In a new testament to the success of the national transformation strategies, the tourism sector in the Kingdom of Saudi Arabia is poised to achieve a historic leap, as initial estimates issued by the Ministry of Tourism indicate that total tourism spending will reach approximately 300 billion riyals during 2025, achieving a growth rate of 6% compared to 2024. This figure is not merely a statistical achievement, but reflects the depth of the transformation that the sector is witnessing and its growing contribution as one of the main pillars of the national economy.

General context: Vision 2030 as an engine for transformation

This rapid growth is one of the most significant outcomes of Saudi Arabia’s Vision 2030, which has placed the tourism sector at the heart of its plans to diversify income sources and reduce dependence on oil. Since the Vision’s launch, the Kingdom has embarked on a comprehensive transformation journey, a key milestone of which was the introduction of the electronic tourist visa in 2019, opening the Kingdom’s doors to visitors from around the world. This was accompanied by the establishment of a supportive regulatory and legislative infrastructure aimed at facilitating investment and improving the tourism business environment, attracting substantial local and international investments to develop world-class destinations and resorts.

The importance of the event and its expected impact

Reaching this level of tourism spending carries significant economic, social, and cultural dimensions. Domestically, this spending translates into the creation of hundreds of thousands of direct and indirect job opportunities for Saudi youth, supports the growth of small and medium-sized enterprises (SMEs) that form the backbone of the hospitality and services sector, and fosters the development of local communities in various tourist destinations. Regionally, this record performance solidifies Saudi Arabia's position as a leading tourism powerhouse in the Middle East, creating a healthy competitive dynamic and contributing to the integration of tourism offerings across the region. Internationally, this success helps to change the stereotypical image of the Kingdom, highlighting it as a global destination rich in cultural, natural, and historical diversity, capable of attracting a wide range of tourists, from adventure and nature enthusiasts to those interested in culture, history, and entertainment.

Drivers of sustainable growth

This achievement was not a coincidence, but rather the result of diligent work on several parallel fronts. Alongside regulatory reforms, the Kingdom invested in developing major tourism projects such as NEOM, the Red Sea Project, Qiddiya, and AlUla, which offer unique and innovative tourism experiences. The tourism product was also diversified to include hosting major international events in sports, entertainment, and culture throughout the year, such as Riyadh Season and Formula 1 races. These efforts are complemented by global promotional campaigns and initiatives to develop human capital, ensuring an exceptional tourism experience befitting the Kingdom's stature and future aspirations, which aim to increase the sector's contribution to GDP to 10% by 2030.

The Riyadh Infrastructure Projects Center announced a crucial regulatory step that will reshape the urban landscape of the capital, making the completion of all household connections to essential infrastructure networks a mandatory requirement for obtaining approval for new residential developments. This decision falls under the “Residential Development Readiness” initiative, recently launched as part of the transformative “Usul” program.

The center explained that the adopted “Home Connections Guide” will serve as the comprehensive reference to ensure that all new developments are equipped with integrated and reliable infrastructure. The guide aims to standardize procedures, define obligations and technical standards for implementing water, electricity, and telecommunications connections, and clarify the technical and regulatory responsibilities of all stakeholders, including developers and service providers.

A historical context to keep pace with rapid growth

This step comes in the context of the tremendous growth Riyadh is experiencing, a key objective of Saudi Vision 2030, which aims to position the capital among the top 10 city economies in the world. Historically, rapid urban expansion has sometimes outpaced the completion of infrastructure projects, leading to residents moving into neighborhoods lacking basic services. This necessitates subsequent excavation and extension work, impacting quality of life and the urban landscape. This new requirement represents a qualitative shift from reactive to proactive planning, ensuring that new neighborhoods are 100% habitable from day one.

The importance and expected impact of the decision

Locally, this decision is expected to have a direct and positive impact on residents' quality of life by eliminating delays in service delivery and ensuring residential neighborhoods are ready for occupancy. It also enhances planning and implementation efficiency, increases the reliability of infrastructure networks, and preserves the city's urban character. Regionally and internationally, this initiative solidifies Riyadh's position as a smart and sustainable city that adopts global best practices in urban development, thereby increasing its attractiveness to foreign investment and global talent seeking a comprehensive and advanced living environment.

It is worth noting that the “Usul” program comprises a package of transformative initiatives aimed at developing the infrastructure system and enhancing coordination among more than 110 entities from the public and private sectors. The program's launch comes amidst significant growth in the sector, which now employs over 600 contractors and project implementers, reflecting the scale of the massive projects underway in the capital.