Saudi Vacation Rental Licenses Jump 333% as Market Hits $1.82 Billion
Licenses for private hospitality facilities rose 333% in 2024 as Riyadh supply grew 69% in a year.
Saudi Arabia’s vacation rental market is now valued at $1.82 billion, and the licensing data shows how fast the sector is leaving the informal economy behind. The Ministry of Tourism issued 8,357 licenses for private hospitality facilities in 2024, a 333 percent increase on the previous year.
The surge follows the regulatory framework introduced in 2023, which brought holiday homes, furnished apartments and other private rental stock under a formal licensing regime. Before it, most of the kingdom’s short-term rental supply operated informally.
Key figures
| Metric | Value |
|---|---|
| Vacation rental market size | $1.82 billion |
| Private hospitality licenses issued in 2024 | 8,357 |
| Year-on-year change in licenses | +333% |
| Riyadh short-term rental inventory growth | +69% in one year |
| Total visitors in 2025 | 122 million |
| Tourism spending in 2025 | SAR 300 billion |
| Revised 2030 visitor target | 150 million |
Riyadh leads supply growth
Riyadh’s short-term rental inventory grew 69 percent in a single year. Demand in the capital comes from several directions at once, which helps explain the pace of new supply.
| Market | Main demand drivers |
|---|---|
| Riyadh | Business travel, relocating expats, Riyadh Season, LEAP, Esports World Cup |
| Jeddah | Expat housing demand, Formula 1 |
| Makkah and Madinah | Religious tourism and pilgrims |
Visitor growth keeps raising the bar
Saudi Arabia hit its original Vision 2030 goal of 100 million annual visitors in 2023, well ahead of schedule, and has since raised the target to 150 million by 2030. Domestic and international visits reached 122 million in 2025, up around 5 percent on the year.
| Year | Visitors (domestic and international) |
|---|---|
| 2023 | 109 million |
| 2024 | 116 million |
| 2025 | 122 million |
| 2030 target | 150 million |
What it means for operators
| Area | Implication |
|---|---|
| Market access | A license is becoming the entry ticket, not an optional formality |
| Costs | Compliance costs are likely to rise as the regime matures |
| Distribution | Licensed listings gain legitimacy and easier bookability on mainstream platforms |
| Competition | Formalised supply brings more professional operators, especially in Riyadh |
The direction is clear: the Saudi market is moving quickly from informal to regulated. Operators who license early carry higher fixed costs today but are better placed to capture demand as visitor numbers climb toward the 2030 target.
Cover photo: Youhana Nassif on Unsplash
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Scale Team
Editorial Team · Scale Rentals Organisation
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