Close your eyes and picture a bustling Saudi Arabian marketplace full of the smell of spices, the sound of voices carrying on conversations, and beautiful architecture, a blend of ancient and modern. This is a new face of Saudi Arabia. Cultural tourism is breathing life into its cities and towns, suddenly not only the economy but also the real estate market. For the last few years, Saudi Arabia has been dedicating itself to establishing itself as a leader in global culture and tourism. Aspiring to prove to the world that it’s more than just oil and hot weather, the Kingdom has not only opened its doors to international tourists but is considering cultural tourism as a catalyst for real estate growth under its Vision 2030 plan. This is about more than an adjustment of policy it’s a change that is altering how, where, and where people live, work, and invest.
New Era of Tourism
In 2019 Saudi committed a historic leap by undertaking measures aimed at opening its doors wider to international tourists in addition to the religious pilgrimages of Hajj and Umrah. Visitors from 49 countries, including the US and the UK, for the first time, could apply for tourist visas processed in under seven minutes. This went beyond change in policy, this was Saudi Arabia saying that we are open for business; we are welcoming to tourists; and we want to share our amazing heritage, amazing culture, and boundless possibilities. The excitement was palpable.
The Kingdom will then only add the schedule of its international Jeddah Grand Prix, and its modern attractions, such as the Riyadh Season, where it only took a few decades for the Kingdom to begin carving out its own place as a global destination from the ancient tombs of Mada’in Salih, often referred to as the ‘Petra of Saudi Arabia.’ The interest in Saudi Arabia’s distinctive offerings is evident, with inbound tourism spending forecast to hit $25.3 billion in 2025. Saudi Arabia’s Minister of Tourism Ahmed Al-Khateeb said during December's 2021 Budget Forum that the Kingdom is seeking to attract new investments worth SR220 billion ($58 billion) in tourism by 2023, and more than SR500 billion by the end of the decade. Saudi travelers spent $22 billion traveling abroad last year.
Excitingly, the ambition is bold. The impact of tourism on GDP is expected to reach 10% by 2030, a sharp rise relative to where this lies at present. Backing this vision is an extraordinary commitment: the government spent over $7 trillion on building world-class tourism infrastructure and iconic real estate projects. This isn’t for visitors alone; it’s about making Saudi Arabia a hub of culture and connection and a beacon of innovation. At the epicenter of this transformation is Vision 2030 — Saudi Arabia’s plan to diversify its economy and provide our people with a dynamic future. In central, tourism plays a central role, promising to create thousands of jobs besides being a platform for cultural exchange. A redefinition of the future: The Kingdom wants to welcome 50 million foreign tourists annually. It is already building momentum. Tourism was reported to have rebounded strongly last year, with international events garnering worldwide eyeballs and hospitality revenues on the upswing. This is more than economic change; it is cultural change.
Cultural Renaissance
Saudi Arabia has a further commitment to cultural tourism: For example, AlUla, the historic oasis, and Diriyah Gate, the birthplace of the Saudi state. No, tourism isn't the only thing they're about; these projects are essentially about the creation of entire ecosystems of hotels, residential areas as well as retail buildings. The connection between cultural tourism and real estate is clear: An increasing number of people staying, visiting, and taking part in Saudi Arabia’s rich heritage ultimately means exponentially increased demand for infrastructure and real estate.
Jewel in the Desert is an example of how in AlUla cultural tourism is influencing real estate development. Over $20 billion was from the RCU which spent it on developing the area as a global cultural destination. More than 250,000 visitors came to AlUla in 2022 to see its ancient tombs and rock formations, or to sample events such as the cultural festival Winter at Tantora. This is being fuelled by demand for hotels, resorts, and even long-term residential developments. The RCU has collaborated with luxury brands such as Aman Resorts to make high-end accommodation that fulfills this need, and with sustainable accommodations for locals. By 2030, the joint vision also envisions two million visitors every year landing in AlUla and generating over $32 billion in direct and indirect economic impact, in addition to developing real estate in the region.
Outside Riyadh, Diriyah Gate is another shining example. The project is part of the $50 billion investment that is transforming the old part of the city into what they hope will become a cultural and residential hotspot. Luxury hotels, retail spaces, and more than 20,000 new homes will also be part of it. The Diriyah Gate project was never just about preservation; it’s about a liveable city, living with residents and tourists. More than 1.5 million people visited Diriyah in 2023, as it pulls over meticulously stacked cultural experiences. This overcrowding has necessitated that real estate developers push for the development of mixed-use spaces in Diriyah so that it becomes a model site for living and tourism that is sustainable.
Hospitality and Sustainability
Saudi Arabia is experiencing an unprecedented rise in the hospitality sector. According to CBRE Group's International Investment Program in March 2021, Saudi's tourism revenues saw “a significant rebound” driven by events such as Riyadh Season and the Jeddah Grand Prix. It signifies the Kingdom’s commitment to providing enough hotel rooms for both domestic and international visitors; by 2030 hotel room supply is forecast to surge by 67 percent. In Riyadh, the world’s largest vertical farm is now redefining what it means to integrate sustainability into real estate. This facility produces fresh, low-carbon leafy vegetables locally, reducing the need for import and paving the way for new sustainable tourism infrastructure.
Saudi Arabia’s pledge to hit net zero carbon emissions by 2060 is influencing its real estate market. From energy-efficient building materials to sustainable water management systems, Giga Projects and other developments are also incorporating strategies of environment-friendly practice. Take, for example, The Line in NEOM, which hopes to be 100% powered by renewable energy and deliver zero carbon emissions, a global benchmark for living sustainably in cities. The notion of vertical and hydroponic farming is also being used to tackle food security issues as a resource saver.
Challenges
- The most valuable resource for Saudi Arabia is culture because it is diverse and beautiful but fragile. The issue of the preservation of historical sites with the provision of facilities for the modern-day traveler is a complex one.
- Overdevelopment is the biggest danger that can lead to the destruction of the very growing attracts that societies have in various areas.
- The Diriyah Gate Development Authority is working with UNESCO to ensure that the physical characteristics of the area are not interfered with in any way.
- Infrastructure Strain has been a challenge to the infrastructure of Saudi Arabia as cultural tourism has continued to rise. At the moment, Saudi Arabia attracted 93.5 million domestic and international tourists in 2022 and aims to get 100 million by 2030. This need means a lot of investment in the transport and social sectors.
- Therefore, to cater to this need, the government has provided $147 billion to be used in infrastructure grants under Vision 2030. One such project is the Riyadh Metro which is expected to begin its operations in 2024 in a bid to reduce traffic congestion and to connect all the cultural and residential areas.
- Although property prices keep on rising, the public is slowly getting concerned about how the locals will be able to purchase these. According to JLL MENA’s report of 2023, Saudi Arabia has new residential projects of which only 20% are affordable housing.
Conclusion
Saudi Arabia is telling an inspiring story of transformation. While cultural tourism is expanding the economy and real estate market, the way the Kingdom is perceived is not far behind. Saudi Arabia is sharing its history, its soul, and its future. From the ancient tombs of AlUla to the bustling streets of Diriyah Gate. But Saudi Arabia showed that it can be done. And the commitment is there, with billions of dollars plowed into building the tourism infrastructure, heart-stopping new developments like NEOM and The Line, and a determined pledge to make this the country for innovation and culture. With Vision 2030, Saudi Arabia is showing how it’s more than oil and sands—it’s about smart and stylish people, great hospitality, and a future built on respect for the past.
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