KSA business travel market report Size, Share, Growth Drivers, Trends, Opportunities & Forecast 2025–2030
Description
Saudi Arabia Business Travel Market Overview
The Saudi Arabia Business Travel Market is valued at USD 10 billion, based on a five-year historical analysis. This growth is primarily driven by the country’s economic diversification under Vision 2030, increased foreign direct investment, and the rapid expansion of the tourism and hospitality sector. The surge in corporate travel activities, alongside a significant rise in international events, technology sector collaborations, and large-scale infrastructure projects, has further accelerated market expansion. Key drivers include the influx of global consultants and executives for giga-projects such as NEOM, Qiddiya, and the Red Sea Project, as well as the growing need for in-person business engagement in finance, oil and gas, and technology sectors .
Key cities dominating the Saudi Arabia Business Travel Market include Riyadh, Jeddah, and Dammam. Riyadh functions as the political and economic center, attracting multinational corporations, government agencies, and hosting major conferences. Jeddah, strategically positioned as a gateway for pilgrims and international visitors, is a hub for global events and exhibitions. Dammam remains a critical center for the oil and gas industry, with ongoing business travel demand driven by energy sector activities and regional headquarters expansion .
The “Regulations for Issuing Visit Visas for Business” (2023) issued by the Ministry of Foreign Affairs streamline visa processes for foreign business travelers, introducing simplified application requirements, digital processing, and multi-entry options. This regulation is designed to facilitate easier access for international business professionals, promote increased foreign investment, and support participation in local business activities by reducing administrative barriers and expediting entry for corporate visitors.
Saudi Arabia Business Travel Market Segmentation
By Type:
The business travel market in Saudi Arabia is segmented into Corporate Travel, Incentive Travel, Conference and Exhibition Travel, Business Leisure Travel, and Project-Based Travel. Corporate Travel is the leading sub-segment, driven by the increasing number of regional headquarters, multinational operations, and project-based assignments in sectors such as energy, technology, and finance. The demand for travel related to meetings, negotiations, and corporate events has surged, reflecting the importance of face-to-face engagement for trust-building and efficient project execution. Incentive Travel remains significant, as organizations use travel rewards to enhance employee performance and retention, further supporting market growth .
By End-User:
The end-user segmentation of the business travel market includes Small and Medium Enterprises (SMEs), Large Corporations, Government & Public Sector, and Multinational Companies. Large Corporations dominate this segment, reflecting their extensive travel requirements for global operations, project management, and executive mobility. SMEs are increasingly active, leveraging business travel to expand market reach and establish international partnerships. Government and public sector travel is driven by official missions, policy forums, and international collaboration, while multinational companies use business travel to coordinate cross-border operations and support regional expansion .
Saudi Arabia Business Travel Market Competitive Landscape
The Saudi Arabia Business Travel Market is characterized by a dynamic mix of regional and international players. Leading participants such as Saudi Arabian Airlines (Saudia), Almosafer, Kanoo Travel, Dnata, Riyadh Travel and Tourism Company, Al Tayyar Travel Group (Seera Group), ITL World, Al Fursan Travel & Tourism, Al Rajhi Aviation, Al Khalidiah Tourism, BCD Travel, American Express Global Business Travel, FCM Travel Solutions, Egencia, and Travelport contribute to innovation, geographic expansion, and service delivery in this space.
Saudi Arabian Airlines (Saudia)
1945
Jeddah, Saudi Arabia
Almosafer
2012
Riyadh, Saudi Arabia
Kanoo Travel
1937
Dammam, Saudi Arabia
Dnata
1959
Dubai, UAE
Al Tayyar Travel Group (Seera Group)
1979
Riyadh, Saudi Arabia
Company
Establishment Year
Headquarters
Company Size (Large, Medium, Small)
Annual Revenue from Business Travel Segment
Number of Corporate Clients
Market Share (%)
Year-on-Year Revenue Growth (%)
Average Booking Value per Trip
Saudi Arabia Business Travel Market Industry Analysis
Growth Drivers
Economic Diversification Initiatives:
Saudi Arabia's Vision 2030 aims to reduce dependency on oil, targeting a non-oil GDP growth of 4.5% in future. The government is investing approximately $500 billion in various sectors, including tourism and entertainment, which are expected to enhance business travel. This diversification is crucial as it creates new opportunities for international business engagements, thereby increasing the demand for business travel services across the region.
