Saudi Arabian Travel Startups are transforming the industry, fostering innovation, and attracting global investments, driving significant growth in the sector.

As the nation prepares to host the World Cup in 2030, the sector’s contribution to the economy is growing.

Based on the most recent data from the United Nations World Tourism Organization (WTO), Saudi Arabia received 25 million foreign visitors in 2024, a 25 percent increase from 2023.

The WTO’s executive director, Natalia Bayona, told AGBI that Saudi Arabia is the top nation in the Middle East for new tourism businesses and FDI inflows into the industry.

Saudi Arabia has averaged $5 billion in foreign direct investment (FDI) per year across all sectors during the last five years. According to WTO data, the nation received $3 billion in tourism-related foreign direct investment between 2014 and 2023.

In the startup ecosystem, innovation results in financial gains. Over $15 billion was earned by Saudi Arabia’s tourism industry last year.

Importantly, according to Bayona, the reason why tourist startups and many other up-and-coming companies are prospering is that they take advantage of Saudi Arabia’s rich cultural legacy, which gives them a competitive advantage.

“They are focusing on preserving traditions and supporting local businesses,” she said.

The Saudi Tourism Authority and the World Trade Organization recently held a tournament that showcased several of the nation’s up-and-coming companies.

The winner of the competition, Desert Nest, creates environmentally friendly lodgings that are adapted to the various Saudi Arabian settings. Among the runners-up are Riyadh Connect, a digital platform that curates cultural experiences for both visitors and locals, and Nomad Wheels, which provides guided desert safaris on electric motorcycles.

Vincenzo Zappino, senior partner at the Italian tourism consultancy Target Euro, said: “Saudi Arabia is making significant strides but remains in an early phase compared to well-established tourism ecosystems in Europe or North America. The startup culture in this sector is still evolving.”

According to Zappino, the nation is benefiting from the expanding tourism startup sector by expanding visitor stays, diversifying its products, and investigating new markets outside of well-known travel destinations like Riyadh and Jeddah.

“The increasing number of incubators, accelerators, and investment programs is accelerating this transformation,” he said.

Saudi Arabia also intends to increase the size of its infrastructure for tourists.

In anticipation of the World Cup that Saudi Arabia will hold in Riyadh, the minister of transportation said last month that $6 billion would be invested on airport development projects by 2030.

Saudi Arabia’s airports handled almost 50 million passengers last year, including both domestic and foreign visitors.

By 2030, this number is predicted to nearly double to 90 million, and by 2035, it will reach 120 million.