World's largest hotel in KSA faces delay

Featuring 10,000 rooms and 70 restaurants, the opening of Abraj Kudai in Makkah could be delayed according to experts.

Saudi Arabia’s US $3.5 billion (AED 12.8 billion) hotel project, Abraj Kudai— expected to become the world’s biggest hotel (by room count) in Makkah, may have trouble completing as scheduled by 2017, according to Forbes Middle East.

A potential ripple effect on the Saudi economy, caused by the low oil prices last year, may to be blame according to a recent Gulf Business article.

Boston University School of Hospitality Administration assistant professor of hospitality finance and accounting Tarik Dogru noted how the country’s fiscal deficit has risen to approximately US $100 billion (AED 367 billion) in 2015, which effectively makes budget management of a major project like Abraj Kudai especially challenging.

Ultimately, “The decision about when and how to complete the Abraj Kudai would depend on the government, and it will probably be an important indication of how a restructured Saudi Arabia economy will look like,” added Dogru.