The UAE is set to be one of the region’s most active hotel markets, with much of its new supply due by 2028-2030, as new HVS data shows the GCC and North Africa has $90 billion worth of hotels and resorts in the pipeline.
The figures were released ahead of the Future Hospitality Summit (FHS World) 2026, taking place at Madinat Jumeirah in Dubai from 29 September to 1 October.
UAE ranks third in regional hotel pipeline
The UAE is the third most active country in the region’s hotel development pipeline, after Saudi Arabia and Egypt. According to HVS, the country is a comparatively mature market that continues to evolve through destination-led developments, particularly in Dubai, Abu Dhabi and Ras Al Khaimah. Projects such as Wynn Al Marjan Island are expanding the UAE’s international appeal.
The UAE’s delivery timeline is shorter than in many neighbouring markets, with a significant proportion of new supply expected by 2028-2030.
200,000 new rooms to lift regional supply by 27%
Across Dubai, the wider GCC and North Africa, around 200,000 new rooms are planned, which would boost existing supply by 27 percent. About 88,000 rooms are under construction and another 25,000 are in the final planning stages. Experts say over 55% of upcoming hotels will be delivered between now and 2030.
The rooms will arrive in phases rather than all at once. Around 44% are already being built, with the rest expected to be handed over in stages through 2030 and beyond.
Saudi Arabia and Egypt lead the region
Saudi Arabia dominates the pipeline with 110,000 rooms, around 50% of the total, under development in Riyadh, Makkah, Madinah, Diriyah, NEOM, the Red Sea and AMAALA. Its projects range from large pilgrimage-focused hotels to luxury resorts, branded residences and upper midscale accommodation, and major destination projects will be delivered well into the next decade.
Egypt follows with 42,000 rooms, with projects in Cairo, the North Coast, the Red Sea and emerging mixed-use destinations. Its development cycle is spread across several years.
HVS says capital is being deployed with greater discipline, favouring mixed-use developments, branded residences and phased delivery to improve project economics and manage risk. Funding models have also evolved beyond developer equity and bank debt. In Saudi Arabia especially, large destination projects are backed by government-backed investment vehicles and public-private partnerships.
Luxury and upper-upscale hotels still account for the largest share of supply, while upper midscale activity is growing, particularly in Saudi Arabia, with brands such as Hampton by Hilton, Holiday Inn Express, Fairfield by Marriott and ibis expanding.
Hala Matar Choufany, President, Middle East, Africa and South Asia at HVS, said the pipeline “is no longer just a story of scale, it’s one of discipline.” She added that success will depend on connectivity, talent, operational excellence and guest experience, so that new supply translates into sustainable demand and attractive investor returns. “The focus is shifting from simply building hotels to creating sustainable, globally competitive hospitality ecosystems,” she said.
FHS World 2026 to focus on investment
Ali Shahid, CEO of The Bench, organisers of FHS World, said the data reflects the scale of opportunity across the region. Investment and real estate will be at the core of the conference agenda, with industry leaders examining where global capital sees opportunity and how investors are recalibrating for returns. FHS World 2026 runs under the theme “Reinvest in our Future.”
tanvir@dubainewsweek.com