Increased Foreign Investment:
In future, foreign direct investment (FDI) inflows are projected to reach $20 billion, driven by reforms that enhance the business environment. The Saudi Arabian General Investment Authority (SAGIA) has streamlined processes, attracting multinational corporations. This influx of investment not only boosts local economies but also necessitates increased business travel for meetings, negotiations, and project management, significantly impacting the travel market positively.
Enhanced Connectivity and Infrastructure:
The Saudi government is investing $30 billion in infrastructure projects, including the expansion of airports and the development of high-speed rail networks. In future, the number of international flights is expected to increase by 15%, improving access to major business hubs. Enhanced connectivity facilitates smoother travel for business professionals, thereby driving growth in the business travel sector as companies seek efficient travel solutions.
Market Challenges
Regulatory Compliance Issues:
Navigating the complex regulatory landscape in Saudi Arabia poses significant challenges for businesses. In future, compliance costs are estimated to rise by 10% due to stricter regulations on foreign investments and business operations. Companies must invest in legal expertise to ensure adherence, which can deter potential business travelers and increase operational costs, ultimately impacting the growth of the business travel market.
Cultural Sensitivity in Business Practices:
Saudi Arabia's unique cultural norms require foreign business travelers to adapt their practices significantly. In future, 60% of international business travelers report challenges in understanding local customs, which can lead to misunderstandings and hinder negotiations. This cultural barrier can deter potential business engagements, affecting the overall demand for business travel services in the region.
Saudi Arabia Business Travel Market Future Outlook
The Saudi Arabia business travel market is poised for significant transformation, driven by ongoing economic diversification and infrastructure enhancements. As the country continues to attract foreign investments and develop its tourism sector, business travel is expected to flourish. The rise of digital solutions and a focus on health and safety will further shape travel experiences. Companies are likely to adopt more flexible travel policies, accommodating remote work trends while ensuring compliance with evolving regulations, thus fostering a robust business travel environment.
Market Opportunities
Growth in MICE (Meetings, Incentives, Conferences, Exhibitions):
The MICE sector is projected to grow significantly, with an estimated 1,200 events planned in future. This growth is supported by government initiatives to promote Saudi Arabia as a global business hub, creating opportunities for increased business travel as companies seek to participate in these events, enhancing networking and collaboration.
Digital Transformation in Travel Services:
The adoption of digital tools in travel management is expected to increase by 25% in future. Companies are investing in AI-driven solutions to streamline booking processes and enhance traveler experiences. This digital shift presents opportunities for travel service providers to innovate and cater to the evolving needs of business travelers, ultimately driving market growth.
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The Saudi Arabia Business Travel Market is valued at USD 10 billion, based on a five-year historical analysis. This growth is primarily driven by the country’s economic diversification under Vision 2030, increased foreign direct investment, and the rapid expansion of the tourism and hospitality sector. The surge in corporate travel activities, alongside a significant rise in international events, technology sector collaborations, and large-scale infrastructure projects, has further accelerated market expansion. Key drivers include the influx of global consultants and executives for giga-projects such as NEOM, Qiddiya, and the Red Sea Project, as well as the growing need for in-person business engagement in finance, oil and gas, and technology sectors .
