Middle East hospitality sector focuses on sustainable growth at Dubai summit

Speakers from across the industry shared insights on how hospitality can evolve to meet modern travelers’ needs while addressing the increasing demand for environmental and economic sustainability. AN photo
Speakers from across the industry shared insights on how hospitality can evolve to meet modern travelers’ needs while addressing the increasing demand for environmental and economic sustainability. AN photo
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Updated 01 October 2024
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Middle East hospitality sector focuses on sustainable growth at Dubai summit

Middle East hospitality sector focuses on sustainable growth at Dubai summit

DUBAI: The hospitality sector in the Middle East is at a pivotal moment, focusing on sustainable growth and investment while adapting to the evolving demands of modern travelers.  

This was a key theme during the second day of the Future Hospitality Summit in Dubai, which focused on shaping the future of the sector through discussions on technology, sustainability, and talent development. 

As the industry navigates post-pandemic recovery and aims for long-term growth, the region is emerging as a leader in these transformations.  

Speakers from across the industry shared insights on how hospitality can evolve to meet modern travelers’ needs while addressing the increasing demand for environmental and economic sustainability. 

The hospitality market in the Gulf Cooperation Council region continues to show strength, with high occupancy rates and increasing demand. 

According to Sarah Duignan, director of client relationships at Smith Travel Research, occupancy rates across the GCC range between 65 percent and 70 percent, remaining robust compared to global standards.  

While growth rates in some regions have slowed, the GCC has seen a rise of 1-2 percent in demand during the first eight months of the year. 

Duignan described the current market trend as a “soft landing,” where demand continues to grow, albeit more slowly in some areas than others.  

“We had been using the word ‘deceleration.’ So, to be clear, it is not declining. Demand is still increasing, as it is increasing more rapidly in some locations than others. Here is one of those where it’s more than others.” 

The region remains a positive outlier in global trends, with strong demand supporting high occupancy and steady growth in average room rates. 

Geopolitical uncertainty   

Global economic and geopolitical factors were also discussed, with Pat Thaker, editorial director for the Middle East and North Africa at The Economist, offering an analysis of how these issues could impact the hospitality sector.  

“No region is exempt. Slowing US growth, subdued growth in Europe, and more dynamic growth in Asia, Africa, and the Middle East — these three regions will continue to be the most dynamic growth sectors in the coming years,” she said. 

Despite the challenging global landscape, Thaker forecasted moderate growth of around 2-3 percent over the next five years, a level that, while not extraordinary, is not indicative of a recession either.  

She emphasized that geopolitics would continue to play a significant role in shaping the future of the industry, both globally and regionally. 

Role of technology  

One of the key themes of the day was the role of technology in hospitality, where it was emphasized that it should serve to enhance, not replace, the human element.  

Tatiana Labaki, director of innovation & technology at NEOM’s hotel division, argued strongly that human-centric hospitality should be a given in the industry. “If we need to still say in hospitality that the human comes first, then we are failing,” she stated. 

For Labaki, technology — particularly artificial intelligence — is not an end in itself but a means to elevate human interactions. This viewpoint aligns with NEOM’s broader goals, which are heavily shaped by Saudi Vision 2030. 

Labaki also touched on the importance of young Saudi talent, who she described as eager to grow, learn, and take pride in their work.  

This natural inclination toward hospitality, coupled with a vibrant work culture, is a key asset for NEOM and other Saudi Arabian projects aiming to position the Kingdom at the forefront of global hospitality.  

UAE vision  

As the UAE continues to grow as a global tourism hub, the country’s commitment to both expansion and sustainability was a major focus of discussions.  

Abdulla Al-Marri, UAE economy minister and chairman of the Tourism Council, outlined plans to significantly increase hotel capacity and enhance offerings, particularly in medical and wellness tourism, which he believes should be integrated to provide a more comprehensive visitor experience. 

“We are targeting over 450 billion dirhams ($122 billion) worth of investments in the hotel industry itself to come in over the next seven years. We are looking to really increase the number of keys and the range of hospitality products offered,” Al-Marri said. 

The UAE is also working closely with the UN to adopt the Measuring Sustainable Tourism, or MST, framework, demonstrating its commitment to sustainability. This move reflects the country’s broader strategy to balance rapid growth with long-term environmental stewardship.  

