Saudi Arabia has emerged as a surprising frontrunner in the race to become the Middle East’s top tourist destination. Under the ambitious Vision 2030 initiative, the Kingdom has experienced a staggering 73% growth in tourism as per latest UN Tourism, catching global attention and surpassing its regional neighbor, the UAE, which has long dominated the global tourism industry.
While the UAE, and particularly Dubai, continues to attract millions of visitors with its luxury shopping, world-class infrastructure, and mega-events, Saudi Arabia’s strategic focus on cultural tourism, religious tourism, and luxury developments is reshaping the tourism landscape. By promoting its rich cultural heritage, futuristic mega-projects, and religious significance, Saudi Arabia is drawing a broader and more diverse audience, appealing to high-spending international travelers.
The following analysis explores the key factors driving Saudi Arabia’s rapid rise and compares them with the UAE’s steady and established approach to tourism growth. With both nations heavily investing in their tourism sectors, a closer look reveals why Saudi Arabia is currently outpacing the UAE in attracting international visitors and becoming a global tourism powerhouse.
Saudi Arabia’s Vision 2030 and Strategic Investments and Promotion
Saudi Arabia’s Vision 2030 is changing the country’s tourism landscape in ways few could have imagined. As part of this ambitious initiative, the government is aiming to transform the Kingdom into a global tourism hub. A key part of this plan is attracting 150 million tourists annually by 2030, a significant jump from the 100 million tourists it welcomed in 2023—an impressive milestone achieved seven years ahead of schedule. The rapid growth has already allowed Saudi Arabia to surpass its regional rival, the UAE, in terms of tourism expansion.
Key Components of Vision 2030 in Travel and Tourism
Investment and Infrastructure Development
The Saudi government has set aside nearly $1 trillion to build out its tourism infrastructure. This includes the construction of 500,000 hotel rooms and major projects like NEOM and the Red Sea Project. These projects aim to not only attract tourists but to position Saudi Arabia as a luxury destination that rivals the UAE’s own premium offerings.
The Red Sea Project alone will feature over 50 hotels and more than 8,000 rooms, creating a world-class destination with pristine leisure facilities and natural reserves. This focus on upscale accommodations and unique attractions plays a pivotal role in why Saudi Arabia has managed to leap ahead of the UAE in such a short time.
Diverse Tourism Offerings
Saudi Arabia’s growth isn’t just about luxury tourism. Vision 2030 focuses on expanding both leisure and religious tourism. With a target of increasing Hajj and Umrah visitors from 10 million to over 30 million by 2030, the Kingdom is appealing to religious travelers on a scale unmatched by the UAE.
Additionally, new luxury resorts like Amaala and Sindalah, cultural heritage destinations such as Al Ula, and large urban projects like King Salman Park in Riyadh offer something for every type of traveler. These varied offerings give Saudi Arabia an edge over the UAE, allowing it to attract a broader and more diverse range of visitors.
Cultural and Entertainment Expansion
One of the more noticeable changes driven by Vision 2030 is the booming entertainment sector. Since 2017, Saudi Arabia has opened cinemas and hosted international events such as music festivals—developments that were unimaginable in the past. The number of entertainment venues skyrocketed from 154 in 2017 to 227 in 2020, fueling domestic and international interest in the Kingdom’s new, vibrant culture.
This surge in entertainment venues also stands in contrast to the UAE’s more established, yet now more predictable, entertainment landscape. Saudi Arabia’s push to create a lively, dynamic environment has become one of its key attractions, drawing in younger and more adventurous tourists.
Visa free policies:
Saudi Arabia allows visa-free entry for citizens of 49 countries, making travel to the Kingdom more accessible as part of its efforts to boost tourism under Vision 2030. This includes nations such as Australia, Canada, and the United States, as well as several European countries like Germany, France, Italy, and Spain. Visitors from China (including Hong Kong and Macau) can also benefit from this visa-free policy, alongside other nations such as Japan, South Korea, Russia, and New Zealand. The visa-free entry extends to several Middle Eastern and European countries like Austria, Denmark, Norway, and Hungary. By offering visa-free access to these 49 nations, Saudi Arabia aims to attract a broader range of international tourists, supporting its goal to position itself as a major global tourism destination.
Saudi Arabia’s Global Tourism Shift: Growth in Business, Leisure, and Religious Travel
In Saudi Arabia, a landmark shift towards welcoming tourists from across the globe has led to a dramatic increase in international visitor numbers, driving growth across business travel, leisure travel, and religious tourism. By relaxing visa restrictions and promoting its rich cultural and historical heritage, alongside religious tourism, the Kingdom has opened its doors to a broader audience than ever before. This transformation has created a booming tourism industry that appeals to both corporate and leisure travelers, presenting significant opportunities for global investors. With Saudi Arabia’s ambitious infrastructure projects and strategic developments under Vision 2030, the nation is positioning itself as a key player in the global travel market, attracting a diverse range of visitors and investors alike.
