Abha’s Green Highlands and Daikin’s New Factory: Key Developments for Saudi Tourism

Published on November 29, 2025

Saudi Arabia’s Vision 2030 Objectives are being advanced by the developments in the tourism and infrastructure sectors underway in the country. Jeddah’s new Daikin advanced HVAC facility under construction and the Green Highlands in Abha are being developed into a premier tourism site. These initiatives are aligned with the Kingdom’s desire to reach its objective to be a global player in tourism. These projects target the current influx in tourists to the destination in order to ensure comfortable and sustainable tourism to the Kingdom.

Daikin’s New Jeddah Factory: Enhancing Cooling Capacity for Mega-Projects

In a significant move to address the growing demand for energy-efficient cooling solutions, Daikin, a global leader in HVAC technology, broke ground on a new manufacturing facility in Jeddah on November 26, 2025. The factory will focus on producing large-scale chillers and hydronic heat pumps designed specifically for the extreme heat and humidity of the Gulf region.

This new facility is critical to Saudi Arabia’s ongoing mega-projects, including the NEOM city and Red Sea developments, which are driving unprecedented demand for efficient, industrial-scale cooling systems. The Jeddah factory will enable Daikin to produce locally, reducing lead times and ensuring that Saudi Arabia’s high-efficiency cooling solutions are tailored to the region’s unique climate conditions.

With its proximity to major projects on the Red Sea coast, the Jeddah factory will also shorten supply chains, providing a more resilient and cost-effective solution to meet the Kingdom’s expanding tourism and infrastructure needs. Daikin’s efforts are part of a broader strategy to support Saudi Arabia’s Vision 2030 goal of attracting 150 million visitors annually by 2030.

Tourism and Infrastructure: The Interdependence of Cooling and Growth

At first glance, the construction of a manufacturing plant might seem unrelated to tourism, but under Saudi Arabia’s Vision 2030, the two are closely intertwined. As the country plans to boost its tourism sector, cooling capacity has become an essential component of tourism infrastructure. The growing number of visitors will require comfortable accommodations, malls, entertainment venues, and transport hubs—environments where reliable air conditioning is crucial.

The Daikin factory’s focus on energy-efficient systems directly contributes to the sustainability of Saudi Arabia’s tourism projects. The ability to produce locally will also help reduce the environmental impact of energy consumption, aligning with the Kingdom’s commitments to decarbonization and sustainable development.

Abha’s Green Highlands: A New Mountain Tourism Hub

While Jeddah’s manufacturing sector is gearing up for the tourism boom, Saudi Arabia’s southern city of Abha is already seeing its transformation into a prime tourist destination. Located in the Asir region, Abha has long been known for its cool temperatures and mountainous landscapes. Now, the city is being positioned as a tourism hub, with an emphasis on wellness, eco-tourism, and cultural experiences.

Abha’s appeal as a domestic escape has already been proven, with Saudis and visitors from the Gulf flocking to the region to enjoy its misty forests, cool climate, and stunning mountain views. As part of Vision 2030, the city is being developed to attract both domestic and international tourists, with infrastructure projects including the expansion of Abha International Airport and the development of luxury resorts, glamping sites, wellness centers, and golf courses.

One of the key attractions in Abha is Jabal Soudah, the highest peak in Saudi Arabia, which offers breathtaking views and outdoor adventure opportunities such as hiking and paragliding. This, combined with the city’s burgeoning cultural and heritage tourism offerings, is making Abha an increasingly popular destination for those seeking a more authentic and relaxed experience in Saudi Arabia.

Expanding Saudi Arabia’s Tourism Offering

The dual approach of enhancing cooling technology and expanding mountain tourism in Abha reflects Saudi Arabia’s broader tourism strategy under Vision 2030. As the Kingdom seeks to diversify its tourism offerings beyond the traditional luxury resorts and pilgrimage tourism, destinations like Abha are being developed to cater to a wider range of travelers, from eco-tourists to wellness seekers.

Abha’s transformation into a cultural tourism hub is expected to bring economic benefits to the region, including job creation in hospitality, transport, and retail sectors. The development of new tourism infrastructure, including public spaces like Art Street and parks such as Al Sahab, will further enrich the visitor experience. The growing number of foreign and domestic tourists visiting Abha is set to boost the local economy and support the long-term goals of Vision 2030.

The Role of Infrastructure in Achieving Vision 2030’s Goals

As Saudi Arabia moves forward with its Vision 2030 plans, the interplay between infrastructure development and tourism growth becomes increasingly apparent. The construction of Daikin’s new factory and the ongoing development of Abha’s tourism sector are examples of how the Kingdom is strategically building the infrastructure needed to accommodate a rapidly growing number of visitors.

The ability to provide high-quality infrastructure, such as energy-efficient cooling solutions, sustainable resorts, and accessible transportation, is key to attracting both leisure tourists and international investors. Saudi Arabia’s efforts to diversify its tourism sector by offering a mix of luxury, adventure, wellness, and cultural experiences are making the Kingdom an increasingly attractive destination on the global stage.

Addressing Local Concerns and Balancing Development

While the rapid development of tourism infrastructure in Abha and other parts of Saudi Arabia presents vast opportunities, it also raises concerns among locals about the potential impact on the region’s natural beauty and cultural heritage. Some residents worry that the focus on luxury resorts could drive up rents and change the character of the area. The government and developers will need to address these concerns to ensure that growth is both sustainable and inclusive, benefiting local communities while preserving the region’s cultural identity.

A Sustainable Path Forward for Saudi Tourism

Daikin’s cooling technology and the development of Abha as a mountain tourism attraction demonstrate Saudi Arabia’s dedication in the continued building of the Kingdom’s tourism infrastructure and the goals of Vision 2030. With its emphasis on sustainability and cultural integrity, as well as preserving efficiencies, Saudi Arabia is on its way to becoming the premiere global tourism destination.