The focus on domestic tourism was another key point, with Al-Marri emphasizing the need for a 50/50 balance between domestic and international visitors as part of a sustainable tourism model. 

Aligning sustainability with growth  

Sustainability was a recurring theme throughout the day, with industry leaders calling for better alignment between policy and business practices.  

Haitham Mattar, special adviser for UN Tourism and managing director for the Middle East and South West Asia at IHG Hotels & Resorts, stressed the need for greater cooperation between governments and hotel operators to establish unified metrics for sustainability.  

He pointed to New Zealand as a country that has successfully integrated sustainability into its tourism policies, noting that hotel operators must now compete on sustainability metrics such as carbon emissions and energy consumption. 

Mattar warned that while tourism remains a significant contributor to greenhouse gas emissions, it is also an essential driver of economic growth, particularly in vulnerable regions.  

“Looking at the sector as a whole and what it can contribute, I always say tourism is too big to fail, with its various components. The sector includes branded hotels, unbranded hotels, operators, small and medium-sized businesses, and larger enterprises, and the challenge is to achieve a sense of alignment,” he said, underscoring the need for collective action to ensure that the sector’s growth does not come at the expense of environmental sustainability. 

Deals and announcements 

Beyond the discussions, significant deals were announced during the second day of the summit, reinforcing the region’s growing role as a global hub for hospitality investment. Red Sea Global and Marriott International revealed plans to open The Ritz-Carlton AMAALA, a luxury property set to open in 2025. 

This will be the fourth collaboration between the two companies and further establishes Saudi Arabia as a key player in luxury tourism.  

The property, with its 391 rooms and panoramic views of the Red Sea, will offer guests a unique blend of luxury, wellness, and natural beauty. 

Louvre Hotels Group also announced plans to expand its presence in the Middle East and North Africa, with 4,000 new hotel keys to be added by 2027. Of these, 1,000 will be in Saudi Arabia, reflecting the country’s burgeoning hospitality sector. 

This expansion is part of the group’s larger strategy to double its footprint in the MENA region by 2030. With a focus on affordable midscale hotels, Louvre Hotels Group aims to meet the growing demand for accessible hospitality options across the region. 


Saudi Arabia boosts maritime connectivity with Syria, Turkiye via EXS6 service

Saudi Arabia boosts maritime connectivity with Syria, Turkiye via EXS6 service
Updated 25 February 2025
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Saudi Arabia boosts maritime connectivity with Syria, Turkiye via EXS6 service

Saudi Arabia boosts maritime connectivity with Syria, Turkiye via EXS6 service

JEDDAH: Saudi Arabia’s maritime connectivity with Syria and Turkiye is set to improve with the launch of the EXS6 shipping service, strengthening the Kingdom’s trade links with international markets.

Saudi Ports Authority, known as Mawani, announced on Feb. 25 the addition of a new shipping service by Caerus, which will connect Jeddah Islamic Port with İskenderun Port in Turkiye and Latakia Port in Syria — offering a capacity of 858 twenty-foot equivalent units. 

This will enhance the terminal’s competitive advantage, improve maritime connectivity, support national exports and imports, and strengthen maritime ties between Saudi Arabia and Syria.

According to Mawani’s statement, the service launch also maximizes Jeddah’s port competitive value.

The development aligns with the authority’s strategy to improve the Kingdom’s standing in the global maritime connectivity index, optimize port operations, and strengthen the nation’s trade ties with international markets.

It also supports the country’s National Transport and Logistics Strategy — a comprehensive plan designed to transform Saudi Arabia into a global logistics hub, enhancing its position as a key international trade and transport center. 

Mawani, which recently earned the bronze level in the 2024 King Abdulaziz Quality Award for the government sector, emphasized its role in advancing the development of Saudi ports through strategic partnerships with major international shipping lines. These efforts are enhancing the global standing of the ports, expanding maritime trade routes, and improving infrastructure and operational efficiency.

Earlier in February, Mawani introduced five new shipping services by Hapag-Lloyd and Maersk at Jeddah Islamic Port, King Abdulaziz Port in Dammam, and Jubail Commercial Port, aimed at strengthening the Kingdom’s ports and boosting their regional and global competitiveness.