Mecca and Spiritual Tourism: A Key Driver of Saudi Arabia’s Tourism Growth
Saudi Arabia is witnessing a significant boost in tourism, also driven by the increasing popularity of spiritual tourism, particularly due to the religious significance of Mecca. As the holiest city in Islam, Mecca attracts millions of pilgrims each year for the Hajj and Umrah pilgrimages. In 2024, more than 1.5 million foreign Muslims arrived in Mecca, highlighting the global draw of the city for spiritual travelers. The Kingdom’s commitment to expanding facilities and infrastructure around these religious sites, including increased accommodation and enhanced transportation services, has made it easier for pilgrims to visit.
Challenges Ahead
Even with all these advancements, there are challenges. While 82% of new hotel developments are targeting the luxury market, concerns are rising about affordability for average tourists. Industry leaders suggest that more budget-friendly options are needed to sustain the momentum and meet ambitious tourism targets.
Saudi Arabia’s infrastructure, though rapidly expanding, must also keep pace with the growing number of visitors. To avoid bottlenecks and service disruptions, continuous investments in transportation and hospitality services will be critical to maintaining the Kingdom’s lead over the UAE.
Economic Impact
Saudi Arabia is aggressively promoting its tourism industry as part of Vision 2030, a transformative initiative designed to diversify the economy and reduce reliance on oil revenues. The Kingdom’s ambitious approach has driven a 73% growth in tourism, allowing it to surpass the UAE and solidify its position as a leading global destination. Below are the key strategies fueling this remarkable transformation.
Tourism is becoming a vital part of Saudi Arabia’s economy, contributing about 11.5% to GDP in 2023. With the tourism sector projected to grow further, it could reach SAR 836.1 billion by 2034 while employing over 3.6 million people. This economic boost not only positions Saudi Arabia ahead of the UAE but also solidifies tourism as a central pillar of the Kingdom’s broader Vision 2030 diversification strategy.
Economic Goals and Investments
Saudi Arabia’s government has set clear economic goals to leverage tourism as a vital contributor to its growth. By 2030, the Kingdom plans to increase tourism’s contribution to GDP from 4.5% to 10%, with a long-term target of reaching 16% by 2034. In 2023, the tourism sector already contributed approximately 11.5% to the GDP, a clear sign of the significant growth underway.
To achieve these targets, the Kingdom has earmarked more than $800 billion for tourism-related projects. This includes the construction of 500,000 hotel rooms and the development of premier tourist destinations like NEOM, Diriyah, and AlUla. These investments are vital to Saudi Arabia’s efforts to overtake the UAE as the region’s top tourism hub.
Targeting Key Markets: Attracting High-Spending Tourists
Unlike the UAE, which often focuses on mass tourism, Saudi Arabia has strategically decided to target high-spending travelers from key markets such as China, India, and Europe. The emphasis here is on quality over quantity, allowing the Kingdom to avoid the overtourism issues that more mature destinations face. By focusing on attracting wealthier tourists, Saudi Arabia is strengthening its appeal to an elite international audience.
By 2030, the country aims to increase international visitor numbers from 100 million in 2023 to 150 million, with a special focus on encouraging visitors to explore its cultural and natural attractions. This approach further distinguishes Saudi Arabia from the UAE by offering a richer, more varied travel experience.
Infrastructure Development: Building for the Future
Saudi Arabia is heavily investing in infrastructure to support its rapidly growing tourism sector. A key part of this strategy involves major projects like the new airport in Riyadh and the extensive expansion of hotel accommodations. One of the highlights is the Red Sea Project, a luxury tourism destination that will feature resorts and leisure facilities that cater to high-end travelers.
To make international travel more convenient, the Kingdom is also establishing a new airline and enhancing its transportation network. These developments aim to make Saudi Arabia more accessible to global tourists, giving it a competitive edge over the UAE.
Cultural Initiatives: Showcasing Saudi Arabia’s Rich Heritage
Saudi Arabia’s Vision 2030 doesn’t just focus on infrastructure—it also highlights the Kingdom’s rich cultural heritage. The Saudi Seasons initiative promotes cultural events year-round, showcasing festivals, concerts, and exhibitions that attract both domestic and international visitors. Since its inception, the initiative has generated significant revenue and driven up visitor numbers.
