Saudi Arabia’s Business Travel Drove the Middle East’s 2025 Growth

Key Points

• The Middle East's travel and tourism sector grew 5.3% in 2025, driven largely by Saudi Arabia's strong performance.
• Saudi Arabia's business travel spending, especially from international visitors, surged in 2025 and now accounts for nearly half of the region's sector GDP.
• The outlook for 2026 is uncertain due to the Iran war, with forecasts of significant declines in international arrivals and spending.

Summary

The Middle East's travel and tourism sector saw robust 5.3% growth in 2025, outpacing the global average, with Saudi Arabia emerging as the key driver through surging business travel—particularly from international visitors. Saudi's sector grew 7.4%, and its business travel spending jumped more than 55%, accounting for nearly half of the region's sector GDP. However, the future is challenged by the Iran conflict, which is expected to cause a steep drop in international arrivals and substantial losses in visitor spending in 2026.