The new services link these terminals to key international destinations, including Port Said in Egypt, Morocco’s Tangier, and Algeciras in Spain. The destinations also include Aqaba in Jordan, Jebel Ali in the UAE, and Mundra and Pipavav of India, as well as Salalah in Oman, with a combined capacity of 19,869 TEUs.

Jeddah Islamic Port has been chosen as the central hub for the “Gemini” collaboration between Hapag-Lloyd and Maersk, further cementing Saudi ports’ role as a logistics hub bridging three continents. This move enhances cargo-handling efficiency, supports trade growth, and drives economic development, Mawani said.


Saudi Arabia signs deals to localize aerospace manufacturing, enhancing aviation hub status

Saudi Arabia signs deals to localize aerospace manufacturing, enhancing aviation hub status
Updated 25 February 2025
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Saudi Arabia signs deals to localize aerospace manufacturing, enhancing aviation hub status

Saudi Arabia signs deals to localize aerospace manufacturing, enhancing aviation hub status

JEDDAH: Saudi Arabia has signed multiple deals to localize aerospace manufacturing, including aircraft maintenance, air taxis, vertical take-off and landing systems, and helicopter production.

During the Aerospace Connect Forum, held in Jeddah from Feb. 24 to 25, the National Industrial Development Center signed a memorandum of understanding with European aerospace company Airbus to advance helicopter development and localization in the Kingdom. 

This agreement, along with others, supports Saudi Vision 2030 by advancing aerospace localization and reinforcing its position as a global leader in the sector. It also aligns with the Kingdom’s broader aviation and industrial strategies, promoting local manufacturing, attracting investment, and reducing reliance on imports.

Additionally, these deals contribute to the General Authority for Military Industries’ goal of localizing 50 percent of military spending by 2030. 

By partnering with global aerospace leaders, Saudi Arabia is fostering technological advancement, high-skilled jobs, and industrial growth.

The Industrial Center has also signed a MoU with Kingdom Aero Industries and Doroni, focusing on localizing and manufacturing light-sport aircraft with vertical takeoff and landing capabilities.

This partnership is a significant move for both parties as they aim to develop the H1-X flying car and strengthen Saudi Arabia’s position inthe aerospace sector.

US startup Doroni has secured a promising partnership with Innovation Wings Industries, operating as KAI in the Kingdom. 

The deal involves a $30 million investment, with KAI contributing $5 million initially and up to $25 million over the next two years, in exchange for a 40 percent stake in Doroni.

This partnership is set to accelerate the development of the H1-X, with commercial-scale manufacturing planned in Saudi Arabia starting in 2027.

Both companies plan to establish a joint venture to manufacture and distribute the flying car globally.

For the startup, this represents a major step in realizing its vision, while for KAI, it offers the opportunity to create a world-class production hub in the Kingdom, supporting the nation’s aviation ambitions.

The NIDC also signed a deal with the Second Airport Cluster Co. to localize national industries in the aerospace sector by enabling and incentivizing investors by providing dedicated spaces within airports to establish specialized aircraft maintenance centers.

The strategic partnership represents a significant advancement in airport operations by uniting government efforts and fostering the localization of aircraft component manufacturing in the Kingdom, aligning with the National Aviation Strategy and the National Industry Strategy, according to Cluster2.

As part of the National Industrial Development and Logistics Program’s efforts to localize the manufacturing of titanium sponge metal-melting process pipes, the center signed an MoU with AIC STEEL and AMIC to strengthen local capabilities in advanced materials production and support industrial supply chains.

The NIDC also inked an agreement with Life Shield, a Saudi company with extensive experience in the defense, military, and security sectors. 

Moreover, another deal was made with Auto Gyro, a firm which specializes in the innovation, production, and distribution of gyroplanes. These pacts focus on localization and technology transfer for manufacturing air taxis and helicopters.


Saudi Arabia’s Al-Ahsa records 500% growth in local, international tourists in 2024

Saudi Arabia’s Al-Ahsa records 500% growth in local, international tourists in 2024
Updated 19 February 2025
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Saudi Arabia’s Al-Ahsa records 500% growth in local, international tourists in 2024

Saudi Arabia’s Al-Ahsa records 500% growth in local, international tourists in 2024

RIYADH: Saudi Arabia’s Al-Ahsa region saw a 500 percent surge in tourists, surpassing 3.2 million in 2024 compared to 2019, the Kingdom’s tourism minister said.