In addition, Saudi Arabia is opening up its UNESCO World Heritage sites for tourism, enhancing its appeal as a cultural destination. This focus on heritage and authenticity sets the Kingdom apart from the UAE, which often emphasizes luxury and modernity over cultural experiences.
Employment and Training: Preparing a Skilled Workforce
To meet the growing demand in tourism, Saudi Arabia is also investing in workforce development. The government is preparing 100,000 individuals annually for roles in the tourism sector, focusing on improving service quality and boosting local employment. This commitment to training not only ensures excellent service for visitors but also creates jobs for the Saudi population, making tourism a win-win for both the economy and the people.
Future Projections: A Bright Horizon
Looking ahead, the World Travel & Tourism Council forecasts continued robust growth for Saudi Arabia’s tourism sector. By 2024, the sector’s contribution to GDP is expected to reach SAR 498 billion, with employment projections reaching 3.6 million jobs by 2034. International visitor spending is also projected to rise significantly, signaling a robust recovery and expansion in the post-pandemic era.
Saudi Arabia’s Vision 2030: Investments in Infrastructure and Cultural Promotion Fuel 73% Tourism Growth, Surpassing the UAE
Saudi Arabia is leaving no stone unturned in its quest to overtake the UAE as the region’s top tourist destination. A substantial part of the Kingdom’s Vision 2030 plan involves building a world-class infrastructure to support its booming tourism sector. Below are the key strategies driving this monumental transformation.
Infrastructure Development: Luxury Accommodations Lead the Way
Saudi Arabia is committed to enhancing its tourism infrastructure, with a focus on creating premium experiences for international visitors. Out of the nearly $1 trillion investment, a substantial portion is allocated toward building 500,000 hotel rooms, with projections suggesting that 150,000 to 200,000 new rooms could be added in just the next two years. This puts the UAE on notice, as Saudi Arabia’s emphasis on luxury accommodations is quickly making it a competitive force in the region’s upscale tourism market. In fact, 82% of the new hotel developments are expected to be in the luxury segment.
Key projects include the Red Sea Project, which aims to open 50 luxury hotels along Saudi Arabia’s pristine coastline, and NEOM, a futuristic city featuring an array of leisure and hospitality facilities that cater to high-end travelers. Both projects are designed to attract the type of tourists who would typically choose the UAE—positioning Saudi Arabia as a strong alternative.
King Salman International Airport: A Game-Changer for Saudi Arabia’s Tourism Growth
Saudi Arabia is making substantial strides in expanding its aviation infrastructure with the development of King Salman International Airport in Riyadh, which is poised to become one of the largest airports in the world. Once completed, the airport is expected to handle 120 million passengers annually, with plans to increase this capacity to 185 million by 2050. This ambitious project aligns with Vision 2030, supporting the Kingdom’s broader goal of becoming a global hub for travel and tourism. The airport’s expansion is a key part of Saudi Arabia’s efforts to boost connectivity and facilitate the growing influx of international visitors, further contributing to the nation’s rapid tourism growth.
Giga-Projects and Attractions: Cultural Heritage Meets Modern Tourism
In addition to infrastructure, Saudi Arabia is investing heavily in giga-projects that highlight its unique cultural heritage while offering tourists unforgettable experiences. Iconic projects like Diriyah, Qiddiya, and the UNESCO World Heritage site of AlUla are being developed to provide an authentic and immersive cultural experience that sets the Kingdom apart from the UAE’s modern, luxury-focused appeal.
One standout project, AlUla, is expected to contribute 120 billion Saudi riyals ($32 billion) to the national GDP and create around 38,000 new jobs by 2030. This ambitious project ties into Saudi Arabia’s broader vision of using tourism to boost the economy while celebrating its rich cultural past—a key factor in the Kingdom’s tourism growth.
Economic Impact: A Growing Force in Global Tourism
Saudi Arabia’s tourism boom shows no signs of slowing down. In 2023, the Kingdom welcomed 100 million tourists, reaching this milestone ahead of schedule. By 2030, the government aims to increase that number to 150 million, with a clear focus on attracting high-spending travelers from China, India, and Europe. These efforts are paying off, positioning Saudi Arabia ahead of the UAE in terms of strategic growth and potential.
Tourism’s contribution to GDP is set to rise from 4.5% to 10% by 2030, a testament to the government’s commitment to making tourism a central pillar of economic diversification. The increased visitor spending, coupled with job creation in the tourism sector, highlights how Saudi Arabia’s extensive investments are turning it into a leading travel destination.
AlUla: Saudi Arabia’s Cultural Crown Jewel
At the heart of Saudi Arabia’s tourism success is AlUla, a region that blends ancient history with modern luxury to attract both domestic and international tourists. The Kingdom is actively promoting AlUla as a premier destination through several key strategies, designed to compete with the UAE’s established tourist appeal.
