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and five-star experiences. This multi-nodal structure reinforces Dubai’ s position as a magnet for international tourism and business. It has become a powerhouse global hub and hotel performance has followed suit.
Like Dubai before it, Saudi Arabia is now emerging as a formidable hospitality market. Once viewed primarily as a destination for business travel, the Kingdom has undergone
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sweeping reforms. Under Vision 2030, Riyadh is being recast as a destination for business, events and leisure, supported by staggering investment across infrastructure and tourism. Riyadh, the capital, now has two notable modern towers— Kingdom Tower, home to a Four Seasons, and Al Faisaliah Tower with a Mandarin Oriental hotel. Prior, other international properties existed
but lacked distinction. Business was the only reason anyone visited: There were no concerts, no cinemas, no major sporting events— nothing that would draw a leisure traveler.
Things have changed. In the past eight years, Saudi Arabia has been on an accelerated path of modernization, growth and diversification away from oil. The amount of investment has been staggering: advancement in architecture, infrastructure, leisure, events, business and even in societal norms— enough to draw global attention and put real competitive pressure on Dubai.
Despite significant progress, leisure tourism in Saudi Arabia still trails Dubai. However, recent developments, such as the introduction of regulated alcohol sales in designated areas, suggest an intentional pivot to broader tourism appeal.
In the realm of regional commerce, Dubai and Riyadh are competing for corporate dominance. By 2017, many global firms, including Apple, PwC, ExxonMobil, Hilton and Marriott International, were operating regional hubs from Dubai. In response, Saudi Arabia introduced mandates requiring regional headquarters to be physically based in the Kingdom— prompting a strategic shift. An ensuing law mandated that companies must have a full regional office in the Kingdom, not just a country branch; things kept changing.
Dubai responded, liberalizing its business laws to remain competitive. In particular, it allowed companies to operate
Sept / Oct 2025 hotelsmag. com 75