Business Tourism in Saudi Arabia and How Riyadh and Jeddah Became a Global Hub for Delegations

Business tourism in Saudi Arabia, particularly in the cities of Riyadh and Jeddah, has emerged as a global hub for international delegations, driven by the Kingdom’s ambitious Vision 2030 initiative. This strategic plan aims to diversify the economy, reduce dependence on oil, and solidify the Kingdom’s position as a leading destination for business events, conferences, and exhibitions. The business tourism sector is experiencing remarkable growth, with revenues projected to reach approximately US$5.37 billion by 2029, making the Kingdom a major player in the Middle East’s meetings, incentives, conferences, and exhibitions (MICE) market.

Jeddah has long served as a cultural and economic gateway, especially for Muslim pilgrims traveling to Mecca and Medina, laying a strong foundation for tourism in the region. However, the recent focus on business tourism reflects Saudi Arabia’s efforts to enhance its global standing through massive investments in infrastructure, hospitality, and entertainment projects.

The expansion of conference centers and modern transportation networks, along with initiatives to host high-profile international events, underscores the Kingdom’s commitment to attracting global delegations.

Historical Background

Saudi Arabia’s journey to becoming a leading global business tourism destination has been shaped by its rich cultural heritage and strategic initiatives to diversify its economy. The Kingdom, particularly the cities of Riyadh and Jeddah, has long been renowned for its unique blend of tradition and modernity, making it an attractive destination for international delegations and events.

Early Development of Tourism

Jeddah has long served as a gateway for millions of Muslim pilgrims traveling to Mecca and Medina for Hajj and Umrah. This religious tourism has established Jeddah as a vital transit point and cultural hub, contributing significantly to its economy and tourism infrastructure.

As Saudi Arabia embarked on its modernization process in the late 20th century, concerted efforts were made to enhance Jeddah’s appeal beyond religious tourism, expanding its appeal to include leisure and business tourism.

Vision 2030 and the Tourism Transformation

The launch of Saudi Arabia’s Vision 2030 in 2016 marked a pivotal moment in the country’s tourism journey. The Vision aims to transform the Kingdom into a leading global tourism hub by diversifying its economy and attracting international visitors. This strategy includes massive investments exceeding US$200 billion in diverse tourism projects, such as the development of luxury resorts, historical landmarks, and state-of-the-art infrastructure.

As part of these efforts, Jeddah’s Old Town, a UNESCO World Heritage Site, is undergoing a comprehensive restoration, transforming it into a center for heritage tourism that will attract culture enthusiasts.

Growth of the Business Tourism Sector

Saudi Arabia’s business tourism sector has witnessed remarkable growth, particularly following the easing of COVID-19 restrictions. The Kingdom has become the most dynamic destination in the Middle East for meetings, incentives, conferences, and exhibitions (MICE) events, with the sector valued at approximately US$2.59 billion and projected to reach US$5.37 billion by 2029.

This growth is supported by Saudi Arabia’s commitment to developing world-class infrastructure, as well as government initiatives aimed at promoting international events, making cities like Riyadh and Jeddah attractive destinations for global delegations and conferences.

As Saudi Arabia continues to embrace innovative approaches to tourism, its strategic location at the heart of the Middle East makes it a gateway to emerging markets in Europe, Asia, and Africa, further solidifying its position as a global hub for business tourism.

Economic Impact

The economic impact of business tourism in Saudi Arabia, particularly in cities like Riyadh and Jeddah, is significant. The tourism sector has witnessed remarkable growth and transformation in recent years. The Kingdom’s Vision 2030 initiative is a key driver of this development, aiming to diversify the economy, reduce its traditional reliance on oil, and promote tourism as a vital contributor to GDP.

Tourism Revenue Growth

In 2023, Saudi Arabia welcomed 4.2 million tourists, contributing approximately US$36 billion to tourism revenue. The sector is poised for significant growth, with its contribution to GDP projected to increase from 5% to 10% by 2030.