Strategic Marketing Campaigns: Taking AlUla to the World
In February 2024, the Royal Commission for AlUla (RCU) launched the global marketing campaign titled “Forever Revitalising”. This campaign targets high-potential markets like the UK, France, Germany, Italy, the US, China, India, and the GCC, with the goal of increasing international visitor numbers from 35% to 45% by the end of 2024. The initiative reflects Saudi Arabia’s focused strategy on reaching high-value travelers who seek cultural and natural experiences—something that distinguishes AlUla from the more modern attractions of the UAE.
The Royal Commission for AlUla aims to attract 291,000 visitors in 2024 and 380,000 by 2025, building on the 263,000 visitors recorded in 2023.
Infrastructure Development: Expanding for the Future
AlUla’s rapid growth is supported by a robust infrastructure plan. By the end of 2024, the region plans to increase hotel capacity from 824 rooms to 1,300, with further expansion to 5,500 rooms by 2030 and 8,500 by 2035. This includes new openings like Dar Tantora The House Hotel and The Chedi Hegra, both aimed at attracting luxury travelers.
In tandem with hotel growth, AlUla’s airport is undergoing a massive expansion, with the goal of boosting capacity from 400,000 to 6 million passengers annually. This development enhances accessibility for international tourists and aligns with Saudi Arabia’s goal of making AlUla a leading cultural tourism destination, rivaling even the UAE’s most popular sites.
Cultural and Historical Significance: An Open-Air Museum
What sets AlUla apart from other destinations, including the UAE, is its cultural and historical significance. As home to Saudi Arabia’s first UNESCO World Heritage site, AlUla offers visitors a glimpse into ancient civilizations with archaeological sites like Hegra, which spans over 200,000 years of history. The Royal Commission for AlUla (RCU) is developing the area into an open-air museum that preserves its natural and historical integrity while providing visitors with authentic experiences.
Economic Impact: AlUla as a Key Contributor
The development of AlUla is expected to contribute around 120 billion Saudi riyals ($32 billion) to Saudi Arabia’s GDP by 2030, creating 38,000 jobs in the process. This level of impact showcases the importance of AlUla in driving Saudi Arabia’s broader Vision 2030 goals, making it a crucial element in the country’s strategy to surpass the UAE as the region’s top tourist destination.
Partnerships and Collaborations: Enhancing Connectivity
To enhance accessibility, the RCU has partnered with several airlines to improve connectivity to AlUla, particularly from Europe and the US. Currently, charter flights make up 65% of all arrivals, underscoring the Kingdom’s focus on attracting high-end tourists who value cultural and heritage experiences.
Dubai’s Tourism Growth in 2024: UAE’s Steady Expansion
While Saudi Arabia is experiencing a rapid 73% growth in tourism, Dubai continues to perform strongly in the global tourism market. In the first half of 2024, Dubai welcomed 9.31 million international overnight visitors, an 8.9% increase from the previous year. Even more notably, this marks an 11.4% increase compared to pre-pandemic levels in 2019, reflecting Dubai’s steady recovery and continued appeal as a top destination. However, when compared to Saudi Arabia’s dramatic surge, the UAE’s growth appears more measured.
Comparing Tourism Strategies: UAE vs. Saudi Arabia
Both Saudi Arabia and the UAE are investing heavily in their tourism sectors, but their approaches and focus areas show key differences.
Tourism Infrastructure Development: UAE’s Established Base vs. Saudi Arabia’s New Giga-Projects
The UAE has long been known for its world-class infrastructure, with Dubai leading the way through iconic hotels, resorts, and airports that cater to both leisure and business travelers. The country’s established transport networks make it an attractive destination, enabling easy access for millions of tourists.
On the other hand, Saudi Arabia is catching up quickly with its large-scale giga-projects like NEOM and the Red Sea Project, which are designed to position the Kingdom as a global leader in luxury tourism. While the UAE’s infrastructure is well-established, Saudi Arabia’s focus on building cutting-edge projects brings a new dimension to regional tourism, offering fresh, futuristic experiences.
Diversification of Tourism Offerings: UAE’s Broad Appeal vs. Saudi Arabia’s Cultural and Religious Focus
The UAE has long relied on its luxury shopping, beach resorts, and a wide array of cultural and eco-tourism experiences to appeal to a broad spectrum of visitors. This diversification ensures that Dubai attracts everything from adventure seekers to high-end luxury tourists.
Saudi Arabia, on the other hand, has emphasized cultural and religious tourism. The Hajj and Umrah pilgrimages are central to its tourism strategy, with plans to significantly increase the number of religious visitors. While the UAE offers more modern attractions, Saudi Arabia leverages its heritage sites like AlUla, appealing to tourists seeking historical and spiritual experiences.
