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RIYADH: ��������’s hospitality sector continued its growth momentum in the first half of 2025, with the average daily rate rising 1.9 percent year on year to reach SR821.8 ($219.06), according to new data. 

The findings, published in JLL’s “Q2 2025 Hotels Market Dynamics” report, also showed that revenue per available room edged up 0.2 percent to SR512.3 during the same period, reflecting the Kingdom’s ongoing transformation of its tourism and hospitality industries. 

Nationwide occupancy eased by 1.7 percentage points year on year to 62.3 percent in the first half, but the sector remains underpinned by the Saudi Vision 2030 agenda, which aims to raise tourism’s contribution to gross domestic product from 3 percent to 10 percent and generate 1 million new jobs by the end of the decade. 

It also aligns with the country’s goal of attracting 150 million visitors annually by 2030, surpassing the initial Vision 2030 target of 100 million. 

Taimur Khan, head of research at JLL Middle East and Africa, said: “The evolving market dynamics in ��������’s key cities point to significant transformations, driven by ambitious government initiatives and a strategic focus on diversifying the Kingdom’s tourism offerings, in line with the Vision 2030 goals.”  

He added: “Despite short-term performance adjustments, the long-term outlook remains positive as expanding tourism offerings create new development opportunities and attract domestic and international investors seeking to capitalize on the Kingdom’s strong tourism growth.”  

The report further indicated that after experiencing record tourism growth in 2024, ��������’s hospitality sector is now witnessing major strategic changes, fueled by a surge in leisure tourism and a significant rise in high-quality offerings outside conventional urban hubs. 

Although religious tourism remained strong in the holy cities of Makkah and Madinah, performance metrics in Riyadh and Jeddah were more subdued or saw declines, reflecting differing market dynamics across regions. 

Riyadh faced the steepest performance declines in the first half of 2025, with both occupancy and ADR dropping 5 percentage points and 6.9 percent year on year, respectively. In contrast, Jeddah showed mixed results, with a 1.9 percentage point rise in occupancy despite a 7.1 percent fall in ADR.

Makkah posted relatively strong results, recording a 7.1 percent increase in ADR and a 3.1 percent rise in RevPAR, even as occupancy slipped 3.7 percentage points.

Madinah registered solid RevPAR growth of 2.7 percent in the year to June 2025. 

“In H1 2025, both Riyadh and Jeddah maintained healthy development pipelines. The capital city added approximately 690 keys in H1 2025, increasing the total hospitality stock to 49,100 keys. An additional 1,080 keys are expected to enter the market in H2, reinforcing its position as the Kingdom’s primary business and increasingly important leisure destination,” the report said. 

“New hotel developments in Riyadh are increasingly positioned away from traditional city centers, with international operators like Marriott, Hilton, Accor, and IHG driving high-quality supply growth,” it added. 

The report also disclosed that Jeddah added 750 new hotel keys, raising its total inventory to 18,760, with a further 1,300 expected by the end of the year. This positions the city for continued growth, supported by rising demand from major events such as Jeddah Season, Formula 1, and Saudi Pro League matches. 

During the first half of 2025, Makkah and Madinah maintained stable hotel inventories at 154,590 keys and 60,170 keys, respectively. However, notable expansion is anticipated in the second half of the year, with 5,590 new keys planned for Makkah and 710 for Madinah.

RIYADH: ��������’s buy-now-pay-later platform Tamara has announced a new asset-backed financing facility of up to $2.4 billion in a landmark deal.

The transaction, unveiled at the Money20/20 conference in ��������, upsizes a previous $500 million facility arranged by Goldman Sachs, underscoring strong investor confidence in Tamara’s growth and the regional fintech market.

According to a press release, the Shariah-compliant facility is backed by a consortium of global financial heavyweights, including Goldman Sachs, Citi, and funds managed by Apollo, and will be used to help the company expand into new credit and payment products.

Tamara is the Kingdom’s first fintech unicorn and offers payment solutions to over 20 million customers. It is backed by investors including Sanabil Investments, a wholly-owned company of the Public Investment Fund, and SNB Capital.

Abdulmajeed Al-Sukhan, co-founder and CEO of Tamara, hailed the deal as a pivotal moment for the company, adding: “This landmark facility with our global financing partners accelerates our growth trajectory, empowering us to invest further in building the most customer-centric financial super-app on earth.” 

Tamara’s facility is structured with an immediate initial commitment of $1.4 billion, with an additional $1 billion available over a three-year period subject to certain approvals. 

The new capital is earmarked to fuel Tamara’s expansion into new credit and payment products, enhancing its lending capacity and supporting its vision to become a comprehensive financial super-app.

The deal not only bolsters Tamara’s commercial ambitions but also aligns with the strategic goals of ��������’s Vision 2030. 

By enhancing the company’s ability to support private sector growth and attracting significant inward investment from major international institutions, the facility supports the Kingdom’s Financial Sector Development Program and its aim to advance its capital markets.

As ��������’s first homegrown fintech unicorn, Tamara has seen rapid growth since its $340 million Series C round in December 2023. The platform now partners with more than 87,000 merchants, including major global brands Apple, IKEA, and Amazon.

This facility positions Tamara for its next phase of regional expansion and product diversification, solidifying its leadership in the Gulf Cooperation Council’s fintech landscape.