In a speech at the Al-Ahsa Forum 2025, held from Feb. 19-20, Ahmed Al-Khateeb shared that total tourist spending last year surpassed SR3.3 billion ($897 million), with a growth rate estimated at about 400 percent compared to 2019, the Saudi Press Agency reported.

This falls in line with the ministry’s continued efforts to enable investment and qualify national cadres to enhance Al-Ahsa’s position as a prominent tourist destination in Saudi Arabia, the minister highlighted.

The growth also aligns with the qualitative shift in the regional hospitality sector. The number of licensed tourism facilities in the governorate grew by 52 percent compared to 2023, while the total number of licensed rooms reached 2,700 by the end of last year.

During his speech, Al-Khateeb also underlined the efforts made by the tourism sector, indicating that the Tourism Development Fund has financed several qualitative projects in the governorate, most notably the five-star “Hilton Al-Ahsa” hotel, “Radisson Blu” and “Hilton Garden Inn.”

He said the Ministry of Tourism has implemented several initiatives and various exemptions as well as incentive programs aimed at further elevating the investment environment in Al-Ahsa and that several projects have benefited from them, with a total value of SR3 billion in the governorate.

Al-Khateeb added that the ministry has provided more than 5,300 training prospects for national cadres in the governorate from 2023 until today, exceeding 50 percent of the target of training opportunities allocated by the ministry for the region, which was announced in the previous version of the forum.

He also said that the entity will continue working to qualify national cadres by providing the largest possible number of training opportunities for locals.

During a meeting with investors and entrepreneurs as part of his broader tour across Saudi regions in November, Al-Khateeb said that the Kingdom committed over SR3.5 billion to develop 17 tourism projects in Al-Ahsa, positioning the region as a key destination in the nation’s growing travel sector. 

At the time, the minister outlined plans to enhance the governorate’s tourism infrastructure while noting that the projects would add more than 1,800 hotel rooms, thereby leveraging Al-Ahsa’s natural and cultural assets to attract domestic and international visitors.


Saudi Cabinet approves land transport system to enhance efficiency, sustainability 

Saudi Cabinet approves land transport system to enhance efficiency, sustainability 
Updated 19 February 2025
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Saudi Cabinet approves land transport system to enhance efficiency, sustainability 

Saudi Cabinet approves land transport system to enhance efficiency, sustainability 

JEDDAH: Saudi Arabia’s Cabinet has approved a comprehensive land transport system aimed at modernizing road networks and integrating advanced technologies to enhance efficiency and sustainability. 

The system, approved at a Cabinet session in Riyadh and chaired by Crown Prince Mohammed bin Salman, is designed to streamline regulations and drive environmentally friendly growth in the industry, the Saudi Press Agency reported. 

It also aligns with global trends toward sustainable and connected transport infrastructure, reinforcing Saudi Arabia’s ambition to lead in logistics and mobility innovation.

With more than 73,000 km of roads, Saudi Arabia ranks among global leaders in terms of connectivity, according to the Transport General Authority. 

Saleh bin Nasser Al-Jasser, minister of transport and logistics services and chairman of the TGA board, said the decision supports the regulation and development of land transport across various sectors, aligning it with the Kingdom’s rapid economic expansion. 

“This includes the adoption of modern technologies in transportation and sustainable mobility, the regulation of transport facilities, the activation of professional and technical qualifications, and the establishment of clear obligations for licensees, along with defining the rights and responsibilities of beneficiaries,” Al-Jasser said. 

The new system, he noted, reflects the leadership’s ongoing support for the transport and logistics sector, reinforcing its role in driving economic growth and investment. 

It is also expected to contribute to the objectives of the National Transport and Logistics Strategy, which seeks to improve mobility, enhance quality of life, and facilitate economic activities with high standards of safety, efficiency, and service delivery. 

Al-Jasser emphasized that the system would create investment opportunities, ensure fair competition, and strengthen the private sector’s role as a key partner in development. 

“This will increase the sector’s contribution to the national economy and further establish the Kingdom as a global leader in integrated transport services, in line with Saudi Arabia’s Vision 2030, helping to build a sustainable and prosperous future,” he said. 