Key cities dominating the Saudi Arabia Business Travel Market include Riyadh, Jeddah, and Dammam. Riyadh functions as the political and economic center, attracting multinational corporations, government agencies, and hosting major conferences. Jeddah, strategically positioned as a gateway for pilgrims and international visitors, is a hub for global events and exhibitions. Dammam remains a critical center for the oil and gas industry, with ongoing business travel demand driven by energy sector activities and regional headquarters expansion .
The “Regulations for Issuing Visit Visas for Business” (2023) issued by the Ministry of Foreign Affairs streamline visa processes for foreign business travelers, introducing simplified application requirements, digital processing, and multi-entry options. This regulation is designed to facilitate easier access for international business professionals, promote increased foreign investment, and support participation in local business activities by reducing administrative barriers and expediting entry for corporate visitors.
Saudi Arabia Business Travel Market Segmentation
By Type:
The business travel market in Saudi Arabia is segmented into Corporate Travel, Incentive Travel, Conference and Exhibition Travel, Business Leisure Travel, and Project-Based Travel. Corporate Travel is the leading sub-segment, driven by the increasing number of regional headquarters, multinational operations, and project-based assignments in sectors such as energy, technology, and finance. The demand for travel related to meetings, negotiations, and corporate events has surged, reflecting the importance of face-to-face engagement for trust-building and efficient project execution. Incentive Travel remains significant, as organizations use travel rewards to enhance employee performance and retention, further supporting market growth .
By End-User:
The end-user segmentation of the business travel market includes Small and Medium Enterprises (SMEs), Large Corporations, Government & Public Sector, and Multinational Companies. Large Corporations dominate this segment, reflecting their extensive travel requirements for global operations, project management, and executive mobility. SMEs are increasingly active, leveraging business travel to expand market reach and establish international partnerships. Government and public sector travel is driven by official missions, policy forums, and international collaboration, while multinational companies use business travel to coordinate cross-border operations and support regional expansion .
Saudi Arabia Business Travel Market Competitive Landscape
The Saudi Arabia Business Travel Market is characterized by a dynamic mix of regional and international players. Leading participants such as Saudi Arabian Airlines (Saudia), Almosafer, Kanoo Travel, Dnata, Riyadh Travel and Tourism Company, Al Tayyar Travel Group (Seera Group), ITL World, Al Fursan Travel & Tourism, Al Rajhi Aviation, Al Khalidiah Tourism, BCD Travel, American Express Global Business Travel, FCM Travel Solutions, Egencia, and Travelport contribute to innovation, geographic expansion, and service delivery in this space.
Saudi Arabian Airlines (Saudia)
1945
Jeddah, Saudi Arabia
Almosafer
2012
Riyadh, Saudi Arabia
Kanoo Travel
1937
Dammam, Saudi Arabia
Dnata
1959
Dubai, UAE
Al Tayyar Travel Group (Seera Group)
1979
Riyadh, Saudi Arabia
Company
Establishment Year
Headquarters
Company Size (Large, Medium, Small)
Annual Revenue from Business Travel Segment
Number of Corporate Clients
Market Share (%)
Year-on-Year Revenue Growth (%)
Average Booking Value per Trip
Saudi Arabia Business Travel Market Industry Analysis
Growth Drivers
Economic Diversification Initiatives:
Saudi Arabia's Vision 2030 aims to reduce dependency on oil, targeting a non-oil GDP growth of 4.5% in future. The government is investing approximately $500 billion in various sectors, including tourism and entertainment, which are expected to enhance business travel. This diversification is crucial as it creates new opportunities for international business engagements, thereby increasing the demand for business travel services across the region.
Increased Foreign Investment:
In future, foreign direct investment (FDI) inflows are projected to reach $20 billion, driven by reforms that enhance the business environment. The Saudi Arabian General Investment Authority (SAGIA) has streamlined processes, attracting multinational corporations. This influx of investment not only boosts local economies but also necessitates increased business travel for meetings, negotiations, and project management, significantly impacting the travel market positively.
