Saudi Arabia’s gross domestic product (GDP) grew 3.9 per cent in the second quarter of 2025 driven by the non-oil sectors, according to government data estimates released on Monday.

Non-oil activity grew by 4.6 per cent compared to the same quarter last year, according to the Saudi General Authority for Statistics. Sectors like electricity, gas and water showed the highest growth followed by finance, insurance and business activities.

The economy grew across all sectors with oil up 3.8 per cent and government activities growing 0.6 per cent.

Oil activities showed largest growth compared to the first quarter, rising by 5.6 per cent.

The Saudi-led OPEC+ agreed to further raise oil production on Sunday, as the kingdom pushes to regain market share.

Read: Saudi Arabia’s non-oil exports rise 17.8% in Q2 2025

The eight members of OPEC+ agreed on Sunday in an online meeting to raise production from October by 137,000 barrels per day, much lower than the monthly increases of about 555,000 bpd for September and August and 411,000 bpd in July and June.

The increases in output have led to a fall in oil prices of around 15 per cent so far this year. Prices have not collapsed, however, trading at around $65 a barrel, supported by Western sanctions on Russia and Iran.

The lower oil prices are predicted to weigh on the Saudi economy, with the International Monetary Fund saying Riyadh needs a price over $90 per barrel to balance its books.

Saudi Arabia is in the midst of a costly economic transformation program known as Vision 2030 that aims to wean the economy off oil dependency and is spending billions to boost sectors like tourism, entertainment and sports.

Saudi Arabia’s 2025 fiscal deficit is forecast at around 101 billion riyals ($27bn).

I have worked in the Middle East for over two decades, and rarely have I seen the region’s hospitality market in such a strong position. Hotels across the UAE are operating at near-record levels, with national revenues topping $12bn in 2024 and average occupancy rates climbing to 78 per cent. In Dubai, demand reached the point earlier this year where hotels held above 93 per cent occupancy for ten straight days — an almost unheard-of run in global terms.

Saudi Arabia is pushing the scale even further. With more than 275,000 keys in its pipeline, it is now the second-largest development market in the world, behind only China. The Kingdom’s Vision 2030 strategy is reshaping not just its skyline but its entire tourism economy, with a target of welcoming 150 million annual visitors by the end of the decade.

Against this backdrop, operators are under enormous pressure to expand capacity, enhance guest experience, and ensure that new investments are resilient. The result is a wave of “supersizing.” Yet supersizing in 2025 is not about size for its own sake. It is about creating smarter assets. Hotels and destinations that work harder commercially, operate more efficiently, and deliver lasting value.

Supersizing through refurbishment

One of the fastest ways to grow is by drawing more value from what already exists. At Carter Hones Associates, we were hired to manage the refurbishment of all 707 guest rooms at the Grand Hyatt Dubai. It was the largest project of its kind in the region at the time. The challenge was not simply to deliver new interiors, but to do so seamlessly in a live hotel environment, while extending the property’s life cycle and strengthening its competitive edge.

At the Mövenpick JBR, we supported the conversion of a royal suite into multiple guest rooms, providing feasibility studies, design coordination, and fit-out oversight. By increasing the yield of existing space without structural changes, the operator boosted revenue per square metre with minimal disruption. In a market where construction costs rose by more than 10 percent last year, these kinds of targeted refurbishments are proving invaluable.

Supersizing through new builds

Of course, new hotels remain central to the region’s growth story. The Gran Meliá at Port de La Mer in Dubai is a striking example. With 365 keys, suites, and extensive leisure amenities, it reflects the shift towards larger, amenity-rich hotels that cater to travellers looking for immersive, multi-day experiences.

Our role on this project started with design management and tender services, evolving into full time project and cost management services as this major landmark development on one of Dubai’s most prominent sites commenced construction. In today’s climate, where investor confidence depends on keeping budgets aligned with design ambition, these controls are critical. By ensuring funds flow into the elements that truly elevate guest experience, we are helping deliver a hotel that will stand out in a highly competitive market.