Government Initiatives: UAE’s Well-Established Policies vs. Saudi Arabia’s Aggressive Promotion
The UAE government has played an active role in promoting tourism through visa reforms and marketing campaigns, ensuring the country remains an accessible and attractive destination. Mega-events like Expo 2020 Dubai and year-round cultural initiatives have been instrumental in maintaining the UAE’s high visitor numbers.
In comparison, Saudi Arabia has taken a more aggressive approach, rolling out Vision 2030 with substantial investments and promotions to boost its global tourism appeal. Saudi Arabia’s rapid push into the tourism market contrasts with the UAE’s more gradual and steady promotion of its tourism sector.
Visa Free Policy:
The UAE has made travel easier for tourists by allowing visa-free entry to citizens of 55 countries, including a diverse range of nations from across the globe. Among these countries are Argentina, Austria, Belgium, Brazil, and China, as well as several European Union member states such as Germany, France, Italy, and Spain. Visitors from Japan, Israel, and Mexico can also enjoy visa-free access, alongside several Middle Eastern countries like Bahrain, Kuwait, and Saudi Arabia. Additionally, citizens of Switzerland, Norway, and Iceland benefit from the UAE’s open visa policy. This initiative is part of the UAE’s strategy to boost tourism by making the country more accessible to a broader international audience, enhancing its appeal as a global destination.
Personalized Travel Experiences: UAE’s Tailored Luxury vs. Saudi Arabia’s Emerging Luxury Market
The UAE is known for offering personalized travel experiences, especially tailored to high-net-worth individuals. Luxury travelers in the UAE can enjoy exclusive experiences designed to meet their specific needs, whether it’s private beach resorts or custom cultural tours.
Saudi Arabia is just beginning to develop its luxury market, with projects like Amaala and Sindalah targeting wealthy international tourists. While the UAE has an established reputation for luxury, Saudi Arabia’s emerging luxury sector offers new, unique experiences that appeal to a different kind of traveler.
Sustainable Tourism Practices: UAE’s Established Eco-Tourism vs. Saudi Arabia’s Sustainable Development Goals
The UAE has incorporated sustainable tourism practices into its offerings for years, with a growing focus on eco-friendly travel options. Dubai’s eco-tourism sector includes desert safaris, nature reserves, and environmental conservation programs, drawing tourists who want to minimize their carbon footprint.
Saudi Arabia, meanwhile, is integrating sustainability into its Vision 2030 development plans. Projects like the Red Sea Project are designed with sustainability at their core, balancing tourism growth with environmental preservation. While both countries are committed to sustainability, Saudi Arabia’s focus is more on sustainable development as it builds out its tourism infrastructure.
UAE’s Tourism Infrastructure Investments: A Steady Path to World-Class Experiences
As Saudi Arabia’s Vision 2030 fuels rapid growth, the UAE is following a more established, yet ambitious path to boost its tourism industry. The UAE’s focus remains on expanding its already world-class infrastructure, ensuring it continues to be a global tourism hotspot while Saudi Arabia rapidly builds its futuristic attractions. Both countries are making significant strides, but the UAE’s approach emphasizes steady, long-term growth.
Massive Investment Plans: UAE’s Strategic Commitment to Infrastructure
The UAE is planning to invest over $10 billion in tourism infrastructure as part of its new long-term tourism strategies. These investments will fund the development of attractions, hotels, and other tourism facilities that continue to position the UAE as a premier travel destination. Unlike Saudi Arabia, which is building much of its tourism industry from the ground up, the UAE is expanding its already well-established foundation.
Tourism investment in the UAE grew by 15.1% in 2023, and it’s expected to rise by nearly 12.5% in 2024. By 2034, total investments are projected to reach around AED50.9 billion ($13.8 billion). While Saudi Arabia is experiencing rapid growth, the UAE’s focus on steady, calculated investments shows a more sustainable approach to long-term tourism success.
Airport Expansions: Enhancing Connectivity
Airport expansions play a critical role in the UAE’s strategy to accommodate growing tourism numbers. In the first half of 2024, UAE airports saw a 14.2% increase in passenger traffic, handling over 71.7 million travelers. These numbers reflect the UAE’s established reputation as a global transit hub, something Saudi Arabia is still building towards with new projects like Riyadh’s new airport.
The UAE’s continued investment in its airport infrastructure allows it to maintain smooth, efficient connectivity for international travelers—a key area where it maintains an advantage over Saudi Arabia’s developing tourism infrastructure.