Enhanced Connectivity and Infrastructure:
The Saudi government is investing $30 billion in infrastructure projects, including the expansion of airports and the development of high-speed rail networks. In future, the number of international flights is expected to increase by 15%, improving access to major business hubs. Enhanced connectivity facilitates smoother travel for business professionals, thereby driving growth in the business travel sector as companies seek efficient travel solutions.
Market Challenges
Regulatory Compliance Issues:
Navigating the complex regulatory landscape in Saudi Arabia poses significant challenges for businesses. In future, compliance costs are estimated to rise by 10% due to stricter regulations on foreign investments and business operations. Companies must invest in legal expertise to ensure adherence, which can deter potential business travelers and increase operational costs, ultimately impacting the growth of the business travel market.
Cultural Sensitivity in Business Practices:
Saudi Arabia's unique cultural norms require foreign business travelers to adapt their practices significantly. In future, 60% of international business travelers report challenges in understanding local customs, which can lead to misunderstandings and hinder negotiations. This cultural barrier can deter potential business engagements, affecting the overall demand for business travel services in the region.
Saudi Arabia Business Travel Market Future Outlook
The Saudi Arabia business travel market is poised for significant transformation, driven by ongoing economic diversification and infrastructure enhancements. As the country continues to attract foreign investments and develop its tourism sector, business travel is expected to flourish. The rise of digital solutions and a focus on health and safety will further shape travel experiences. Companies are likely to adopt more flexible travel policies, accommodating remote work trends while ensuring compliance with evolving regulations, thus fostering a robust business travel environment.
Market Opportunities
Growth in MICE (Meetings, Incentives, Conferences, Exhibitions):
The MICE sector is projected to grow significantly, with an estimated 1,200 events planned in future. This growth is supported by government initiatives to promote Saudi Arabia as a global business hub, creating opportunities for increased business travel as companies seek to participate in these events, enhancing networking and collaboration.
Digital Transformation in Travel Services:
The adoption of digital tools in travel management is expected to increase by 25% in future. Companies are investing in AI-driven solutions to streamline booking processes and enhance traveler experiences. This digital shift presents opportunities for travel service providers to innovate and cater to the evolving needs of business travelers, ultimately driving market growth.
Please Note: It will take 5-7 business days to complete the report upon order confirmation.
Table of Contents
88 Pages
- 1. KSA business travel Size, Share, Growth Drivers, Trends, Opportunities & – Market Overview
- 1.1. Definition and Scope
- 1.2. Market Taxonomy
- 1.3. Market Growth Rate
- 1.4. Market Segmentation Overview
- 2. KSA business travel Size, Share, Growth Drivers, Trends, Opportunities & – Market Size (in USD Bn), 2019–2024
- 2.1. Historical Market Size
- 2.2. Year-on-Year Growth Analysis
- 2.3. Key Market Developments and Milestones
- 3. KSA business travel Size, Share, Growth Drivers, Trends, Opportunities & – Market Analysis
- 3.1. Growth Drivers
- 3.1.1. Economic Diversification Initiatives
- 3.1.2. Increased Foreign Investment
- 3.1.3. Expansion of Business Hubs
