Tourism, investment ministries unveil first approved projects under Hospitality Investment Enablers Program

RIYADH — The Ministry of Tourism and the Ministry of Investment have unveiled the inaugural set of projects authorized under the Hospitality Investment Enablers (HIE) Program during a joint event in Riyadh. The event featured the presence of Minister of Tourism Ahmed Al-Khateeb and Minister of Investment Fahad Al-Saif.

The HIE Program, a collaborative initiative between the Ministry of Tourism and the Ministry of Investment, aims to encourage private-sector investment in hospitality projects across select tourism locations within the Kingdom. The program provides essential support to reduce operational expenses for approved hospitality projects, thereby boosting their economic feasibility and investment attractiveness.

Minister Al-Khateeb highlighted that the HIE Program embodies the Kingdom's steadfast commitment to fostering private-sector investment and addressing the growing demand for tourism. "By expanding hospitality capacity in high-potential destinations, we are not merely adding rooms; we are unlocking new investment prospects, stimulating economic activity across tourism destinations, and promoting sustainable tourism growth," he stated.

Fahad Al-Saif emphasized that the tourism sector is a focal point of the National Investment Strategy, owing to the substantial investment prospects it offers and its instrumental role in diversifying the economy and elevating its GDP contribution, in alignment with the objectives of Saudi Vision 2030. He further explained that the HIE Program exemplifies government partnership to develop enablers that bolster private-sector participation, stimulate high-quality investment, and enhance the allure of investment prospects in promising tourism destinations.

Collaborating with the Ministry of Tourism and other pertinent entities, they are striving to fortify the investment environment and streamline the investor's journey, ensuring that projects turn into sustainable ventures, maximize their economic and developmental impact, generate employment, and augment local content.

The first batch comprises 19 projects spread across five high-potential tourism destinations. Collectively, these initiatives are anticipated to attract SR6.7 billion in investment and generate over 17,000 jobs. By 2030, the projects are projected to directly add more than SR2.4 billion to GDP and contribute over SR5.3 billion to local content through the generation of demand for locally produced goods, services, and materials.

The approved projects will augment the Kingdom's tourism supply by more than 3,000 hotel rooms. Roughly 40 percent of the planned rooms will be situated in coastal areas, reinforcing the Kingdom's sun-and-sea tourism offerings. The benefits will extend beyond accommodation, creating opportunities in food and beverage, retail, entertainment, and other visitor-oriented services.

This expanded activity will bolster local businesses, stimulate economic growth in the participating destinations, and enhance the overall visitor experience.

The first project is slated to commence operations by the end of 2026, followed by subsequent openings in subsequent years, with the concluding projects projected to be operational by 2029. This expansion of the Kingdom's hospitality capacity is set to occur ahead of Expo 2030, the FIFA World Cup 2034, and other significant international conferences and exhibitions.