Saudi Arabia drives “social oil” through religious tourism

17-08-25

Saudi Arabia is embracing a new economic paradigm: religious tourism has become its “social oil,” a powerful engine of wealth within the ambitious national transformation program Vision 2030. Traditionally, pilgrimages to Mecca and Medina have been the cornerstone of its tourism industry, sustaining national income beyond crude oil. Today, this sector generates approximately $12 billion annually, accounting for nearly 20% of the Kingdom’s non-oil economy and around 7% of total GDP, according to Astrolabs Insights 2024.

In the first quarter of 2025 alone, more than 6.5 million pilgrims performed Umrah—an 11% increase compared to the previous year—boosted by the expansion of the e-visa program to over 60 countries and an expanding air network connecting Asia and Africa more efficiently. This trend not only increases visitor flows but also drives related spending: during Ramadan, Makkah recorded a 162% surge in transactions—led by food and beverage purchases—while Medina saw a 64% rise, reflecting per-person expenditures ranging from $1,300 to $4,000 depending on the chosen package.

The impact extends well beyond revenue. In 2023, religious tourism generated over 936,000 jobs, a figure projected to reach 1.6 million by 2030 as infrastructure and service capacity continue to expand. This sustained force has led officials to describe tourism—particularly pilgrimage—as the Kingdom’s new oil.