$1tn being pumped into leisure industry

A massive $1 trillion is being invested in leisure projects across the Middle East, part of $3.63 trillion being spent on travel and tourism in the region over the next 12 years, according to a study by think tank Fast Future and Global Futures and Foresight (GFF).

The Middle East Leisure Landscape 2020 study, released on Saturday, highlighted the UAE and Saudi Arabia as the main countries driving the surge in investment.

GFF said Dubai accounted for $381.4 billion of projects in the region either planned or underway, while its neighbouring emirate Abu Dhabi accounted for $131.3 billion. Saudi Arabia has $184.4 billion worth of projects either planned or underway, it said.

Development within the UAE are being led by state-owned real estate giant Tatweer, which is developing projects worth 131.3 billion, and Abu Dhabi's Aldar Properties, which has $71.1 billion worth of developments in the pipeline, GFF said.

It said Dubai-based Emaar Properties was developing $16.5 billion of projects, but if its stakes in joint ventures such as King Abdullah Economic City (KAEC) in Saudi Arabia were taken into account the total value of projects in which it is involved rose to $136.5 billion.

GFF said KAEC was the single largest project being developed in the Middle East at US$120 billion, followed by the $110 billion Dubailand development, Kuwait’s $86 billion City of Silk development and the $61 billion Arabian Canal development in Dubai.

The think tank said of the $1 trillion being invested, $171.8 billion was committed to pure leisure projects such as museums and theme parks, $218.3 billion was being invested in leisure resorts, which $611.9 billion was committed to projects such as residential or commercial developments with a large leisure component.

“The sheer scale of the spending on travel and tourism across the Middle East demands an equivalent level of investment in the supporting leisure landscape if the region is to succeed in attracting the visitor levels it is targeting," Rohit Talwar, the report’s co-author and CEO of GFF, said in a statement.

"The research highlights that there is clearly the ambition, vision and funding in place to develop a range of world class leisure offerings across the region."

The study covered 166 projects across 13 countries, including Bahrain, Egypt, Iran, Jordan Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, Turkey, the UAE and Yemen.