The Rapid Growth in Saudi Arabia MICE Industry will drive the Hospitality sector
The Saudi Arabia Meetings, Incentives, Conferences and Exhibitions (MICE) market is growing at a rapid pace owing to infrastructural development in the hospitality sector. MICE refers to meetings, incentives, conferences and exhibitions, and includes the planning and execution of corporate or leisure events such as conventions, exhibitions and cultural events with the aim of attracting inward tourism to a country. The Saudi MICE industry provides various services including venue booking, travel booking, food &beverage coordination and event organizing. With extensive government support for diversifying the economy away from oil, the hospitality and tourism sector is witnessing significant investments in hotels, resorts and entertainment facilities.
The Global Saudi Arabia MICE Market is estimated to be valued at US$ 2.69 Bn in 2024 and is expected to exhibit a CAGR of 5.7% over the forecast period 2024 to 2030.
Key players operating in the Saudi Arabia Meetings, Incentives, Conferences and Exhibitions (MICE) Market Size are VRB Energy, H2 Inc., ESS Tech Inc., Stryten Energy, Vanadis Power GmbH, CellCube Energy Storage Systems Inc., Primus Power Corporation, Dalian Rongke Power Co. Ltd., RedFlow Ltd., and Invinity Energy Systems PLC.
Key Takeaways
Key players: VRB Energy is a leading provider of vanadium redox batteries for MICE event solutions in Saudi Arabia. H2 Inc. offers hydrogen fuel cell powered energy storage to major conference venues. ESS Tech Inc. supplies iron flow batteries to convention centers in Riyadh and Jeddah.
Growing demand: Rapid growth in tourism arrivals coupled with increasing frequency of global and regional exhibitions is fueling the demand for MICE facilities and services in Saudi Arabia. The government aims to increase international visits to 100 million by 2030.
Technological advancements: Leading venues are incorporating smart energy storage, LED illumination and virtual/hybrid meeting solutions to provide enhanced experiences to organizers and participants. Digital technologies are enabling hybrid business events with international participation.
Market Trends
Sustainability initiatives - Major hotels and convention centers are implementing sustainability programs to lower carbon footprint and waste generation from MICE activities. Renewable energy integration and net-zero targets are growing priorities.
Expanded infrastructure - The government is developing new exhibition complexes, entertainment districts and business parks near airports to boost MICE hosting capabilities. Flagship projects include NEOM and Qiddiya entertainment city.
Market Opportunities
Healthcare conventions - Saudi Arabia is emerging as a regional healthcare hub and provides opportunities for specialized medical conferences, symposiums and continuing education seminars.
Regional expos - By supporting major trade shows in strategic sectors like construction, technology, energy, food and hospitality, the country can attract high spending delegations from GCC and Middle East markets.
Impact of COVID-19 on Saudi Arabia MICE Market
The COVID-19 pandemic has severely impacted the growth of the Saudi Arabia MICE market. With the imposition of lockdowns and travel restrictions globally, business events and conferences came to a grinding halt. This led to a sharp decline in the revenues of hotels, event organizers, exhibition halls, and other stakeholders associated with the industry. In 2020, many planned MICE events in Saudi Arabia were either postponed or cancelled. Some notable cancellations include the Holy Month of Ramadan Tent Project and the Riyadh Season cultural event.
However, with the rollout of vaccination drives worldwide, business and leisure travel is expected to gradually resume from 2022. Many local and international organizers in Saudi Arabia are optimizing hybrid and virtual platforms to engage audiences and minimize disruption. The government is also collaborating with industry bodies to promote the Kingdom as a safe MICE destination post-pandemic. New guidelines have been issued for organizing hybrid/blended conferences and exhibitions. Financial support is being provided to the sector. It is estimated that physical MICE activities may reach pre-COVID levels by 2024, aided by pent-up demand and the returning confidence of travelers. Hotels, venues, and F&B establishments are gearing up with advanced safety protocols and technologies.
Geographical regions with concentration of Saudi Arabia MICE Market value
In terms of value, the Saudi Arabia MICE market is highly concentrated in Riyadh, Jeddah, and Makkah regions. Riyadh, being the capital city, hosts the maximum number of domestic and international business conferences, exhibitions, incentive trips, and cultural events throughout the year. The presence of various government institutions and multinational corporations drives its prominence. Similarly, Jeddah is a major commercial hub and sees a large volume of leisure as well as event activities during seasonal festivals. Makkah holds significance as the holiest city for Muslims, attracting religious tourism on a large scale, particularly during Hajj and Ramadan.
Fastest growing region for Saudi Arabia MICE Market
One of the fastest growing regions for the Saudi Arabia MICE market is Al-Madinah. With the government undertaking ambitious infrastructure projects, hospitality brands and venues are enhancing their presence in the city. Major initiatives like the Al-Madinah Metro, King Abdullah Financial District, and Royal Commission for Al-Ula seek to transform the city into a vibrant business and tourism center. This is attracting more regional and international organizers to host niche events focused on religious tourism, cultural heritage, eco-adventure, wellness, and arts & crafts. Backed by improved connectivity and a broadening portfolio of attractions, the MICE potential of Al-Madinah is expected to rise substantially over the coming years.
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