RIYADH: As global business shifts toward emerging markets, the Middle East and North Africa is seeing steady growth in corporate travel, strengthening its position as a rising business travel hub.
The sector is expanding faster than the global average — reaching $18.1 billion in 2024 and projected to grow 6.1 percent year on year in 2025, according to a report by UAE-based travel platform Tumodo. Investors, airlines, and hospitality giants are already taking note of the region’s transformative potential.
MENA’s business travel bookings surged 40 percent in early 2025 compared with late 2024, with April and May marking the busiest months post-Ramadan.
The broader market is expected to hit $270.8 billion by 2030, fueled by infrastructure development, digital innovation, and deepening economic ties with Europe and Asia.
“The impressive 50 percent year-on-year growth we’ve seen this year signals a shift from recovery to reinvention,” said Stan Klyuy, chief commercial officer of Tumodo, in the report, noting that average airfares are down by 12 percent and hotel bookings up by 2 percent.
Rita Raad, senior principal of strategy and transformation of the public sector at FTI Consulting, explained in an interview with Arab News: “The 40 percent surge in business travel bookings to MENA in the first half of 2025 reflects a powerful mix of regional momentum and shifting global priorities.”
She added: “Much of this growth is driven by the GCC (Gulf Cooperation Council), where the economy is projected to grow 4.2 percent in 2025-26 compared to about 1.5 percent in Europe, fueled by 3.7 percent non-oil sector expansion and diversification efforts.”
Oil and gas, technology, and finance remain the biggest corporate travel drivers, according to Raad, while Saudi Arabia’s giga-projects continue to draw waves of consultants, engineers, and operators.
Hassan Malik, tourism and sport consulting leader and partner at Deloitte Middle East. (Supplied)
Hassan Malik, tourism and sport consulting leader and partner at Deloitte Middle East, told Arab News that the region is indeed “witnessing a remarkable rebound and reinvention in corporate travel.”
A key catalyst of business travel growth, according to Malik, is “the influx of mega-projects and infrastructure in Saudi Arabia, like Qiddiya, Neom, and the Red Sea project, drawing global business and investment interest.”
Meshal Al-Faras, head of Middle East, Africa and Central Asia at Janus Henderson, told Arab News: “We are seeing a sustained shift in how international companies and investors view this region, and Saudi Arabia is a clear driver of that momentum.”
Meshal Al-Faras, head of Middle East, Africa and Central Asia at Janus Henderson. Supplied
He added: “The objectives of Vision 2030 are being implemented at scale across infrastructure, logistics, finance and tourism. That level of clarity and execution attracts interest from global organizations that want to grow in a stable and high-potential market.”
Travel trends
According to Tumodo’s report, Saudi Arabia led as the top destination for users of the platform, accounting for 20 percent of all travel, followed by the UK at 15 percent, and France and India each at 10 percent.
Regional airlines Emirates, Turkish Airlines, and Qatar Airways dominated preferences, while India emerged as the most affordable route and the UK as the premium choice.
Regarding the trend for bleisure — trips that blend business with leisure — Raad noted: “The concept of bleisure continues to shape corporate mobility in MENA, with 25 percent of business travelers now extending their stays for leisure, especially among younger generations prioritizing work-life balance.”
She mentioned that airlines such as Qatar Airways, Etihad, Emirates, and Saudia were responding by enhancing their in-flight and ground services to cater to bleisure travelers.
Rita Raad, senior principal of strategy and transformation of the public sector at FTI Consulting. (Supplied)
These upgrades included features such as fully lie-flat seats, priority lounge access, and flexible entertainment and dining options, enabling passengers to work comfortably and relax during flights and transit.
Malik said that bleisure has now become mainstream, with many travelers extending work trips for personal time or combining them with relaxation. He noted that business travelers are increasingly staying longer to explore local destinations.
“Airlines are responding by introducing premium economy offerings, enhanced Wi-Fi, and flexible stopover packages, and Emirates and Etihad also now routinely promote wellness and sightseeing add-ons,” added Malik.
Al-Faras commented that the idea of business travel being limited to boardrooms no longer reflects how people operate, adding that executives want both flexibility and quality when they travel.
He added: “In Saudi Arabia and across the GCC, we are seeing that expectation being met with strong investment in premium hospitality, high service standards, and facilities that allow people to work and relax in the same setting.”
Sustainability and tech
On sustainability efforts, Raad explained that MENA’s business travel sector is increasingly balancing growth with sustainability by embedding CO2 tracking and AI-driven cost optimization into corporate travel operations.
“Platforms like Tumodo now let companies forecast spending, measure emissions, and enforce eco-friendly routing — optimizing for shorter flights, sustainable hotels, and consolidated itineraries — and delivering emissions reductions of up to 20 percent,” she added.
Malik added that sustainability is becoming central to corporate travel strategy in MENA, noting that national targets in the UAE, Saudi Arabia, and Qatar all aim for net-zero emissions in the coming decades through Vision 2030 and national energy strategies. He emphasized that “sustainability is increasingly core to corporate travel strategy in MENA.”
Malik noted that businesses are aligning procurement, travel, and logistics with green standards, prioritizing local suppliers and offset schemes via platforms like MENA’s Global Carbon Council, the region’s first voluntary carbon offsetting program.
Investor takeaways
Looking at investment opportunities, Al-Faras stated: “I believe the $270 billion projection is realistic as this growth is supported by what we are seeing across the GCC.”
He added that there is strong demand for physical infrastructure — ranging from airports and rail to hotels and event spaces — as well as for digital platforms that support business travel and mobility. Al-Faras noted that Saudi Arabia has developed a pipeline of projects in these areas and has shown “a clear willingness to partner with private capital.”
Raad cautioned that investors needed to carefully assess risks, as the massive scale of ongoing mega-developments could disrupt market balance if demand growth slowed.
She also highlighted potential regulatory shifts in visas, ownership, and taxation that might impact investment returns, along with increasing environmental, social, and governance pressures.
Companies are increasingly demanding low-carbon travel, which would require the timely adoption of Sustainable Aviation Fuel and green-certified infrastructure.
Malik concluded: “Risks are very real, too. The biggest challenge will be timing and coordination. If infrastructure growth — number of flights, hotel rooms, venue capacity — doesn’t align across the board, there’s a risk of overcapacity in one area and bottlenecks in another.”
He added: “Regulatory complexity across countries and cities may slow seamless integration. Delivering not just on time, but to international quality standards, will be crucial to sustaining momentum.”
As MENA’s business travel sector surges, the region’s blend of innovation, sustainability, and economic diversification cements its status as a global leader — with no signs of slowing down.
