Report: Over $23bn in hotel construction contracts to be awarded across MENA by 2023
Saudi Arabia is tipped as leading the future hotel pipeline with some $9bn worth of contracts to be awarded
Over $23bn worth of hotel construction contracts are scheduled to be awarded in the Middle East and North Africa (MENA) between now and 2023, the third annual AHIC Hotel Investment Forecast stated. According to research conducted in Q4 2019, the hotel development sector will be most active in Saudi Arabia, the UAE, Oman and Egypt.
Saudi Arabia is billed as the leading future market, with just under $9bn worth of projects planned to be awarded over the next four years. The demand stems from the Kingdom’s push into tourism and the opening of its cultural heritage and Red Sea coastline, which are key components of its 2030 Vision.
The UAE is said to sit in second place, with $7.6bn worth of hotel construction contracts to be awarded, while Oman has hotel developments worth just over $2bn in the pipeline. Egypt meanwhile is forecasted to have $1.9bn worth of projects set to be awarded by 2023.
The levels of investment revealed by the AHIC Hotel Investment Forecast over the next four years are said to be a testament to an incredibly buoyant market.
“The AHIC Hotel Investment Forecast is an incredibly valuable piece of research that clearly demonstrates that the Middle East still has so much to offer when it comes to future hotel expansion and investment. We’re especially excited to see markets such as Oman and Egypt, which offer incredibly rich and diverse tourism landscapes, return to the forefront of development in the region,” said Jonathan Worsley, chairman of Bench Events and founder of AHIC.
Worsley added, “The ever-evolving hotel management models, brands and products coming to the region will be discussed at AHIC 2020 under the theme, ‘Transform Tomorrow’, which will explore the many different ways hotel owners and operators alike are adapting their businesses to compete in the future.”