Hotel Construction: Expanding Capacity to Meet Future Demand
As part of its long-term vision, the UAE is focused on increasing the number of hotels and resorts to cater to the ever-growing demand for accommodations. In Abu Dhabi alone, hotel rooms are set to increase from 34,000 to 52,000 by 2030. New hotel chains like Nammos and Mondrian are being added to attract both luxury and mid-range travelers.
While Saudi Arabia’s hotel development focuses heavily on luxury accommodations, the UAE is broadening its offerings to meet the needs of various types of tourists. This balance between high-end and more accessible options sets the UAE apart in its ability to appeal to a wider range of visitors.
Attractions and Entertainment: A Blend of Culture and Adventure
The UAE’s diverse range of attractions continues to drive its tourism success. Major developments include the construction of the Guggenheim Museum, the expansion of Warner Bros World, the introduction of Harry Potter World, and enhancements to Yas Waterworld in Abu Dhabi. In Dubai, the lasting legacy of Expo 2020 and the ongoing success of Dubai Parks and Resorts reflect the UAE’s commitment to delivering world-class entertainment experiences.
By contrast, Saudi Arabia’s focus is more heavily placed on cultural and heritage projects, such as AlUla and the Diriyah Gate, but it’s also making strides in entertainment with projects like Qiddiya. The UAE’s already diverse entertainment portfolio allows it to continue appealing to both families and adventure seekers.
The UAE Tourism Strategy 2031: A Vision for the Future
All these developments align with the UAE Tourism Strategy 2031, which aims to attract AED100 billion in tourism investments and boost the sector’s GDP contribution to AED450 billion by 2031. The goal is to make the UAE not only a top destination in the region but also a world-class tourism hub. While Saudi Arabia is rapidly building its tourism future, the UAE is refining and enhancing what it has already established.
Economic Impact of Tourism in the UAE: A Steady Growth Path Compared to Saudi Arabia’s Rapid Surge
The UAE has long been recognized for the significant economic contributions of its tourism industry. In 2023, the sector contributed 11.7% of the UAE’s GDP, amounting to AED220 billion, and this is expected to rise to 12% (AED236 billion) by 2024. While these figures reflect the UAE’s steady growth, Saudi Arabia’s rapid 73% tourism growth under Vision 2030 is pushing the Kingdom toward a transformative period of development, giving it the potential to quickly catch up with the UAE’s established sector.
UAE’s Long-Term Investment in Tourism
The World Travel and Tourism Council (WTTC) projects that the UAE’s tourism industry will contribute around AED275.2 billion to GDP by 2034, a testament to the country’s ongoing commitment to fostering tourism as a major economic driver. In comparison, Saudi Arabia’s Vision 2030 projections aim for similar long-term impacts, with a focus on building the Kingdom’s economy through tourism investments that rival those of the UAE.
Tourism investment in the UAE is expected to grow by 12.5% in 2024, following a 15.1% increase in 2023. By 2034, total investments are projected to reach AED50.9 billion ($13.8 billion). The UAE currently leads the Gulf Cooperation Council (GCC) in tourism investment as a percentage of GDP, with around 9% of its GDP going into the tourism sector, and this is expected to rise to 12% by 2030. This sustained investment ensures the UAE remains a key player in regional tourism, even as Saudi Arabia’s newer projects rapidly gain traction.
Job Creation and Economic Diversification
Tourism in the UAE goes beyond GDP contributions—it plays a crucial role in job creation and economic diversification. In 2023, the sector generated approximately 809,000 jobs, with this number projected to increase to 833,000 by 2024. The growth in employment across various activities and fields has fostered economic stability and diversified revenue streams for the UAE.
Similarly, Saudi Arabia’s Vision 2030 places significant emphasis on job creation through its tourism initiatives, with projections indicating that the tourism sector could employ over 3.6 million people by 2034. While the UAE has been a leader in this space, Saudi Arabia’s aggressive investments in tourism infrastructure are expected to close the gap in employment growth over the next decade.
Here’s the conclusion that ties everything together, explaining why Saudi Arabia is currently surpassing the UAE in tourism growth:
Why Saudi Arabia is Beating the UAE in Tourism Growth
While both Saudi Arabia and the UAE have made impressive strides in developing their tourism sectors, Saudi Arabia’s rapid 73% growth under Vision 2030 signals a transformative shift that is outpacing the UAE’s more established but slower growth trajectory.
The UAE, particularly Dubai, has shown steady recovery with an 11.4% increase in tourism compared to pre-pandemic levels, demonstrating the strength of its established infrastructure and appeal. However, the UAE’s growth, while commendable, is slower in comparison to Saudi Arabia’s explosive expansion. Saudi Arabia’s ability to attract new visitors through massive investments, cultural and religious tourism, and futuristic developments under Vision 2030 has driven its tourism sector to grow faster than the UAE’s, despite Dubai’s continued success.