With international tourist arrivals up 56% compared to pre-pandemic levels in 2019, total tourism spending in 2022 reached approximately SAR 185 billion (US$49.3 billion), reflecting a substantial year-on-year increase of 93%.

Non-Oil Economic Diversification

Saudi Arabia is actively diversifying its economy, with non-oil activities contributing over 4% to GDP growth over the past three years.

The government’s efforts to privatize key sectors, such as healthcare, education, and transportation, along with initiatives to support small and medium-sized enterprises (SMEs), have laid a solid foundation for a thriving business tourism sector.

The Public Investment Fund (PIF) has played a pivotal role in this transformation, with its assets under management expected to reach US$925 billion by the end of 2024, further bolstering investments in the local economy.

Employment and Job Creation

The business tourism sector is projected to become one of the largest job creators in the Kingdom, aiming to employ one million Saudis by 2030. By increasing tourism’s contribution to GDP, this sector is expected to account for 10% of total employment, significantly contributing to workforce development in the hospitality, transportation, and events management sectors.

Infrastructure Development

Massive investments in infrastructure support this growth, enhancing projects such as the Riyadh Metro and airport expansions are connecting the Kingdom and facilitating the arrival of international delegations. These infrastructure developments not only create jobs but also improve the ease of doing business in Saudi Arabia.

Global Strategic Location

Saudi Arabia’s strategic location as a gateway to three continents (Europe, Asia, and Africa) provides a unique advantage for business tourism, making it an attractive destination for international conferences and events. This location, coupled with the Kingdom’s commitment to enhancing air connectivity and participating in global initiatives such as the Belt and Road Initiative, reinforces its role as a regional leader in business tourism.

These efforts are positioning Saudi Arabia to become a global hub for business tourism, attracting international delegations and events while simultaneously fostering significant economic growth and diversification.

Major Projects and Developments

Riyadh and Jeddah are undergoing a major transformation in their tourism infrastructure, aiming to solidify their positions as global centers for business tourism. The recent Cityscape Global 2025 exhibition in Riyadh facilitated the signing of 14 investment and development agreements worth over SAR 5 billion, targeting the entertainment, retail, and hospitality sectors in the Eastern Province.

These agreements include the development of new theme parks, the region’s first shopping mall, and a unique tourist destination in Half Moon Bay, which will feature more than 100 international brands and diverse entertainment options, enhancing the region’s appeal to both domestic and international tourists.

Hospitality Infrastructure

The hospitality sector in Saudi Arabia is experiencing significant growth thanks to substantial infrastructure investments aimed at enhancing the overall visitor experience. For example, the expansion of King Salman International Airport in Riyadh, expected to handle over 100 million passengers annually by 2030, along with the development of King Abdulaziz International Airport in Jeddah, aims to improve accessibility for business travelers. The establishment of specialized airports, such as the Red Sea International Airport and the planned NEOM International Airport, is also expected to support tourism growth in key regions.

Convention Centers

Riyadh boasts several modern and state-of-the-art convention centers that cater to the needs of business tourism. The Riyadh International Convention and Exhibition Center, spanning over 157,627 square feet, has hosted more than 200 successful exhibitions and trade events, cementing its position as a leading destination for international conferences.

The Sofitel Riyadh International Convention Hotel, with its fifteen multi-purpose halls and advanced audiovisual technology, provides a luxurious environment for both business and social events, further enhancing the city’s appeal for high-profile gatherings.

Cultural and Entertainment Attractions

In addition to business facilities, Riyadh and Jeddah offer a diverse range of cultural and entertainment attractions that enrich the visitor experience. Major projects, such as King Salman Park and Riyadh Sports Street, have been designed to create new recreational spaces that attract tourists and support nearby hotels.

Furthermore, the presence of numerous museums, heritage sites, and nature parks in the Northern Borders and Asir regions contributes to a wider range of attractions available to business travelers, allowing them to extend their visits to enjoy leisure activities as well.

