Saudi Arabia, with its rich history and diverse culture, is swiftly establishing itself as a top global tourist destination.
Aligned with Saudi Vision 2030, the government has prioritized the growth of the tourism sector, leading to the creation of the Tourism Development Fund (TDF) in 2020 by royal decree.
The TDF serves as a strategic partner in advancing the sector, supporting Saudi Arabia’s aspirations to become a global tourism leader.
Operating under the National Development Fund, TDF aims to attract foreign investment to key destinations in the Kingdom while providing support for large-scale projects.
By collaborating with public and private sector financiers, the Fund strengthens the national tourism ecosystem and promotes sustainable development.
A key objective for the Kingdom’s tourism industry is to ensure it accounts for 10% of the national Gross Domestic Product (GDP) by 2030, while also generating approximately one million new jobs across various tourism-related fields.
With a focus on the broader goals of Saudi Vision 2030, the Kingdom seeks to leverage its rich heritage, stunning landscapes, and mega projects to offer unforgettable experiences.
By 2030, Saudi Arabia aims to host 30 million pilgrims every year, positioning itself as the premier destination for Muslim religious tourism globally.
SAR 40 Billion in Projects Supported by the Tourism Development Fund
Qusai Al-Fakhri, CEO of the Tourism Development Fund, emphasized the Fund’s crucial role in advancing the sector by offering business solutions and financing for large, medium, and small tourism initiatives.
Since its inception, TDF has enabled 137 tourism projects, valued at around SAR 40 billion, enhancing tourism infrastructure across various regions in the Kingdom.
The Fund aims to enhance competitiveness, promote domestic investments, and attract international capital to diversify the economy beyond oil.
Al-Fakhri also announced a Memorandum of Understanding with Ennismore to create a SAR 1.5 billion investment fund.
This partnership will introduce 12 Ennismore lifestyle hotels to Saudi Arabia, contributing approximately 2,000 hotel rooms and further improving tourism infrastructure.
Divehood: A Digital Platform Transforming Underwater Tourism
A notable innovation backed by the Tourism Development Fund is Divehood, a digital platform that connects divers with local and international diving service providers.
Designed to enhance underwater exploration experiences, Divehood exemplifies Saudi Arabia’s commitment to diversifying its tourism offerings.
Haitham Khayat, the platform’s founder, credited TDF for helping to realize Divehood’s vision. “The Tourism Development Fund provided the funding and support that made it possible to achieve our vision for Divehood in an unprecedented timeframe,” he noted.
Tourism Growth in Saudi Arabia Surges in 2024
Saudi Arabia’s tourism sector has experienced significant growth, with the Kingdom leading G20 countries in international tourist arrivals and revenue growth during the first seven months of 2024.
According to the UN World Tourism Barometer, Saudi Arabia recorded a 73% increase in tourist arrivals and a 207% jump in international tourism revenue compared to 2019.
The International Monetary Fund’s September 2024 report following its “2024 Article 4 Consultations” praised the tourism sector for contributing 11.5% to the GDP in 2023. The report projects this contribution will rise to 16% by 2034, underscoring the effectiveness of the Kingdom’s tourism strategy.
Government Commitment to Sustainable Development
In a recent preliminary statement for the 2025 fiscal year, the Ministry of Finance announced projected total expenditures of SAR 1,285 billion, with estimated revenues of SAR 1,184 billion.
Finance Minister Mohammed Aljadaan highlighted the government’s commitment to executing strategic projects aimed at sustainable development, particularly within the tourism sector, seen as a vital component of Saudi Arabia’s economic diversification efforts under Vision 2030.
