The Middle East’s post-pandemic tourism recovery is more than a travel success story, it is becoming one of the most powerful forces shaping real estate growth across the region. In 2024, international arrivals surged 32% above pre-pandemic levels, cementing the region’s position as one of the world’s strongest tourism markets. Today, the sector accounts for around 9% of regional GDP and is projected to expand by an average of 7.7% annually until 2032.

This renewed momentum is driving demand for hospitality-led real estate, from luxury resorts and entertainment destinations to mixed-use communities. In the UAE, growing visitor numbers from Western Europe, South Asia, and an increasing flow from China are influencing investment in both traditional and experience-driven developments. In Saudi Arabia, Vision 2030 is unlocking a wave of large-scale tourism initiatives, supported by the addition of seven cruise ship ports designed to draw more international visitors.

Emerging destinations are making their mark too. Ras Al Khaimah is poised for transformation with the Wynn Al Marjan Island, the UAE’s first licensed gaming venue, set to open in 2027. This landmark project is expected to attract new visitor segments, boost residential sales, and strengthen investor appetite for hospitality ventures. The announcement in 2022 triggered a flurry in development activity with residential stock in Ras Al Khaimah projected to double by the end of 2024, based on the supply from launches up to 2024.

Saudi Arabia’s impressive pipeline of giga-projects is broadening its global appeal, fuelling demand for resort communities, second homes, and mixed-use developments. While the full impact will play out over the next decade, foreign investors are already positioning themselves.

By 2030, the country aims to reach 70 million visitors, making it one of the top seven most-visited nations worldwide. Saudi Arabia’s tourism is underpinned by religious tourism, with increasing pilgrims visiting Makkah for Umrah and Hajj, but Saudi Arabia is also benefitting from increased connectivity and tapping into younger, wealthier travellers who are seeking new and authentic experiences.

The vast majority of Saudi Arabia's hotel pipeline is dedicated to the luxury and upscale segments. This strategic focus is designed to position the kingdom as a world-class luxury destination and attract high-spending international tourists.

Infrastructure upgrades will be a key enabler across the region. In the UAE, the upcoming Etihad Rail passenger network, linking 11 cities across the emirates and planned to connect with Oman in the future, is expected to enhance accessibility and unlock real estate potential in secondary and emerging markets – much like high-speed rail has transformed property values in Europe and Asia. In Saudi Arabia, major airport expansions, new cruise terminals, and enhanced road connectivity are integral to supporting its tourism ambitions and opening new locations for investment.

Developers across the Gulf are adapting to a more diverse buyer base. Western European visitors are often drawn to high-end waterfront properties and winter sun escapes, while travellers from warmer climates gravitate towards culturally rich, experience-led destinations. This is encouraging a broader mix of developments, from ultra-luxury offerings to more accessible resort-style living.

Dubai’s hotel sector illustrates the strength of the market. The city is ranked among the top four globally for planned hotel openings in 2025, alongside Shanghai, New York, and London. Standout projects include Ciel in Dubai Marina, set to be the world’s tallest hotel, and the superyacht-inspired Jumeirah Marsa Al Arab. Occupancy rates remain high, and average daily rates rose by 2.6% in 2024 to $142 per night, signalling sustained investor confidence. Notably, Dubai is also the most active market globally for branded residences.

With government-backed diversification plans, robust tourism pipelines, and transformative infrastructure projects, the Middle East is entering a decade where tourism and real estate will be more closely linked than ever. For investors and developers, the opportunity lies in aligning with evolving travel trends and the region’s ambitious vision for the future.