Jabal Omar Address Makkah ... will meet the growing need for luxury accommodation in the holy city, when it opens in 2019.

Construction contract awards in Saudi Arabia for hotel and leisure projects are likely to hit $2.5 billion by the end of the year on the back of a boom in this sector, a report has revealed.

The report from Venture Onsite was released ahead of The Big 5 Outdoor Design & Build Show in Dubai, which ran from September 25 to 27.

The show included the FM Expo, Windows, Doors & Facades and Gulf Glass events.

Saudi’s Vision 2030 is encouraging positive growth for the hotels and leisure industry.

In April, the kingdom’s Public Investment Fund announced its plans to build the largest cultural, sports, and entertainment city in the world, according to the report.

By 2022, sports, cultural and recreational facilities will be developed along with a safari and a Six Flags theme park over a 334-sq-km area south of Riyadh, said the report entitled “GCC Hotels & Leisure Market.”

While expanding its capacity to accommodate religious visitors in Makkah and Madinah, the kingdom is also broadening its hospitality market in a bid to diversify the national economy.

The Red Sea project, announced by the Public Investment Fund in August, will develop a tourism hub on more than 50 natural islands between Umluj and Al Wajh. Construction of luxury resorts is expected to start in 2019, with Phase 1 to be completed by 2022, said the report.

The positive trend is confirmed across the whole region. In the GCC, the hotels and leisure construction contractor awards are expected to record a 13 per cent jump, from $11.23 billion in 2016 to $12.7 billion in 2017, stated the report.

With sustainability becoming progressively important to Saudi Arabia, hotels and leisure facilities are increasing their green spaces, incorporating design concepts that employ sustainable and cost-effective products, it added.

“The booming hotels and leisure construction market is driving an unprecedented demand for outdoor design and landscaping projects in the region,” said Josine Heijmans, the portfolio director of the show.