Supersizing through master planning

Supersizing can also mean thinking beyond a single property. At Al Jurf in Abu Dhabi, a 330-hectare, Dhs12bn development that integrates hospitality, residential, and wellness offerings, we were seconded directly into the client’s team. Our project directors, design managers, and contract specialists worked side by side with the client to streamline decision-making and keep delivery on track.

What makes Al Jurf significant is not just its scale but its vision. It is an example of how hospitality is increasingly embedded into wider master plans that create lifestyle-driven destinations. For investors and operators alike, these types of developments offer multiple revenue streams and long-term value far beyond room rates alone.

Building resilience into assets

Supersizing is also about resilience. Larger assets with diversified revenue streams are better positioned to withstand market shocks. The pandemic made that point clear: hotels with adaptable spaces and income sources from F&B, wellness, and retail rebounded faster than those reliant on a single model.

Sustainability is now adding another dimension. Research from the World Travel & Tourism Council shows that 69 per cent of travellers are actively seeking sustainable options. Supersized hotels and integrated destinations have the scale to implement renewable energy, advanced waste management, and low-carbon design solutions. This isn’t just about meeting regulations; it is about staying relevant to the next generation of travellers.

Looking ahead

The Middle East hospitality market has entered a transformative decade. From record-breaking occupancy in the UAE to Saudi Arabia’s unprecedented development pipeline, the growth we are seeing is reshaping the industry at a global level.

Read: Dubai hotel occupancy tops 81% in H1 as tourism surges, says Cavendish Maxwell

For me, the lesson from the multitude of hospitality projects we have worked on in recent years is that supersizing is not just about building bigger. It is about building smarter: assets that balance financial discipline with guest experience, scale with operational efficiency, and ambition with sustainability.

Operators who understand this will not only benefit from today’s surge in demand, but they will also set the standard for the future of hospitality in the Middle East.

Hotel occupancy in Dubai reached more than 81 per cent in the first half of 2025, marking a 4.5 per cent year-on-year rise, according to new research from real estate advisory firm Cavendish Maxwell. The emirate also welcomed nearly 10 million international visitors during the period, up 6.1 per cent compared to the same time last year.

Cavendish Maxwell’s H1 2025 hospitality sector performance report shows the average daily rate (ADR) across Dubai hotels and resorts climbed 5.5 per cent year-on-year to AED745. With the peak tourism season approaching, 19 new hotels with over 5,000 rooms are set to open by the end of 2025, bringing Dubai’s total hotel inventory to 157,144 keys across 748 properties. Almost 900 rooms across five hotels were delivered in the first half of the year.

Vidhi Shah, director, head of commercial valuation at Cavendish Maxwell, said: “The first half of this year has seen yet another outstanding performance from Dubai’s hospitality sector, which continues to lead the way in setting new benchmarks in safety, inclusivity and connectivity. Government initiatives, strategic international partnerships, a packed events calendar and new attractions, coupled with sustained ability to attract diverse visitor profiles while consistently elevating guests’ experiences, has led to growth in airport passenger traffic, tourist figures, hotel occupancy rates, ADR levels and overall hotel inventory. With 5,000 new rooms on the way this year – and another 6,000 in 2026 and 2027 – Dubai is set to remain and premium, global destination of choice for both leisure and business travellers.”

Key findings from Cavendish Maxwell’s report

• Dubai’s hotel inventory has grown from 670 establishments in 2021 to about 730 in 2025 – an increase of 9.3 per cent.

• The number of hotel keys has risen nearly 11 per cent over the same period, from 137,600 to 152,000.

• Dubai International Airport handled 46 million passengers in H1 2025, a 2.3 per cent increase year-on-year, despite temporary airspace disruption in May and June. Passenger traffic at Dubai World Central rose more than 36 per cent.

• Around 67 per cent of Dubai’s hotel inventory is in the luxury, upper upscale, or upscale categories, with 33 per cent in Upper Midscale, Midscale, or Economy segments.

