Saudi Arabia is rapidly emerging as a key destination for global investors, especially in its booming hospitality and tourism sectors, which hold vast potential for growth. PKF hospitality group, a globally recognized leader in the hospitality industry, has identified the Kingdom as the largest single opportunity in the field, a position it is expected to maintain for the next five years.
Despite the swift pace of development and the ambitious nature of its projects, some skepticism remains, particularly concerning the timelines for completion. However, PKF experts believe that Saudi Arabia will exceed expectations and emerge as a transformed nation in the coming years.
“By 2030, many of the mega-projects will be completed, marking a significant shift in the country. While challenges and delays are always possible, the transformation is inevitable,” a PKF representative stated.
Vision 2030: A Roadmap to Success
PKF recently hosted its 196+ spotlight event in Riyadh, recognizing the massive scale of Saudi Arabia’s ongoing developments. Many of these projects, some valued at over $100 billion each, are part of the Kingdom’s ambitious Vision 2030 plan.
This strategic roadmap aims to reduce Saudi Arabia’s dependence on oil by focusing on sectors like tourism, health, and education. With a staggering $800 billion earmarked for investment, the goal is to create unique experiences for local travelers, millions of pilgrims, and international tourists seeking new adventures.
Giga-Projects Leading the Way
Key projects under Vision 2030, such as NEOM, the Red Sea Project, Qiddiya, and Diriyah Gate, have already made significant progress, alleviating concerns about their completion. Nils Heckscher, Head of PKF’s Africa Consulting Practice, which also oversees the Middle East, acknowledged that some projects might face delays due to challenges in securing materials, expertise, and staffing. However, he is confident that many will meet their deadlines.
Trojena, for example, will host the 2029 Asian Winter Games. Although its location may seem unconventional due to Saudi Arabia’s climate, the region is cooler than the rest of the country and even experiences snowfall in winter. Trojena’s cutting-edge architecture and technology will enable the hosting of winter sports competitions in the heart of Saudi Arabia.
In addition to Trojena, NEOM will also feature a tech city, a coastal area, and an international seaport. The development will include residential, retail, and office spaces, creating a mega city that combines nature with urban living.
Sustainability at the Core
Sustainability is a critical aspect of these projects, influencing every stage from design to operation. Heckscher praised the strong focus on ESG (Environmental, Social, and Governance) principles in the public-private partnerships driving these developments. Local materials and labor will be prioritized, with significant efforts to train and employ Saudis in various roles.
“We are committed to adding value to our clients’ projects and see a great demand for the services we provide. Saudi Arabia is currently the largest opportunity for hospitality and tourism, and this will continue for at least the next five years,” said Christian Walter, Global CEO of PKF hospitality group.
With its ambitious projects, strategic vision, and commitment to sustainability, Saudi Arabia is set to become a major player in the global tourism and hospitality industries.
