling private-sector investment and responding to growing tourism demand. He said expanding hospitality capacity in high-potential destinations would create investment opportunities, stimulate economic activity and support sustainable tourism growth. He described the first approved projects as reflecting investor confidence in Saudi tourism and the role of private-sector partnerships in destination development.

Al-Saif said tourism is a priority under the National Investment Strategy because of its investment opportunities and role in diversifying the economy and increasing its contribution to GDP. He described the program as a model of government collaboration to strengthen private-sector participation and make investment opportunities in promising destinations more attractive.

Al-Saif added that the Ministry of Investment is working with the Ministry of Tourism and other relevant entities to strengthen the investment environment and simplify the investor journey. He said the aim is to turn opportunities into sustainable projects, increase their economic and developmental impact, create jobs and raise local content.

The first batch comprises 19 projects across five high-potential tourism destinations. Together, they are expected to unlock SR6.7 billion in investment and create over 17,000 jobs. By 2030, they are expected to contribute more than SR2.4 billion annually to GDP and over SR5.3 billion to local content through demand for locally sourced goods, services and materials.

The approved projects are expected to add more than 3,000 hotel rooms to the Kingdom’s tourism supply. Approximately 40 percent of the planned rooms will be in coastal destinations, supporting the country’s sun-and-sea tourism offering.

The expected activity extends beyond accommodation to food and beverage, retail, entertainment and other visitor-focused services. The article says this could support local businesses, stimulate economic growth in participating destinations and contribute to a more integrated visitor experience.

The first project is scheduled to open by the end of 2026, with further openings over the following years and the final projects set to become operational in 2029. The added hospitality capacity is planned ahead of Expo 2030, the FIFA World Cup 2034 and other major international conferences and exhibitions.

Why this mattersFor a Madinah practice, the program’s stated focus on selected destinations makes the approved-project pipeline worth tracking, although the article does not identify the five locations or confirm that Madinah is among them. If Madinah is included, the expected hotel supply and related food, retail and visitor-service activity could inform hospitality feasibility, mixed-use planning and local consultant or contractor outreach. The operating-cost support may also be a benchmark to investigate when advising hospitality investors, but the article gives no terms or project-level details.

Key figures19 projects · five destinations · SR6.7 billion · over 17,000 jobs · by 2030 · more than SR2.4 billion annually · over SR5.3 billion · more than 3,000 hotel rooms · approximately 40 percent · end of 2026 · 2029 · Expo 2030 · FIFA World Cup 2034

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