KSA and UAE Tourism – A $250+ Bn Opportunity by 2030 

KSA and UAE Tourism – A $250+ Bn Opportunity by 2030 

Akshay JayaprakasanAkshay Jayaprakasan

Tourism has always been part of the Gulf story, but now it has moved from being a support act to one of the main characters. Both Saudi Arabia and the UAE have tied their economic futures to the success of this sector, putting tourism right at the center of their national transformation plans. This is not just about visitors and hotel stays. It is about creating a new identity for the region, one that goes beyond oil and appeals to global travelers with culture, entertainment, and world-class hospitality. The stakes are high, and the numbers suggest the Gulf is entering a golden age for tourism. 

1. Tourism at the Core of National Visions 

Saudi Arabia’s Vision 2030 and the UAE’s Tourism Strategy 2031 leave no doubt about priorities. Both countries have set targets to increase the share of tourism in their GDP, supported by investments in mega projects, simplified visa processes, and major infrastructure developments. Saudi Arabia is building entirely new destinations like NEOM and the Red Sea, while also reviving historic areas like AlUla and Diriyah to showcase its heritage. The UAE is expanding tourism zones through master plans in Abu Dhabi and Dubai, reinforcing its position as a global travel hub. These strategies make it clear that tourism is not an accessory; it is the backbone of future growth. 

2. KSA Surpasses UAE in Inbound Arrivals 

For decades, the UAE held the upper hand in attracting international visitors. That changed in 2023 when Saudi Arabia officially surpassed the UAE in inbound arrivals. The growth has been driven by billions poured into airports, hotels, and cultural attractions that go well beyond pilgrimage. Saudi Arabia welcomed over 27 million international visitors in 2023, and the country is now on track to cross 50 million by 2030. This is not just a win for tourism, but a signal that Saudi Arabia’s broader diversification plan is delivering real, visible results. 

3. A $250 Bn Market by 2030 

Looking ahead, the combined tourism markets of Saudi Arabia and the UAE are set to cross USD 250 billion by 2030. This growth will not be evenly spread. Hospitality is expected to see the largest gains, as more travelers demand hotels, resorts, and airlines to cater to diverse needs. Leisure and entertainment will boom on the back of mega theme parks and cultural festivals, while food services and retail will capture the spillover of higher visitor spending. From global luxury brands to small café owners, the ripple effect will touch nearly every sector of the economy. 

Tourism in the Gulf is no longer an aspiration; it is already reshaping economies and lifestyles. Saudi Arabia and the UAE are rewriting the rules of the regional travel market, competing with each other while also raising the Gulf’s global profile. The transformation is backed by serious money and a clear vision, which makes this more than a short-term trend. For businesses, the message is simple: the tourism wave is here to stay, and those who ride it early will be the biggest winners.