Government Initiatives and Support

The Saudi Arabian government has implemented a range of initiatives to promote business tourism, particularly in major cities such as Riyadh and Jeddah. These initiatives aim to create a conducive environment for hosting international delegations and events, in line with the broader objectives outlined in Vision 2030.

Vision 2030 and Economic Diversification

Vision 2030 provides a pivotal framework for the Kingdom’s economic transformation, focusing on travel, tourism, and entertainment as strategic priorities for diversification and job creation. By increasing tourism’s contribution to GDP from 3% to 10% by 2030, the government seeks to attract millions of international visitors and establish Saudi Arabia as a leading global tourism destination.

As part of these efforts, the government is enhancing infrastructure, developing tourism facilities, and offering tax incentives in special economic zones to stimulate investment in the hospitality sector.

Enhancing Infrastructure and Facilities

To support the growth of business tourism, significant investments are being made in infrastructure and facilities. Projects are currently underway to develop major conference centers in Riyadh and Jeddah to host international summits and exhibitions. The government is also paying special attention to creating recreational areas, such as King Salman Park, which will attract visitors and support nearby hotels.

In addition, priority is being given to developing transportation systems, including airports and public transport, to improve accessibility for tourist delegations traveling to the Kingdom.

Facilitating the Hosting of Delegations

Programs such as the Arab League have been established to streamline procedures for hosting foreign delegations, facilitate productive visits, and ensure the achievement of international partners’ objectives. This initiative focuses on tailored visits, which include customized business meetings, networking opportunities, and cultural events, thus strengthening strategic relationships.

Furthermore, the government is working to improve tourism services, from ride-sharing applications to training tourist police, enhancing the visitor experience, and encouraging repeat visits.

Public-Private Partnerships

Public-private partnerships play a vital role in realizing the Kingdom’s tourism ambitions. The government’s strategy includes integrating private sector expertise into various tourism-related projects, ensuring operational efficiency and innovative service delivery.

Through collaboration with private sector developers, the government can make state assets available to the hospitality sector and privatize certain government services, contributing to a more vibrant, economically competitive tourism environment.

Major Events and Conferences

The Kingdom of Saudi Arabia, particularly the cities of Riyadh and Jeddah, has emerged as a global hub for business tourism, attracting numerous international conferences and events. Strategic initiatives undertaken by the Kingdom to enhance the Meetings, Incentives, Conferences, and Exhibitions (MICE) sector have significantly contributed to this transformation.

The 28th World Investment Conference

The 28th World Investment Conference (WIC) was one of the most prominent events hosted by the Kingdom of Saudi Arabia, attracting over 6,000 participants from more than 120 countries, including 27 ministers and 20 ambassadors.

The conference featured 106 speakers and 33 sessions, providing a platform for investment leaders to discuss pressing global issues and strategies. Notably, the conference included the first-ever Ministerial and Ambassadorial Roundtables, underscoring its importance in fostering high-level dialogue on promoting investment and international cooperation.

Global Health Exhibition

Alongside investment-focused events, Saudi Arabia hosted the Global Health Exhibition, which highlighted the pivotal role of public health management during mass gatherings. The event brought together experts to share best practices in managing large-scale events, such as Hajj and Umrah, emphasizing the need for preparedness and coordination in health initiatives.

Diverse Conference Topics

The Kingdom’s conference program covers a wide range of topics, from healthcare and wellness to business and technology innovations. The calendar features a diverse mix of exhibitions and forums catering to various sectors, reflecting Saudi Arabia’s commitment to social and economic responsibility.

Investments and Strategic Partnerships

Saudi Arabia’s position as a member of the G20 and its active participation in global economic dialogues enhance its appeal as a conference host. The Kingdom is expanding its free trade agreements and establishing strategic partnerships with countries in Asia, the United States, and the European Union, further solidifying its position as a business hub.

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