Saudi Arabia sports sector market value rockets to US$8.5bn

The market value of Saudi Arabia’s sports sector has reached SR32 billion (US$8.5 billion) since 2016.

Confirmed:

• Saudi Arabia’s assistant minister of investment Ibrahim Al-Mubarak says country’s sports sector was worth SR5 billion (US$1.3 billion) at launch of Vision 2030
• More than 70 new sports federations have been established in Saudi Arabia since 2016
• Al-Mubarak adds that Gulf state has hosted more than 100 international championships, events and activities over the past nine years

Context:

Saudi Arabia’s Vision 2030, which launched in 2016, aims to diversify the nation’s economy beyond the oil industry, with sport a key pillar of the programme. Indeed, it has been a challenge to keep track of the kingdom’s sprawling and eclectic portfolio, which now encompasses everything from soccer and golf to boxing and esports. Saudi arguably reached its sporting zenith to date when it was confirmed last December as host of the 2034 Fifa World Cup, an event for which it was the sole bidder.

The country, though, has no plans to scale back its sports activity after nearly a decade of aggressive expansion. Indeed, according to Al-Mubarak, sport has evolved from being a complementary sector in Saudi into one that is reshaping the national economy and attracting investment, with plans in place take make it easier for investors to enter the sports market.

Comment:

“The Ministry of Investment is working in an integrated partnership with the Ministry of Sports, the Public Investment Fund, sports federations, and all relevant entities to enable investors to enter the sports market with ease and transparency, based on modern legislation,” said Al-Mubarak, who was speaking at the Sports Investment Forum in Riyadh this week.

“This is achieved through initiatives, most notably developing a map of investment opportunities in the sports sector, which includes infrastructure such as the construction of stadiums, training complexes, private clubs, and smart sports facilities; sports services such as marketing, media, sponsorship, and consulting services; sports technologies such as artificial intelligence in sports performance, rehabilitation technologies, and interactive digital platforms; and sports tourism, specialising in the development of tourism programs and packages that attract visitors to attend tournaments or practice sports in the kingdom.”

Coming next:

Al-Mubarak said that Saudi Arabia has set a target of its sports sector being worth more than SR80 billion (US$21.3 billion) by 2030.