ADFD highlights its investment in sustainable tourism to boost growth

On World Tourism Day, Abu Dhabi Fund for Development (ADFD) highlights how investment in sustainable tourism can support economic diversification, strengthen local economies and create long-term value.

Through its financing and investment activities, ADFD supports projects that combine tourism assets with the infrastructure, connectivity and local capabilities needed to strengthen destinations.

Rashed Al Kaabi, Acting Deputy Director General and Executive Director of Investment Sector at ADFD, said, “Investment in tourism can create value across the wider economy, supporting diversification, attracting investment and generating opportunities for local communities.

At ADFD, we look at projects through their broader economic impact, supporting the infrastructure and assets that can strengthen destinations and contribute to sustainable growth in our partner countries.”

ADFD’s portfolio reflects this focus on the broader economic impact of tourism investment, with projects that connect hospitality and cultural assets with the infrastructure needed to support their surrounding destinations. This includes the Dhs440 million investment in the Sofitel Legend Pyramids Giza project in Egypt, located near one of the country’s most significant cultural landmarks, as well as the development of an Dhs764.5 million tourism complex in Salalah, Oman, spanning 2.5 million square metres and incorporating hospitality facilities, a marina, coastal development, roads and public utilities.

In Morocco, support for the Asilah Museum has strengthened cultural infrastructure, helping preserve and showcase the city’s heritage while contributing to its tourism appeal and local economy.

Together, these projects reflect ADFD’s focus on investments that connect tourism with infrastructure, economic activity and local opportunities, supporting the long-term growth of destinations in partner countries.

UAE expands tourism landscape: The UAE is accelerating investment in major tourism and leisure projects, strengthening the sector’s contribution to economic growth and enhancing the country’s competitiveness as a global destination.

The momentum in 2026 has included major new destinations, luxury facilities and entertainment experiences across several emirates, reflecting a continued shift towards more diverse tourism offerings integrating investment with culture, sustainability and leisure.

In Abu Dhabi, Yas Island was selected in May as the location for Sphere Abu Dhabi, whose construction phase will cost $1.7 billion, making it the first Sphere venue outside the United States.

Located between Yas Mall and SeaWorld Abu Dhabi, the venue will accommodate up to 20,000 people and host immersive experiences, concerts, sporting events, conferences and other major events, while showcasing Emirati culture and supporting local and Arab talent. Miral has also announced an investment of more than Dhs12 billion across Yas Island over the next five years to develop new projects and expand existing attractions.

The investment supports Abu Dhabi Tourism Strategy 2030 and will include further development of Yas Island’s theme parks and attractions, alongside new immersive rides and experiences.

Dubai, meanwhile, approved the Al Layan Oasis project in February as a new environmental and recreational destination spanning one million square metres, including a lake covering more than a quarter of a million square metres.

The development will feature walking and cycling tracks, family and events areas, an outdoor cinema, camping facilities for 100 caravans, retail outlets and recreational services within a sustainable natural environment.

Dubai also approved a Dhs500 million master plan to redevelop Umm Suqeim Beach into an integrated, all-day tourism and leisure destination reflecting Emirati identity.

The project will increase the beach’s capacity to around six million visitors annually and includes upgraded facilities, parking, walking and cycling tracks, a 38-metre observation tower and a two-kilometre coastal retaining wall. Smart technologies and artificial intelligence will also be deployed in facilities management. In Sharjah, the foundation stone was laid this year for Abu Al Keizan Marine Village in Khorfakkan, a seven-million-square-foot development inspired by coastal villages and incorporating elements of Islamic architecture and local identity.

The development includes a small natural harbour carved between rocks, a boulevard, beach, green spaces, a hotel, commercial and office facilities, residential units and a mosque. It comprises 201 plots designated for 285 buildings and has been designed to preserve the surrounding natural environment and marine life.

Khorfakkan also welcomed the Dhs700 million Khorfakkan Resort this year, adding a major residential and tourism destination to the coastal city.

The resort features 573 residential units, 16 retail outlets, a gym, 100,000 square feet of elevated green spaces, outdoor swimming pools, children’s sports and recreation areas, a private beach and integrated hotel services.

In Ras Al Khaimah, development work began on Al Rams Waterfront and Al Rams Boulevard as part of efforts to create an integrated destination supporting quality of life, sustainable development and national identity.

The Al Rams waterfront stretches for 2,000 metres and includes dedicated walking, cycling and jogging tracks, public facilities, parking, green spaces, playgrounds and plazas for community events.

WAM