In an unprecedented move to elevate Saudi Arabia's tourism industry, Asfar, a tourism investment startup backed by the country's sovereign wealth fund, is set to launch new hotel and entertainment projects in lesser-known tier-two cities. CEO Fahad Bin Mushayt revealed plans to roll out developments in Al Bahah in the southwest and Yanbu on the Red Sea coast by the year's end, propelling the kingdom towards its vision of becoming a top global destination.
As part of Crown Prince Mohammed bin Salman's economic diversification agenda, the government has committed nearly $1 trillion to boosting tourism, aiming to welcome 150 million tourists annually by 2030. Asfar's upcoming projects in various regions across Saudi Arabia, excluding Riyadh and Jeddah, are expected to introduce 2,000 hotel keys and attract five million new visitors by the end of the decade.
While Riyadh remains a prominent hub for international travelers and upcoming global events, Asfar's focus on tier-two cities seeks to extend visitors' stays and broaden the kingdom's appeal. With project costs ranging from $40 million to $107 million each, Asfar aims to secure at least 30% of funding from the private sector, contributing to the government's goal of attracting up to $80 billion in private investment by 2030.
Saudi Arabia's thriving tourism sector, which attracted $3.8 billion in private investment in 2024, continues to flourish under the stewardship of Tourism Minister Ahmed Al-Khateeb. As Asfar pioneers new developments in diverse locales, the kingdom edges closer to diversifying its economy, enriching its cultural offerings, and solidifying its position on the global tourism map.