• In 2025, 84 per cent of new hotels are in premium categories.

• Occupancy rose across all segments, with upscale hotels recording the highest increase at 5.5 per cent.

• ADRs grew across all segments, with Upper Midscale properties leading at 8.5 per cent.

• Of the 9.9 million visitors in H1, Western Europe was the largest source market, accounting for over 21 per cent of arrivals – a 12 per cent increase year-on-year.

Market outlook: Upscale growth and Luxury dominance ahead

Of the 5,000 rooms scheduled for delivery by year-end, 30.4 per cent are in the Upscale category, 29.8 per cent in Upper Upscale, and 24.25 per cent in Luxury. Key projects include the 259-key Mandarin Oriental Downtown, Anantara Seven City at Jumeirah Lakes Towers (78 keys), and Jumeirah Living Business Bay (82 keys). Looking ahead, Luxury will dominate the 2026 pipeline, accounting for 61 per cent of new supply, with major developments such as Ciel Dubai Marina, Dorchester Collection Ela by Omniyat, and InterContinental Portofino.

Midrange categories (Upper Midscale, Midscale, and Economy) will collectively make up 15 per cent of new supply in 2025 and just 7.6 per cent in 2026.

Beyond Dubai: Hospitality growth across the UAE

Hospitality performance was strong across other emirates in H1 2025. Abu Dhabi’s city hotels saw ADRs rise more than 28 per cent, while resorts increased over 21 per cent, supported by demand for luxury, beach, and wellness tourism. Ras Al Khaimah recorded a 7.6 per cent ADR rise and welcomed 653,000 visitors, up 5.7 per cent year-on-year. Fujairah ADRs climbed 6.1 per cent, underpinned by coastal and boutique resort demand.

Read: UAE hotels reach 70% occupancy: What’s behind the surge?

Occupancy at Abu Dhabi resorts rose 7.5 per cent, while city hotels grew 1.1 per cent, supported by a 13 per cent rise in passenger traffic at Abu Dhabi International Airport, which handled 15.8 million passengers in H1. RAK occupancy increased 1.4 per cent, while Fujairah maintained stable rates, supported by new direct flights and UNWTO-backed adventure tourism initiatives.

WHX Tech, the inaugural global meeting point for digital health leaders, innovators, investors, and policymakers, opens its doors today (8 September 2025) at the Dubai World Trade Centre.

Organised by Informa in partnership with HIMSS, the three-day event promises to showcase how AI, connected care, and emerging technologies are reshaping healthcare delivery and innovation.

With more than 300 brands on the exhibition floor and over 200 expert speakers confirmed, WHX Tech will deliver insights across three dedicated stages — World X, Xcelerate, and Future X. Day one is set to offer a strong start with high-level keynotes, expert discussions, and the launch of one of the region’s most anticipated startup competitions.

As part of the opening ceremony, H.E. Dr Amin Al Ameeri, assistant undersecretary of health regulations sector at the UAE Ministry of Health and Prevention (MOHAP), delivered a welcome address, followed by Peter Hall, president IMEA at Informa, who introduced the goals of the World X Stage and highlighted the importance of collaboration in driving digital health innovation; Dr Amer Sharif, CEO of Dubai Health, then gave an inaugural keynote on “Future-Proofing Healthcare – Building a Healthier World for Tomorrow,” followed by a keynote from H.E. Dr Fatima Al Kaabi, director general of the Emirates Drug Establishment, with Hal Wolf, president of HIMSS, concluding the session with a keynote titled “Digital Health Has a New Power Center: Why All Eyes Are on the Middle East.”

World X stage: Setting the agenda

The event opens with a ceremony that will set the tone for WHX Tech’s ambitions as a platform to accelerate digital health adoption. A key session will focus on the role of health informatics and data in advancing healthcare in the region. Dr. Mohammad Al Redha, director of Health Informatics & Smart Health at the Dubai Health Authority, will lead the conversation, joined by moderator Dr. David Rhew, global chief medical officer and VP of Healthcare at Microsoft.

