Business travel spend in Middle East up 20% in 2025

Business travel spending across the Middle East rose 20% in 2025, fuelled by a rebound in MICE activity, major regional events and an uptick in cross-border corporate engagement — a trajectory set to continue through 2026.

 

UAE-headquartered travel management company Musafir.com reported strong corporate demand across the UAE, Qatar and Saudi Arabia, as executives increasingly use trade fairs and exhibitions to strengthen partnerships and client relations. Many travellers are also extending stays to balance work and downtime, turning business trips into blended travel experiences.

 

Musafir noted that corporate travel in the region is becoming more strategic, with companies prioritising high-value engagements such as leadership retreats, innovation forums and partnership negotiations. The trend reflects a broader rise in bleisure travel, while in-person meetings across GCC cities remain critical for building trust and accelerating decisions.

 

Travel between the UAE and Saudi Arabia — particularly along the Dubai–Riyadh corridor — surged last year, driving higher hotel occupancy from sectors including construction, real estate, energy and technology. The UAE’s hotel occupancy rate reached 79.3% in the first ten months, among the highest worldwide.

 

Echoing this momentum, business travel platform Tumodo reported that the Dubai–Riyadh route is now the region’s busiest and most cost-effective for corporate travellers, with average fares of US$174 (AED640) and US$233 (AED855), underscoring stronger GCC connectivity.

 

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Sachin Gadoya, CEO and co-founder of musafir.com, said there has been a clear change in why companies travel, especially across GCC markets, defined by “purposeful moments that drive alignment, trust and outcomes”.

 

He added: “The future of corporate travel belongs to organisations that travel with purpose. When travel is tied to strategy, it becomes a catalyst for innovation, trust and long-term growth.”

 

Musafir.com highlighted five key trends expected to shape business travel in 2026:

• Greater focus on high-impact over high-frequency travel

• Sustained growth in MICE and major industry events

• Increased intra-GCC corporate travel

• Wider adoption of AI-powered travel planning tools

• Consolidation of sustainable, data-driven travel strategies

The business travel sector in the Middle East is expanding faster than the global average, with bookings rising 40% across the Middle East and North Africa (MENA) in the first half of 2025. Tumodo projects the MENA region will reach US$270.8 billion by 2030, growing at a compound annual rate of 8.3%, reflecting the sector’s steady recovery and evolving priorities. 

 

For more information, visit musafir.com