The key reasons for Saudi Arabia’s recent success lie in its aggressive investments and strategic promotion. With nearly $1 trillion committed to building a robust tourism infrastructure, including mega-projects like NEOM and the Red Sea Project, Saudi Arabia is crafting a futuristic, luxury-focused tourism experience that is catching global attention. In contrast, the UAE, while continuing to invest significantly, is building upon a more mature foundation, resulting in steadier but less dramatic growth.
Another major factor is Saudi Arabia’s focus on cultural and religious tourism. The Kingdom’s emphasis on expanding Hajj and Umrah pilgrimages, alongside the promotion of historical and cultural sites like AlUla and Diriyah, appeals to a broad audience seeking unique, spiritual, and authentic experiences—areas where the UAE has less emphasis.
Furthermore, Saudi Arabia’s rapid infrastructure expansion has allowed it to open up new destinations at an accelerated pace, compared to the UAE’s more gradual development. While the UAE continues to lead in established luxury markets, Saudi Arabia is tapping into high-spending travelers through newly developed luxury resorts, cultural projects, and personalized travel experiences, giving it a competitive edge in attracting international visitors.
Lastly, the aggressive marketing and government-backed initiatives under Vision 2030 are driving global awareness of Saudi Arabia as a rising tourism destination. While the UAE has long been a leader in regional tourism, its growth is slower in comparison to Saudi Arabia’s ambitious plans, which are propelling the Kingdom into the global tourism spotlight.
In summary, Saudi Arabia’s fast-paced investment, cultural focus, and strategic expansion have positioned it to temporarily surpass the UAE in tourism growth. However, the long-term sustainability of this growth remains to be seen, as both nations continue to innovate and compete for their share of the global tourism market.
Saudi Arabia
Riyadh – A City of Culture and Progress
As the capital of Saudi Arabia, Riyadh represents the heart of the kingdom. It’s where modern skyscrapers blend with historical landmarks. Start your journey at the National Museum, which offers a deep dive into Saudi Arabia’s culture, history, and evolution. You can also explore King Abdulaziz Historical Center, which highlights the country’s founder and his legacy. Don’t forget to visit Masmak Fortress, a vital historical site where the unification of Saudi Arabia began. The mudbrick fort is a symbol of the nation’s rich past, and you can enjoy its surrounding desert landscape.
For modern experiences, Kingdom Centre provides a panoramic view of the sprawling cityscape from its sky bridge. Shoppers and food lovers will find the mall within a great spot to explore luxury brands and dine at high-end restaurants. For a quieter cultural immersion, visit Al Diriyah, a UNESCO World Heritage site. The restored mud-brick structures of Diriyah take you back to the roots of Saudi Arabia’s royal family, offering a glimpse into the history of the Arabian Peninsula.
Riyadh also hosts exciting annual events like the Riyadh Season, a festival that brings art, culture, and entertainment to the city. You’ll find everything from international concerts to traditional Saudi performances. For a more local vibe, indulge in the food markets or a traditional Arabic coffee at any of the city’s charming cafés.
Jeddah – A Coastal Metropolis of Heritage and Modernity
Jeddah is the gateway to Mecca and a city known for its cultural diversity, thanks to its Red Sea coastline and history as a port city. The Corniche is one of Jeddah’s most picturesque attractions, offering miles of waterfront walks, art installations, and parks. One of the standout landmarks is the King Fahd Fountain, the world’s tallest, shooting water over 300 meters into the air.
Jeddah’s old town, Al-Balad, is a UNESCO World Heritage site known for its coral-built houses. The intricate lattice windows and balconies, known as “rawasheen,” showcase traditional Hijazi architecture. Wander through the ancient alleyways and explore bustling markets like Souq Al-Alawi, where traders sell everything from spices and jewelry to textiles and antiques.
For a mix of the old and the new, visit Red Sea Mall for luxury shopping or dine at the city’s many high-end restaurants along the Jeddah Waterfront. Diving and snorkeling enthusiasts should explore the Red Sea’s vibrant coral reefs and marine life, with diving excursions available just outside the city.
AlUla – The Hidden Jewel of Saudi Arabia
AlUla is one of Saudi Arabia’s most fascinating historical and natural landmarks. Located in the northwest of the kingdom, it is known for its stunning desert landscapes and ancient heritage. The city is home to Hegra (Madain Salih), a UNESCO World Heritage site featuring 131 monumental tombs with intricately carved facades, dating back to the Nabataean Kingdom.