Xcelerate stage: Spotlight on startups

Day one will also see the Xcelerate startup competition kick off, featuring more than 40 startups competing for a $50,000 cash prize. Beyond the pitch stage, entrepreneurs and investors will engage in practical discussions on scaling businesses post-investment.

• You’ve Acquired Funding, Now What? will feature Vusi Thembekwayo, group CEO of MyGrowthFund Venture Partners, exploring how founders can turn new capital into a 12-month growth roadmap, while avoiding common post-funding pitfalls.

• CVC’s Role in Fostering Innovation in Healthcare will open up the boardroom of corporate venture capital, with Dr. Susan Amat, CEO of Venture Hive, and Scott Lenet, partner at Cerity Partners, unpacking deal structures, founder autonomy, and the strategic versus financial value of CVCs.

Future X stage: Innovations in longevity

On the Future X stage, the spotlight turns to consumer-facing technologies with the potential to transform ageing and longevity. Dr. Richard Siow, director of Ageing Research at King’s College London, will discuss digital biomarkers of ageing and how scalable technologies can support lifestyle interventions and disease prevention.

A launchpad for healthcare transformation

By convening global leaders, disruptive startups, and capital providers under one roof, WHX Tech aims to accelerate collaboration and inspire solutions that will define the next generation of healthcare. Day one’s sessions offer a strong mix of regional priorities, investor insights, and breakthrough science — setting the stage for three days of high-impact dialogue and innovation.

To register, click here.

Two major subsea cables were damaged near Jeddah in Saudi Arabia on Saturday, disrupting internet connectivity across the Middle East, South Asia and parts of Africa.

Global internet observatory NetBlocks confirmed failures affecting the SEA-ME-WE 4 (SMW4) and IMEWE cable systems, two critical links in the region’s digital infrastructure. The incident forced operators to reroute traffic through alternative paths, leading to widespread slowdowns.

In the UAE, customers of Etisalat by e& and du reported difficulties loading websites, streaming video and using messaging apps. Complaints surged on outage tracker Downdetector, peaking at around 9pm on Saturday.

Read more – Internet slowdown: Why the Red Sea’s SMW4 and IMEWE cables matter

Cloudflare Radar data confirmed shifts in internet routing during the incident, which impacted international traffic. Microsoft also warned that its Azure cloud customers could experience increased latency for traffic passing through the Middle East, particularly on routes linking Asia and Europe.

“Undersea fibre cuts can take time to repair; as such, we will continuously monitor, rebalance, and optimise routing to reduce customer impact,” Microsoft said.

Key data corridor

The Red Sea is a vital global data corridor, carrying around 17 per cent of the world’s internet traffic, according to telecom research firm TeleGeography. A dense web of fibre-optic cables runs through the Red Sea, Arabian Gulf and Arabian Sea, with key landing points in Egypt, Saudi Arabia, the UAE, Oman and Djibouti.

Even localised damage can ripple out across continents, disrupting services such as cloud applications, financial platforms and airline systems that rely on real-time connectivity.

Past incidents have underscored the vulnerability of the region. In early 2024, three cables were cut after a vessel struck by Houthi rebels drifted and dropped anchor in the Red Sea, causing weeks of service disruption.

Analysts say the region’s shallow waters, heavy shipping traffic and geopolitical tensions make it especially prone to both accidental and deliberate damage.

Pakistan Telecommunications Company Ltd confirmed a reduction in capacity and said it had arranged alternative bandwidth to mitigate the impact. Similar disruptions were reported in Kuwait, where authorities said the FALCON GCX cable had also been damaged.

Fixing undersea cables is a complex, costly process requiring specialised vessels, trained crews and favourable weather conditions. The International Cable Protection Committee (ICPC) estimates repairs can cost between $1m and $3m per incident.