Launch Your Sports Business in Saudi Arabia's Global Sports Hub

INTRODUCTION

Sports have played a crucial role in shaping Saudi society since the 1950s, becoming deeply ingrained in the country's cultural identity. The Crown Prince's goal of making the Saudi football league one of the world's top 10 is a clear indication of the Kingdom's commitment to sports.
Introduced in May 2018 with the aim of achieving this objective, the Quality of Life Program places a strong focus on sports. Several initiatives within the program aim to encourage broad participation, improve the performance of Saudi athletes in global competitions, and stimulate the growth of the sports economy. This strategic decision is in line with Saudi Vision 2030, which seeks to establish Saudi Arabia as a prominent nation with a dynamic economy and a flourishing society.

OVERVIEW OF THE SAUDI SPORTS INDUSTRY

• Saudi Arabia understands the value of serving its greatest demographic, with roughly 70% of the population under 30. By promoting a balanced, physically and socially healthy lifestyle, Vision 2030 aims to create a vibrant society. With a projected valuation of $5.75 billion in 2022, the sports industry is expected to grow rapidly and reach $22.2 billion by 2030. The government has made significant investments in sports, including football, Formula 1, golf, winter sports, and tennis, totaling more than $6.3 billion since 2021.
• The sporting event market is expanding at a remarkable 8% annual rate, suggesting a healthy and vibrant business. According to the Ministry of Sport and Ministry of Tourism, the sports industry currently makes up around 0.2% of the Kingdom's GDP, while the tourism industry accounts for about 3%. Both ministries have set high growth goals: by 2030, tourism is predicted to account for 10% of GDP, while sports is expected to contribute 0.6%.

KEY INITIATIVES TO BOOST SAUDI SPORTS SECTOR

In order to promote the development of the sports industry, Saudi Arabia's Public Investment Fund has created SRJ Sports Investments. Our investment company is dedicated to acquiring and developing intellectual property rights for sports events, commercializing popular competitions, and hosting major global sporting events. The emphasis on activities that engage fans and the use of transformative sports technology is in line with Vision 2030's dedication to fostering a lively society through promoting a healthy lifestyle.
Efforts to encourage women's involvement in sports and the ongoing enhancement of sports facilities reflect a dedication to inclusivity and ongoing progress in the sports industry. The launch of the 'Sports Clubs Investments and Privatisation Project' represented a major achievement as the Public Investment Fund (PIF), Saudi Arabia's sovereign wealth fund, took over the management of four SPL clubs—Al-Ahli, Al-Ittihad, Al-Hilal, and Al-Nassr. This calculated move not only changed ownership, but also gave the clubs a significant financial boost from a sovereign wealth fund with assets nearing 800 billion US dollars.

• Over the next five years, there will be investments of US$2 billion in the sports industry.
•  We are fully committed to supporting sports clubs in their journey towards privatization, with a financial commitment of US$670 million.
• Through sponsorships with various clubs, the private sector has pledged an investment of US$320 million until 2023.

MAJOR SPORTING EVENTS IN SAUDI ARABIA

• Direct economic impact, increased interest in sports, tourism development, entertainment, enhanced national image, and a sense of pride and unity among Saudis are among the numerous benefits that hosting sporting events yields. The Kingdom's objective of nurturing social and economic development and promoting a healthy lifestyle is furthered by these events.
• The Saudi Arabian Grand Prix, Joshua v Ruiz II – "Clash on the Dunes," and the Saudi Cup international horse racing event are among the high-profile competitions that Saudi Arabia has hosted, distinguishing it as a significant actor in global sports. The Kingdom's intent to promote its sports infrastructure and increase sports tourism, thereby substantially contributing to the economy, is exemplified by its bid to host the FIFA World Cup in 2030.

• The Middle East has witnessed a significant increase in the popularity of mixed martial arts (MMA), with Saudi Arabia functioning as a hotbed for the discipline. The hosting of significant sporting events is intended to accentuate Saudi Arabia's cultural diversity, attract foreign direct investments, and promote tourism.

 ESPORTS IN SAUDI ARABIA

Saudi Arabia has made significant investments in developing its esports scene, acknowledging its widespread popularity worldwide. The establishment of the Saudi Esports Federation and the launch of the Gamer8 Festival showcase the Kingdom's dedication to this growing industry. The Public Investment Fund's decision to allocate $37.8 billion for esports and gaming highlights the immense potential for growth and development in this industry.

UPCOMING SPORTS EVENTS IN SAUDI ARABIA

Saudi Arabia's dedication to sports is clearly demonstrated by their upcoming event hosting. These events have a positive impact on the country's international reputation and play a significant role in boosting the economy by attracting tourists and promoting infrastructure growth.

SPORTS TOURISM IN SAUDI ARABIA

• Saudi Arabia's dedication to sports is clearly demonstrated by their upcoming event hosting. These events have a positive impact on the country's international reputation and play a significant role in boosting the economy by attracting tourists and promoting infrastructure growth.

The country is known for hosting international tennis and golf tournaments, as well as high-profile football games. The Saudi football team has achieved great success, winning the Asian Cup three times. In 2020, the global sports tourism market reached a valuation of $323.4 billion. Saudi Arabia's significant investment in NEOM, which will host cutting-edge sporting events, showcases the Kingdom's dedication to establishing itself as a premier global sports destination.

START YOUR SPORTS BUSINESS IN SAUDI ARABIA WITH CIG SAUDI ARABIA

The Kingdom is positioned as a vibrant and alluring hub for the international sports business community due to its dedication to organizing significant athletic events, fostering sports tourism, and embracing cutting-edge trends like esports. The private sector offers a plethora of options for global and local firms, with the sports industry expected to surpass $3 billion by 2024. The benefits of Saudi Arabia's continued investment in and emphasis on its sports sector are expected to be felt in many sectors of the economy and society.
Begin your athletic endeavors with CIG Saudi Arabia. We manage the licensing procedure for you, providing knowledgeable advice that complies with regional laws.