UK-MENAT trade: tapping into the tourism boom

Today, almost every country in the region is planning to make significant investments in their tourism sectors. And this is creating multiple opportunities for UK corporates and investors. Everything from construction to hotel management to the organisation of international sporting events, there’s a wealth of potential deals on the horizon. Here’s the state of play in each country:

Egypt:

The country’s tourism sector is booming, achieving record revenues of over USD14 billion in 2024, a 7.8% year-on-year increase¹, with recent foreign direct investment (FDI) inflows of $50 billion providing a significant boost to tourism infrastructure².

Tourism development is closely aligned with Egypt’s Vision 2030 goals, which focus on sustainability, economic growth and attracting foreign investment. Flagship tourist projects include the South Med development, a $20.74 billion initiative to transform Egypt’s North Coast into a global tourist destination³.

There are substantial opportunities for UK corporates to help Egypt meet its ambitious tourism targets. Prospects are likely to be enhanced by discussions around bilateral co-operation on the development and operation of Egyptian airports and the opening of a Liverpool to Luxor commercial flight route⁴.

Saudi Arabia:

The Kingdom has ambitions to become a global tourism hub. The National Tourism Strategy has set a high bar, with a goal of tourism contributing around 10% of GDP by 2030⁵ . According to government estimates, as of June last year, the country has 255 tourism infrastructure projects worth $1.7 trillion aligning with its 2030 goals⁶ and is seeking $80 billion in private investment.

Funds are being directed at giga projects such as the £63 billion Diriyah Gate, showcasing 300 years of Saudi history within a UNESCO World Heritage site, that is seeking additional foreign investment for hotels and other real estate developments⁸.

These giga projects also offer myriad openings in ancillary services, with current opportunities advertised by the Kingdom’s Public Investment Fund (PIF) including entertainment maintenance and ride assessment, event equipment, and cruise food catering services⁹.

Saudi Arabia’s significant push into sport is also a major focus, with investment flowing into boxing¹⁰, golf¹¹, football¹² and Formula 1¹³. This is opening horizons for corporate investment and partnerships that will elevate the Kingdom’s international sporting profile.

Oman:

Last year, the Ministry of Heritage and Tourism announced a comprehensive plan to invest over $31 billion in tourism by 2040¹⁴. Sustainability and eco-friendly developments are at the heart of the strategy, an approach the country hopes will carve out a niche that will attract high-end, environmentally conscious travellers¹⁵.The Yiti Sustainable Tourism City¹⁶ is just one of the high-profile projects being overseen by Oman Tourism Development Company (Omran).

To support the expansion of tourism, Oman is also investing heavily in infrastructure development. The Ministry of Heritage and Tourism has allocated $5.9 billion to support tourism-related projects¹⁷. Corporates with experience of sustainable and eco-friendly construction and travel services are well-placed to tap into this market.

UAE:

Tourism is big business here and set to grow further. For example, Abu Dhabi’s Tourism Strategy plans to boost visitor numbers to 39.3 million and create 178,000 new jobs by 2030¹⁸. Key enablers of this exponential growth are the two international carriers, Emirates and Etihad Airways, as well as Dubai International Airport – the world’s busiest hub¹⁹.

Already well-established as a luxury travel destination Dubai is looking to develop more rural areas, with around $106 million earmarked for the development of the Saih Al Salam scenic route, linking five new leisure and hospitality hubs²⁰ funded by public private partnerships.

As with other MENAT countries, sustainability is a growth pillar, with Dubai introducing a Sustainable Tourism Stamp for hotels committed to sustainability and eco-friendly practices²¹.

Türkiye:

With 551 blue flag awarded beaches in 2023, proximity to major markets and excellent transport links, it’s no wonder that tourism is a mainstay of the Turkish economy – accounting for 12% of GDP²².

The country ranks as the fourth most popular tourist destination²³ in the world and has ambitions to expand further. Turkish Airlines is adding 25 cities to its global network, with the flagship Istanbul Airport planning for more runways and additional terminals that will boost annual capacity to 150-200 million passengers by 2027²⁴.

With tourism growing at rate that outstrips its bed capacity, investments in hotel and resort development are increasing. In parallel, Türkiye is looking to diversify its tourism offering, encouraging year-round tourism in less well-known tourist areas, such as Eastern and Southeastern Anatolia.

Bahrain:

Tourism in Bahrain has a strong local focus, largely concentrated on the ~300 million people within two hours’ flying time and within the Gulf Cooperation Council (GCC). Currently, the sector supports up to a million visitors each month²⁵.

More than $10 billion has been committed to investment in tourism infrastructure projects²⁶, which includes new hotels and museums. The Kingdom is keen to attract foreign investment in three key tourism subsectors: food service, retail and leisure²⁷.

Qatar:

Tourism is a key part of its Vision 2030 strategy for economic diversification and the country has invested significantly in infrastructure. Major tourist developments include Simaisma, a new cultural landmark covering 8 square kilometres. This project will include a 7 kilometre waterfront, luxury resorts, a theme park, an 18-hole golf course, residential villas, a yacht club, a marina, and dining and shopping options²⁸.

Qatar’s World Cup legacy remains crucial to shaping future tourism objectives. The country’s state-of-the-art stadiums are designed with cooling systems for year-round events. These offer ongoing sporting and cultural opportunities for UK businesses and investors.

The UK remains a popular global tourism destination, with a projected 38.7 million visitors spending approximately £32.5 billion in 2024²⁹. An estimated 1.3 million of those were visitors from the GCC³⁰ and it is growing in popularity.

There are multiple investment and export opportunities for MENAT businesses in a sector rebounding strongly post-COVID. Investment in sport has been a key driver with investors from Abu Dhabi, Saudi Arabia, and Turkey purchasing high profile English football clubs, both of which has seen significant further investments in the local infrastructure and economy, such as the May 2024, £3 billion Saudi investment in the Northeast of England³¹. Further strengthening trade ties with Saudi Arabia, are two cultural collaborations with VisitBritain and the Saudi Tourism Authority signing a Declaration of Intent to collaborate on tourism development between the two nations.

Hospitality remains a prime area of focus for MENAT investors in the UK, especially luxury hotels. The Ritz, the Savoy, and the Shangri-La Hotel in the Shard are all owned by Qatari investors³², while Saudi Arabia acquired a 49% stake in Rocco Forte Hotels³³. Indeed, in 2022 the UK hotel sector received 65% of the total Middle Eastern private capital invested into the country for that year³⁴.

Whether it is the infrastructure underpinning it or the cultural events that will attract the next generation, the tourism sector is creating a wealth of trade opportunities for UK and MENAT corporates alike.