Saudi Arabia enters the “all inclusive” race on the Red Sea: what Rixos Murjana means and why comparisons with Egypt arise naturally
Saudi Arabia, which in recent years has placed tourism at the center of economic diversification, is entering a segment that has so far been convincingly dominated by Egypt on the Red Sea: mass, family “ultra all inclusive” resorts. The most concrete sign of this shift is Rixos Murjana, a large complex in King Abdullah Economic City (KAEC) on the coast of the Red Sea, described in industry announcements as the largest “ultra all inclusive” resort in the Kingdom. The mere fact that the project bears the “all inclusive” label, along with announcements of a water park, a large kids' club, and a range of restaurants and facilities under one roof, shows that Saudi Arabia no longer wants to rely exclusively on luxury, boutique, and “mega-project” concepts, but is testing a format that fills planes and agency catalogs.
Rixos Murjana: location, concept, and figures suggesting ambition
According to data published by the brand and partners, Rixos Murjana is located in King Abdullah Economic City, in a zone that has been developing in recent years as a planned urban and tourist center on the western coast of the Kingdom. The project spans approximately 275,000 square meters and is designed as a “self-contained” resort – a destination where a guest can spend their entire vacation without needing to leave the complex. The announced capacity is 488 rooms and suites, with an additional “Club Privé” segment featuring 33 overwater villas inspired by the Maldivian accommodation concept. Within the resort, a private beach about 600 meters long, a water park, and wellness facilities such as a spa center are cited, indicating a targeted combination of family vacation and premium experience.
In communications accompanying the project, design is often emphasized: Hijazi style as a regional reference, alongside contemporary architecture and interiors. The message is clear: Saudi Arabia wants to avoid the perception of copying existing “sun and sea” models and instead offer modern infrastructure, new construction, and a visual identity that relies on the local context. In practice, this means attempting to merge the “all inclusive” format with an aesthetic and standard more commonly associated in the region with more expensive Mediterranean or Turkish resorts.
Why “all inclusive” is an important move in the Saudi tourism strategy
The entry into the mass resort segment should be viewed through the broader framework of the Kingdom's tourism policy. Saudi tourism authorities, within initiatives related to Vision 2030, highlight that the country has already exceeded its earlier goal of 100 million domestic and international visits and is now aiming for 150 million visitors by 2030. These same reports emphasize the growth in tourism spending and the expansion of accommodation capacities, events, and facilities intended to reduce the economy's dependence on oil.
Such goals cannot be achieved solely through luxury hotels and niche experiences. “All inclusive” is the exact opposite: a standardized product that enables high volumes, predictability of spending, and clear value for families. In this logic, Rixos Murjana becomes more than just one hotel – it is a pilot project checking whether Saudi Arabia, with the support of state investment mechanisms, can build an offer wide enough to attract regional and international guests accustomed to packages with pre-defined prices.
In this context, the role of institutional support is also important. Official and industry announcements state that the project is enabled by the Tourism Development Fund (TDF), a fund presented as the national “enabler” of tourism investment. This specific framework – a combination of a private brand and publicly stimulated investment – is typical of the Saudi model of tourism sector development.
Egypt and the Red Sea: how mass tourism dominance was created
On the other side of the Red Sea stands Egypt, a destination that has for decades built a reputation for affordable vacations with large resorts and strong charter traffic. Hurghada and Sharm el-Sheikh have become synonymous with “all inclusive” arrangements, especially for European markets seeking a good price-to-quality ratio, sunny weather outside the main season, and a wide range of hotels in different categories. Egypt's advantage lies not only in natural conditions but also in the maturity of its tourism ecosystem: a network of local suppliers, tour operator habits, logistics, a large number of beds, and experience in managing mass arrivals.
This is confirmed by official demand figures. According to statements from Egyptian officials and media reports relaying government data, Egypt recorded a record of about 15.7 million tourist arrivals in 2024, despite regional geopolitical tensions. Simultaneously, sources from the Egyptian tourism sector report very high occupancy levels in coastal cities, including Hurghada and Sharm el-Sheikh, showing that demand for the “sun and sea” product remains strong.
Price as a key difference: Saudi Arabia targets a higher class
Comparisons between Saudi Arabia and Egypt are inevitable, but they also reveal a fundamental difference: price positioning. Market analyses published in tourism media suggest that Saudi “all inclusive” resorts on the Red Sea enter at a higher price point from the start, with expected ranges closer to premium Mediterranean destinations than classic Egyptian packages. The reasons are manifold: new construction, higher development costs, the ambition to build a “destination resort” with large investments in amenities, but also a broader structure of labor and service costs in the Kingdom.
