Middle East’s $1.9 trillion hospitality sector led by KSA, UAE, and Egypt
Middle East's $1.9 trillion hospitality sector led by KSA, UAE, and Egypt Yahoo Finance
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Hospitality and Residential Projects in the Middle East
A report released by global independent real estate consultants Knight Frank reveals that hospitality and residential projects worth $1.9 trillion are currently under development in the Middle East. The majority of these investments, accounting for 90% ($1.7 trillion) of the total, are led by Saudi Arabia, United Arab Emirates, and Egypt.
Key Findings:
- Saudi Arabia (KSA) has the highest project investment value in the region, with $1.2 trillion worth of developments in the pipeline.
- The United Arab Emirates and Egypt follow closely with investments valued at $300 billion and $200 billion respectively.
- The Middle East aims to reach 160 million annual tourists by 2030.
Turab Saleem, Partner and Head of Hospitality, Tourism and Leisure – MENA at Knight Frank, stated that the Middle East was the first region globally to make a complete business recovery after the pandemic. He emphasized that while many parts of the world still face challenges in returning to normality, this region is set to surpass pre-Covid levels in terms of hospitality and tourism-related revenue and employment.
Sustainable Development Goals (SDGs) and Growth:
The Middle East’s travel and tourism sector has witnessed significant growth, with a 46.9% increase in its contribution to GDP in 2023. This growth is driven by a 14.5% increase in the number of jobs supported by the sector, resulting in a more than $107 billion increase in its overall contribution to GDP and creating 0.9 million new jobs.
Saleem also highlighted that new trends are emerging due to the influx of new hospitality and tourism-related projects in the region. These trends include:
- Simplified visa processes
- Aggressive marketing campaigns
- Green initiatives
- Innovation and technology
- Increased connectivity with new players in the airline sector
- Personalized guest interaction
- A booming holistic health and wellbeing industry
Despite global concerns such as high inflation, rising interest rates, and fears of recession, there is a strong appetite for the hospitality asset class in Dubai and Ras Al Khaimah from regional and international investors. James Wrenn, Executive Director and Head of Capital Markets, MENA at Colliers, noted that the strong operating performance last year and the continued enhancement of the UAE as a top-tier international tourism destination contribute to this demand.
Future Hospitality Summit (FHS)
In line with this development, a significant volume of hospitality-related transactions are currently at an advanced stage of negotiation, with high-profile properties expected to change hands in the coming months. The Future Hospitality Summit (FHS) will take place in Abu Dhabi from 25-27 September 2023, further spotlighting these investment opportunities in the region’s tourism sector.
This article was generated with the support of AI and reviewed by an editor. For more information, see our T&C.
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SDGs, Targets, and Indicators in the Article
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 8: Decent Work and Economic Growth
- SDG 9: Industry, Innovation, and Infrastructure
- SDG 12: Responsible Consumption and Production
- SDG 13: Climate Action
- SDG 17: Partnerships for the Goals
2. What specific targets under those SDGs can be identified based on the article’s content?
- SDG 8.9: By 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products.
- SDG 9.1: Develop quality, reliable, sustainable, and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being.
- SDG 12.2: By 2030, achieve the sustainable management and efficient use of natural resources.
- SDG 13.2: Integrate climate change measures into national policies, strategies, and planning.
- SDG 17.17: Encourage and promote effective public, public-private, and civil society partnerships, building on the experience and resourcing strategies of partnerships.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
- Number of annual tourists by 2030 (indicator for SDG 8.9)
- Value of hospitality and residential projects under development (indicator for SDG 9.1)
- Contribution of the travel and tourism sector to GDP (indicator for SDG 12.2)
- Increase in the number of jobs supported by the travel and tourism sector (indicator for SDG 12.2)
- Integration of climate change measures into policies and planning (indicator for SDG 13.2)
- Number of high-profile hospitality-related transactions (indicator for SDG 17.17)
SDGs, Targets, and Indicators Table
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 8: Decent Work and Economic Growth | Target 8.9: By 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products. | Number of annual tourists by 2030 |
| SDG 9: Industry, Innovation, and Infrastructure | Target 9.1: Develop quality, reliable, sustainable, and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being. | Value of hospitality and residential projects under development |
| SDG 12: Responsible Consumption and Production | Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources. | Contribution of the travel and tourism sector to GDP Increase in the number of jobs supported by the travel and tourism sector |
| SDG 13: Climate Action | Target 13.2: Integrate climate change measures into national policies, strategies, and planning. | Integration of climate change measures into policies and planning |
| SDG 17: Partnerships for the Goals | Target 17.17: Encourage and promote effective public, public-private, and civil society partnerships, building on the experience and resourcing strategies of partnerships. | Number of high-profile hospitality-related transactions |
Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.
Source: finance.yahoo.com
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