Riyadh, December 16, 2024 – As part of its ambitious Vision 2030, Saudi Arabia is transforming its sports sector into a vibrant economic pillar, creating a dynamic environment for both local and international investors. With the Kingdom set to host the FIFA World Cup 2034, these transformative investments are drawing significant global attention and positioning Saudi Arabia as a rising powerhouse in the global sports arena.
The sports sector in Saudi Arabia has rapidly become a central focus of the Kingdom’s economic diversification strategy. Vision 2030 aims to reduce the country’s dependency on oil, and sports has emerged as a key contributor to this effort. The sector’s impact on Saudi Arabia’s economy has been staggering, with the GDP contribution from sports surging by 170% in just two years—rising from SAR 2.4 billion to SAR 6.5 billion. This explosive growth highlights the sector’s potential as a driver of economic development. Furthermore, the revenues generated by non-governmental sports clubs have also seen a remarkable increase, surpassing SAR 2 billion during the same period.
Football, in particular, has become the centerpiece of Saudi Arabia’s sports investment boom. The Roshn Saudi Pro League (SPL), the Kingdom’s premier football competition, has grown into the third most lucrative football league globally in terms of sponsorship revenues. This success has been bolstered by the establishment of 17 investment firms within SPL clubs and a significant expansion of the league’s broadcasting reach. From just 10 countries in 2015, the SPL’s broadcast coverage has now reached 130 countries worldwide as of 2023, further enhancing Saudi Arabia’s global sports presence.
To sustain and accelerate this growth, Saudi Arabia has rolled out a host of incentives for investors, ranging from financial support to enhanced infrastructure and simplified investment processes. These initiatives aim to create a thriving ecosystem for private sector growth, talent cultivation, and the development of emerging sports sectors like e-sports. The government is also focused on providing clear regulatory frameworks to ensure a smooth and supportive environment for investors, helping to stimulate continued expansion within the sports industry.
Since 2016, Saudi Arabia has hosted over 100 international sporting events spanning more than 50 different sports disciplines. This remarkable achievement has been underpinned by substantial infrastructure investments, including the construction of world-class venues and facilities. These efforts have generated attractive opportunities for tournament organizers and sponsors, positioning the Kingdom as a key destination for prestigious international competitions.
Looking forward, Saudi Arabia is undertaking an ambitious plan to further elevate its sports infrastructure by developing world-class stadiums across five key cities: Riyadh, Jeddah, Al-Khobar, Abha, and NEOM. The Kingdom’s vision includes the construction of 15 state-of-the-art stadiums, 11 of which will be newly built. These cutting-edge arenas will provide investors with unparalleled opportunities, including commercial partnerships, event hosting, and sponsorship deals, as Saudi Arabia continues to invest in its infrastructure to support both international and domestic sporting events.
In addition to infrastructure, the Kingdom is deeply committed to fostering the development of local sporting talent. This commitment includes significant investments in sports academies, which will not only focus on nurturing local athletes but also encourage foreign clubs to establish their own academies in Saudi Arabia. The Kingdom is enhancing the capabilities of its existing clubs and strengthening their sports education programs, ensuring that young athletes receive world-class training and development opportunities.
To facilitate the growth of the sports sector, Saudi Arabia is also streamlining its investment processes and providing a comprehensive support framework for investors. The government has created a system of financial and logistical assistance to help businesses navigate the complexities of licensing and operational procedures. Additionally, dedicated representatives from relevant government entities are available to guide investors through every step of the process, ensuring that they have the resources and support necessary to succeed in the rapidly growing sports sector.
Through these efforts, Saudi Arabia is positioning itself as a global leader in the sports industry. The country’s combination of economic diversification, infrastructure development, and investment incentives is creating a thriving sports ecosystem that offers lucrative opportunities for investors. As the Kingdom prepares for its role as host of the FIFA World Cup 2034, Saudi Arabia’s vision for sports will continue to unfold, attracting investment, fostering talent, and elevating the country’s global standing in the world of sports.