This does not mean that Saudi Arabia necessarily wants to beat Egypt directly in a price race. Instead, it seems to be building an alternative for an audience that wants “all inclusive” without compromise regarding the novelty of infrastructure, breadth of facilities, and destination image. In such a model, Egypt remains the “value” champion, while Saudi Arabia tries to take a portion of the market looking for a higher category with the same package simplicity.
What the guest actually gets: facilities as an argument against “just the beach”
Rixos Murjana is positioned in announcements as a resort where content is just as important as the sea. A water park, a large kids' club, organized entertainment, multiple restaurants, and a wellness zone are typical elements of the “ultra all inclusive” model – but in the Saudi case, the emphasis is on the impression of a “new” and “designed” experience. This is important because the regional market is changing: families are increasingly choosing destinations based on activity packages and logistics security, not just sea temperature.
At the same time, such a content concept opens space for year-round tourism. If a resort can offer a guest enough indoor and organized activities, seasonality becomes less of an issue. This is particularly relevant for Saudi Arabia, which wants to increase arrival numbers and extend stays while balancing the climatic conditions of different periods of the year.
Investments, infrastructure, and destination reputation
In its tourism development, Saudi Arabia often emphasizes the “infrastructure leap”: new airports, road connections, planned urban zones, and resorts built from scratch. In this sense, Rixos Murjana is part of a larger picture – creating a destination chain on the Red Sea that relies on large investments and institutional support. The advantage of such an approach is quality control and the ability to quickly create a “new standard” of service.
At the same time, a destination's reputation is built through perceptions of openness, visa policy, flight availability, and the guest experience on the ground. Egypt has a major advantage in experience and recognition. Saudi Arabia must prove that mass resort tourism can function without friction: from entry into the country and transfers, through the offer of excursions and local gastronomy, to a sense of freedom of movement and clarity of rules. That is why Saudi projects often highlight standardization and the “carefree” nature of the stay – a value that the “all inclusive” format promises.
Regional competition and possible market consequences
If the Saudi “all inclusive” model proves successful, the consequences could be visible on several levels. First, tour operators and airlines could gain a new destination for family packages on the Red Sea, which would increase competition in the winter and transitional months when Europe seeks sun outside the Mediterranean. Second, Egypt could be encouraged toward additional investments in modernization and offer differentiation, especially in higher accommodation category segments.
Third, the question of standards will arise: will “all inclusive” in the Saudi way become a regional benchmark for facilities, safety, and service levels? This is particularly important because “all inclusive” in the perception of some travelers carries a reputation for mass scale, sometimes even uniformity. Saudi projects are clearly trying to maintain volumes while avoiding the stigma of a “cheap” vacation – and that is where the biggest test lies.
What is currently known about the opening and availability
In publicly available announcements, different information appears regarding the opening date of Rixos Murjana: part of the industrial announcements cited December 2025 as the planned date, while newer materials point to the beginning of 2026 and an opening during February 2026. At the time of writing, some global hotel platforms already display the property and basic information, which usually means that the commercial launch is underway or imminent. Such dynamics are not uncommon for large projects, where dates are adjusted to operational readiness and phased opening of facilities.
A shift being watched with special attention
Rixos Murjana, with its dimensions and ambition, is a symbol of a broader change: Saudi Arabia wants to be present in the vacation segment based on families, packages, and “everything in one place.” Egypt remains the reference point because it is the one that built the mass Red Sea model – with prices and infrastructure that can hardly be surpassed in the short term. But the Saudi strategy does not have to be a copy: targeting the premium part of the market, with strong state support and new construction, can create a parallel offer that will change traveler habits and thus the balance of the regional beach tourism market.
Sources:- Rixos Hotels – official hotel page and basic specifications (location, concept, facilities) (link)- Accor – hotel page in the Accor system (description of the “all inclusive” concept and facilities) (link)- Connecting Travel – industry announcement with opening date and key figures (capacity, villa, beach) (link)- Saudi Press Agency (SPA) / Ministry of Tourism – data on tourist visits and spending in 2024 (link)- Saudi Tourism Authority – overview of Vision 2030 goals and achievements in tourism (100+ million visits, goal of 150 million by 2030) (link)- Ahram Online – statement by the Egyptian minister on the record number of tourists in 2024 (15.7 million) (link)- Egypt Independent – reports of high hotel occupancy in coastal destinations like Hurghada and Sharm el-Sheikh (>90%) (link)
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