- 3.1.4. Enhanced Connectivity and Infrastructure
- 3.2. Restraints
- 3.2.1. Regulatory Compliance Issues
- 3.2.2. Cultural Sensitivity in Business Practices
- 3.2.3. Fluctuating Oil Prices
- 3.2.4. Competition from Regional Markets
- 3.3. Opportunities
- 3.3.1. Growth in MICE (Meetings, Incentives, Conferences, Exhibitions)
- 3.3.2. Digital Transformation in Travel Services
- 3.3.3. Sustainable Travel Initiatives
- 3.3.4. Development of Luxury Business Travel Services
- 3.4. Trends
- 3.4.1. Rise of Remote Work and Hybrid Models
- 3.4.2. Increased Focus on Health and Safety
- 3.4.3. Adoption of AI and Automation in Travel Management
- 3.4.4. Growth of Localized Travel Solutions
- 3.5. Government Regulation
- 3.5.1. Visa Reforms for Business Travelers
- 3.5.2. Tax Incentives for Business Investments
- 3.5.3. Regulations on Travel Safety Standards
- 3.5.4. Policies Supporting Sustainable Tourism
- 3.6. SWOT Analysis
- 3.7. Stakeholder Ecosystem
- 3.8. Competition Ecosystem
- 4. KSA business travel Size, Share, Growth Drivers, Trends, Opportunities & – Market Segmentation, 2024
- 4.1. By Type (in Value %)
- 4.1.1. Corporate Travel
- 4.1.2. Incentive Travel
- 4.1.3. Conference and Exhibition Travel
- 4.1.4. Business Leisure Travel
- 4.1.5. Project-Based Travel
- 4.2. By End-User (in Value %)
- 4.2.1. Small and Medium Enterprises (SMEs)
- 4.2.2. Large Corporations
- 4.2.3. Government & Public Sector
- 4.2.4. Multinational Companies
- 4.3. By Travel Purpose (in Value %)
- 4.3.1. Client Meetings & Negotiations
- 4.3.2. Training, Workshops & Seminars
- 4.3.3. Conferences & Exhibitions (MICE)
- 4.3.4. Site Visits & Project Management
- 4.4. By Service Type (in Value %)
- 4.4.1. Travel Management Services
- 4.4.2. Accommodation & Hospitality Services
- 4.4.3. Transportation (Air, Rail, Road)
- 4.4.4. Event & Meeting Management Services
- 4.5. By Booking Channel (in Value %)
- 4.5.1. Online Travel Agencies (OTAs)
- 4.5.2. Direct Corporate Booking
- 4.5.3. Travel Management Companies (TMCs)
- 4.5.4. In-house Corporate Travel Departments
- 4.6. By Duration of Stay (in Value %)
- 4.6.1. Short-term (1-7 days)
- 4.6.2. Medium-term (8-30 days)
- 4.6.3. Long-term (Over 30 days)
- 4.7. By Region (in Value %)
- 4.7.1. Central Region (Riyadh)
- 4.7.2. Eastern Region (Dammam, Khobar)
- 4.7.3. Western Region (Jeddah, Makkah, Madinah)
- 4.7.4. Southern Region
- 4.7.5. Northern Region
- 5. KSA business travel Size, Share, Growth Drivers, Trends, Opportunities & – Market Cross Comparison
- 5.1. Detailed Profiles of Major Companies
- 5.1.1. Saudi Arabian Airlines (Saudia)
- 5.1.2. Almosafer
- 5.1.3. Kanoo Travel
- 5.1.4. Dnata
- 5.1.5. Riyadh Travel and Tourism Company
- 5.2. Cross Comparison Parameters
- 5.2.1. Company Size (Large, Medium, Small)
- 5.2.2. Annual Revenue from Business Travel Segment
- 5.2.3. Number of Corporate Clients
- 5.2.4. Market Share (%)
- 5.2.5. Customer Satisfaction (NPS or Equivalent)
- 6. KSA business travel Size, Share, Growth Drivers, Trends, Opportunities & – Market Regulatory Framework
- 6.1. Compliance Requirements and Audits
- 6.2. Certification Processes
- 7. KSA business travel Size, Share, Growth Drivers, Trends, Opportunities & – Market Future Size (in USD Bn), 2025–2030
- 7.1. Future Market Size Projections
- 7.2. Key Factors Driving Future Market Growth
- 8. KSA business travel Size, Share, Growth Drivers, Trends, Opportunities & – Market Future Segmentation, 2030
- 8.1. By Type (in Value %)
- 8.2. By End-User (in Value %)
- 8.3. By Travel Purpose (in Value %)
- 8.4. By Service Type (in Value %)
- 8.5. By Booking Channel (in Value %)
- 8.6. By Region (in Value %)
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