The AlUla Old Town offers an immersive walk through ancient ruins, while Elephant Rock is a must-see for visitors, as the natural rock formation resembles a massive elephant. Take a guided tour through Dadan, another archaeological site, and marvel at the historic remains of civilizations long past. AlUla is perfect for travelers seeking off-the-beaten-path adventures and those interested in Saudi Arabia’s pre-Islamic history.
Dammam – Coastal Retreat of the Eastern Province
Dammam, the capital of Saudi Arabia’s Eastern Province, sits along the Arabian Gulf, offering a laid-back coastal atmosphere. The Corniche of Dammam is a family-friendly space with parks, restaurants, and stunning views of the Gulf. For history enthusiasts, the Heritage Village gives insight into the culture and traditions of the region.
Explore the nearby King Fahd Park, one of the largest parks in Saudi Arabia, ideal for picnics, leisure activities, and outdoor gatherings. Half Moon Bay, just outside the city, offers an excellent spot for water sports, with soft sandy beaches ideal for a day of relaxation. Don’t miss out on Dammam’s excellent seafood dining scene, with fresh catches from the Arabian Gulf served in many local restaurants.
United Arab Emirates
Dubai – The City of Superlatives and Luxury
Dubai has established itself as one of the most iconic cities globally, famed for its luxury, towering skyscrapers, and futuristic vision. Start your adventure at the Burj Khalifa, the world’s tallest building, where you can enjoy unparalleled views of the city from the 148th-floor observation deck. The Dubai Mall, one of the largest in the world, is next door, housing hundreds of retail outlets, an aquarium, an indoor ice rink, and a cinema.
For a taste of Dubai’s old-world charm, wander through the Al Fahidi Historical District, where traditional wind-tower houses stand as a reminder of the city’s humble beginnings. Nearby, you can take a traditional abra (water taxi) across Dubai Creek to explore the vibrant Gold and Spice Souks. This offers an authentic experience in bargaining for spices, textiles, and gold.
Beach lovers can unwind at Jumeirah Beach, with its stunning views of the Burj Al Arab, or explore the pristine shores of La Mer and the chic beachfront shops and restaurants. For adventure seekers, head to the desert for a desert safari, which includes dune bashing, camel rides, and dinner under the stars in a traditional Bedouin camp.
Abu Dhabi – Culture Meets Modernity
The UAE’s capital, Abu Dhabi, balances cultural richness with cutting-edge development. Begin your tour with the iconic Sheikh Zayed Grand Mosque, a breathtaking structure combining Islamic architecture and modern design. Its marble-clad walls, adorned with intricate calligraphy and gold details, are a must-see. Just as culturally enriching is the Louvre Abu Dhabi, which hosts a wide array of global artwork, offering a fresh perspective on human civilization.
Nature enthusiasts will enjoy a visit to the Mangrove National Park, where you can kayak through serene waters surrounded by mangrove forests. Saadiyat Island is another top destination, known for its beautiful beaches, luxury resorts, and art galleries. For a more thrilling experience, head to Yas Island, where you’ll find Ferrari World and Yas Waterworld, offering adrenaline-packed fun for the whole family.
In the evening, take a leisurely walk along the Corniche, where you’ll have a panoramic view of the city’s impressive skyline along with easy access to beach cafés and local markets.
Ras Al Khaimah – A Nature Lover’s Paradise
Ras Al Khaimah, located in the northernmost part of the UAE, offers a different experience, emphasizing nature, adventure, and history. This emirate is known for its Jebel Jais, the highest peak in the UAE, where thrill-seekers can enjoy the world’s longest zipline and stunning mountain views. For a more relaxing experience, visit the Al Marjan Island, a man-made archipelago perfect for beach lovers and luxury resort seekers.
History enthusiasts should explore Dhayah Fort, a hilltop fort that offers panoramic views of the surrounding landscape and provides a glimpse into the region’s history. Ras Al Khaimah also boasts beautiful desert landscapes, perfect for safaris and stargazing.
Ras Al Khaimah’s natural beauty and laid-back charm make it an excellent destination for those looking to escape the fast-paced life of the larger UAE cities.
Sharjah – The Cultural Capital
Often called the cultural capital of the UAE, Sharjah offers a quieter, more traditional experience compared to its glitzy neighbors. Start your day at the Sharjah Museum of Islamic Civilization, home to thousands of rare artifacts, including manuscripts, ceramics, and textiles. A stroll through the Heart of Sharjah brings you back in time, with restored buildings that capture the essence of the emirate’s past.
Art lovers should visit the Sharjah Art Foundation, which hosts modern exhibitions and contemporary art installations from regional and international artists. For family-friendly fun, Al Noor Island offers lush gardens and a butterfly house, making it a perfect place for relaxation.
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