As the global conversation around urbanisation shifts from expansion to evolution, the idea of ‘smart cities’ has matured from glossy concept to strategic imperative.
For the MENA region, home to some of the most ambitious national transformation plans in the world, the next decade will be defining – particularly for tourism and hospitality. Smart cities are emerging as the operational core of future governments, engines of economic resilience, and platforms for reimagined citizenship.
From tech-enabled to purpose-driven
For too long, ‘smart’ was synonymous with ‘connected’, WiFi-enabled streetlights, autonomous shuttles, and AI traffic management. The term ‘smart city’ was first formally used in 1994, with the launch of ‘De Digital Stad’ (The Digital City) in Amsterdam. This initiative is credited as the point when the concept moved from theory into practice, laying the foundation for what we now recognise as the modern smart city paradigm.
However, the next decade will force a more meaningful recalibration as the real measure of a smart city will be its goals, among which, how does it solve climate resilience, affordable housing, public trust, and inclusive growth?
In MENA, this reframing is already visible. Saudi Arabia’s NEOM, the technological utopia, is an experiment in zero-emission living and new governance models. Also, Dubai’s AI roadmap redefines building a city that learns, predicts, and adapts to its people’s needs. On another level, Egypt’s New Administrative Capital predicts urban decentralisation to reduce congestion and improve service delivery. Each of these initiatives signals a shift where smart cities become statecraft in spatial form.
The transformation towards truly ‘smart cities’ will especially redefine the tourism and hospitality industry. With the integration of cutting-edge technology and sustainability, these cities will offer highly personalised and efficient services for travellers.
Smart tourism platforms will allow visitors to easily access information, book services, and receive real-time updates on activities and events in the city. The combination of technology, sustainability, and hospitality will make MENA’s cities attractive destinations for both traditional tourists and digital nomads.
The impact on tourism and hospitality
As cities evolve into immersive, tech-driven environments, tourism will shift from passive sightseeing to dynamic, data-enriched experiences. Smart cities will offer visitors frictionless travel journeys, from AI-powered visa and entry processes to real-time multilingual navigation, virtual cultural guides, and on-demand mobility. Hospitality will become deeply personalised, with hotels and entertainment venues leveraging predictive analytics and IoT to anticipate guest preferences before they arrive.
Many stakeholders have already started implementing these shifts. For MENA economies that are actively diversifying beyond hydrocarbons, such as Saudi Arabia and the UAE, tourism is becoming a platform to project culture, attract global talent, and deliver on national branding. In this context, smart cities will enhance the visitor experience while redefining the region’s position in the global tourism economy.
The data-governance compact
At the heart of future smart cities lies data. But in a region where questions of privacy, digital rights, and centralised control remain complex, the next decade must give birth to a new social contract. Cities will need to develop ethical frameworks and sovereign digital identities that empower individuals while enabling innovation.
This is particularly vital in MENA, where trust in institutions varies widely. Transparent algorithms, participatory tech policies, and AI explainability have become the cornerstones of public legitimacy. Cities that lead on this front will be able to attract talent and retain it.
Data will also play a critical role in shaping the future of hospitality in smart cities. By leveraging AI and predictive analytics, hotels will offer hyper-personalised services, from automated check-ins to customised room settings and tailored recommendations for activities. For tourists, smart cities will enable seamless experiences, with platforms providing up-to-date information about attractions, transportation, and events.
However, with these advancements, privacy and data security will remain paramount, and cities must ensure that data governance frameworks are robust and transparent to maintain public trust.
Infrastructure meets intelligence
The real promise of smart cities in the next decade is the convergence of hardware and humanware. Intelligence will be embedded into physical infrastructure. Smart grids that predict energy will surge, and water systems that self-diagnose leaks will be more recurrent along with buildings that respond to climate conditions and occupancy needs in real time.
For instance, Dubai Electricity and Water Authority (DEWA) is investing AED 7 billion in a smart grid initiative as part of Dubai’s vision to become the smartest and happiest city globally. The smart grid enables 24/7 integrated electricity and water services with features like automated decision-making and interoperability, leveraging AI and IoT technologies from the Fourth Industrial Revolution.
Key smart initiatives include the first of its kind in the MENA region Automatic Smart Grid Restoration System (ASGR), which operates autonomously to detect, isolate, and restore faults without human intervention. It also brings a Big Data & Analytics Platform, which enhances grid operations, asset management, and stakeholder experience by integrating and analysing large data sets.
Elsewhere, Diriyah Company is deploying the IBM Maximo Application Suite to strengthen asset management across the US$63.2 billion Diriyah Project, a major smart city development near Riyadh. By integrating IBM Maximo, Diriyah will benefit from AI-powered predictive maintenance and real-time infrastructure monitoring — minimising downtime and boosting the sustainability and efficiency of urban operations.
Hotels and hospitality infrastructure will need to align with these advancements, with adaptive systems that integrate AI to monitor guest preferences, energy use, and facility needs. For example, energy-efficient buildings and systems that self-diagnose maintenance issues will become the norm in the hospitality sector. Similarly, tourist destinations will become more intelligent, utilising AI to predict peak times, optimise visitor flow, and reduce environmental impacts. This will create smarter, more sustainable travel experiences for visitors.
For rapidly urbanising MENA countries, cities must become adaptive ecosystems. And this is where strategic foresight becomes critical. Therefore, governments must plan for tomorrow’s complexity and employ technology to enhance all these aspects and treat challenges.
Skills, systems, and sovereignty
Technology is yet only one piece of the puzzle, as smart cities require smart people and smarter policies. With automation transforming the nature of work, cities will have to reimagine education, upskilling, and lifelong learning. Universities and vocational programs must evolve into agile knowledge hubs, feeding into local innovation ecosystems.
Equally, national and municipal governments must collaborate, not compete, especially that the main challenge resides in governance transformation and not the sole digital transformation. Policies must be data-informed, services must be citizen-centric, and institutions should be interoperable.
Finally, we must acknowledge the geopolitical implications. Smart cities in MENA will increasingly act as soft power tools, magnetising investment, showcasing national innovation, and influencing global urban agendas. The concept of cities as soft powers has been discussed throughout the years, and technology has enhanced it and accelerated its happening.
The UAE has already positioned itself as a living lab for future technologies. Saudi Arabia is turning its giga-projects into symbols of post-oil ambition. With these long-term strategies and aspirations, the race has altered from building the tallest tower, to designing the most livable, intelligent, and inclusive city.
The next decade
The MENA region has a unique opportunity, and responsibility at the same time, to lead the global smart city movement, not just as adopters, but as architects. But this leadership must be grounded in vision as well as with vigilance. The next decade will separate the truly visionary from the merely flashy. And the smartest cities of the future will be those with the clearest sense of purpose and not the largest number of sensors.
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Autor(en)/Author(s): Dmitry Kaminski
Quelle/Source: Hotelier Middle East, 16.07.2025
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