Under the new framework, the TGA will classify key road transport activities, including passenger and cargo transport, and car rentals. Service providers will be required to comply with operational and technical conditions set by regulators, while violations will be subject to penalties. 

The system also introduces stricter rules on foreign cargo truck operations, aiming to regulate entry and enforce compliance with local transport laws. 

Additionally, passenger transport operators will be prohibited from soliciting customers directly, such as calling out to passengers or following them to offer services. 


Red Sea Global to fund new destinations through residential sales proceeds: Group CFO

Red Sea Global to fund new destinations through residential sales proceeds: Group CFO
Updated 14 February 2025
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Red Sea Global to fund new destinations through residential sales proceeds: Group CFO

Red Sea Global to fund new destinations through residential sales proceeds: Group CFO

RIYADH: Saudi Arabia’s Red Sea Global is leveraging the proceeds from its residential sales to finance upcoming projects along its coastal properties, according to the company’s top executive.

In an interview with Arab News during the Public Investment Fund’s Private Sector Forum, RSG’s Group Chief Financial Officer Martin Greenslade disclosed that the company intends to sell around 300 residences in its Red Sea development, along with a similar number at its wellness-focused destination, AMAALA.

“Those residences are available to anyone to purchase, both Saudis and international buyers. We’ve already sold some of them, some of those have been reserved, and the pricing for that is anywhere up from SR5 million ($1.3 million) upward. There’s something to suit every taste and every budget,” Greenslade said.

The CFO added that revenue from these sales serves as a critical source of funding for RSG’s long-term plans. “This external investment, as people buy those residences, is an important driver of funding for us,” he said.

Infrastructure development

RSG has already invested more than $20 billion into its flagship projects, with an equal or greater amount expected to be invested in future developments, according to the company’s top official.

Initial funding for infrastructure was provided by the Saudi government and the sovereign wealth fund, with additional support from bank loans and public-private partnerships for key utilities, such as solar energy and water treatment.

To finance the Red Sea project, RSG secured a SR14 billion green financing facility in 2021, which has been fully utilized to support the final stages of development. Greenslade emphasized that future funding will continue to come from a combination of residential sales, bank loans, and external investments.

“We are actively exploring co-investment opportunities, similar to our partnerships for the Four Seasons and Jumeirah hotels, where we have sold 50 percent stakes to external investors,” he noted.

Growing tourism and occupancy targets

Despite limited international flight options, with service currently only available from Dubai, RSG has seen strong demand from domestic and Gulf Cooperation Council tourists.

Five hotels have already opened, with 11 more scheduled to launch this year on Shura, the main hub island of The Red Sea development.

Although the company has not released specific occupancy figures, Greenslade expects the numbers to align with global luxury destinations over time, aiming to reach the 70 percent occupancy benchmark.

“The full launch of the destination is planned for the end of 2025, once all hotels are operational,” he explained. “We anticipate stronger occupancy rates as international connectivity improves, given that global travelers typically stay longer.”

Investment opportunities

“We’ve led to over SR20 billion of contracts, 70 percent of that has gone to Saudi based organizations,” he said.

The company is inviting businesses to establish operations in the Red Sea area, spanning retail, hospitality, and entertainment sectors.

Entrepreneurs with unique tourism-related offerings are encouraged to invest, though Greenslade underlined that quality control and operational expertise are key criteria for entry.

“Yes, we’re looking for entrepreneurs, we’re looking for people who want to bring, who believe they have, something to bring to the tourists that will be coming to our destination,” he said.

“We have created our own seaplane and diving companies due to initial service gaps, but we are actively training and hiring local talent, with over 500 graduates from our vocational programs already employed,” he added.

Environmental sustainability is a core focus of RSG’s strategy. The company plans to plant and restore 50 million mangroves over the next five years and has mapped 180 coral reefs using artificial intelligence to ensure ecological preservation.

The Red Sea destination is entirely solar-powered, with electric vehicles and water sports helping to maintain a carbon-neutral footprint.

Moving forward, RSG will continue to incorporate green financing into its funding strategy, further reinforcing its commitment to regenerative tourism.

“The savings from our solar farms alone will prevent over a million tonnes of carbon dioxide emissions annually,” Greenslade emphasized.