Revamping the sports sector: Enhancing Saudi Arabia's economic diversity
The Sports Investment Forum, held in Riyadh earlier this month, marked a strategic partnership between the Ministry of Sports and the Ministry of Investment to drive economic opportunities in the sports sector.
The forum showcased Saudi Arabia's impressive achievements in the sports sector, driven by the implementation of Vision 2030. It also highlighted the profound transformation of the Kingdom's sports industry, fueled by substantial government support and an ambitious vision that redefined the sector as a key contributor to the national economy and a promising field for investment.
The event featured more than 50 panel discussions with around 140 domestic and international speakers. They emphasized the Kingdom's advancements in sports infrastructure, the diversification of sports disciplines, and notable economic and investment milestones.
Since the launch of Vision 2030 in 2016, Saudi Arabia's sports sector has experienced unprecedented progress, including major upgrades to facilities and infrastructure, and the growth of sector entities, now exceeding 90 organizations. These include Olympic and non-Olympic federations, governing councils, arbitration centers, specialized committees, and sports associations.
Saudi clubs have greatly benefited from substantial financial and logistical support aimed at strengthening the Kingdom's global sports presence.
Key initiatives include the Public Investment Fund's acquisition and privatization of stakes in leading clubs such as Al-Hilal, Al-Nassr, Al-Ittihad, and Al-Ahli.
I believe the Saudi government is driving a major transformation of the sports sector, developing it into a dynamic industry that contributes to the Kingdom's non-oil GDP and accelerates economic diversification
The Ministry of Sports has also invested in improving club infrastructure, developing academies, and boosting competitiveness.
Efforts to attract international football stars — such as Cristiano Ronaldo and Karim Benzema — through lucrative contracts have enhanced the Saudi league's quality and popularity, positioning it among the world's top 10 leagues by market value.
Notably, the growth of the sports sector in the Kingdom is attributed to several strategic initiatives by the Saudi government, such as the privatization of major sports clubs, the introduction of modern sports like electronic sports, and hosting globally renowned events like the Spanish and Italian Super Cups, boxing and wrestling championships, Formula One races, the Diriyah Fight Night, and international golf tournaments.
I believe the Saudi government is driving a major transformation of the sports sector, developing it into a dynamic industry that contributes to the Kingdom's non-oil gross domestic product and accelerates economic diversification.
By 2030, Saudi Arabia's sports sector revenues are expected to reach about $22.4 billion, a significant increase from the current $8 billion and less than $1.3 billion before the launch of Vision 2030.
This anticipated growth is fueled by major investments and a focus on hosting prominent international sporting events, reflecting Vision 2030's goal to position Saudi Arabia as a global center for sports and entertainment.
The projected revenues are further supported by the Kingdom's initiative to introduce 20 priority investment opportunities, spanning sports clubs, academies, sportswear and equipment, and sports facilities, with a total estimated value of up to $20 billion.
This initiative is bolstered by government-backed facilities designed to attract and support investors, offering incentives such as tax exemptions, comprehensive logistical support, accessible financing solutions, and strategic partnerships with government entities and programs.
Private sector participation is pivotal for achieving the sector's targets, with current contributions at 15 percent and ambitions to raise it to 25 percent.
In conclusion, the forum successfully opened new horizons for sports investment in the Kingdom by exploring ways to develop the sector and boost private sector participation.
It also succeeded in building effective partnerships, attracting major investments, and promoting sustainable development — all contributing to the growth of a vibrant and thriving Saudi economy.
With FIFA announcing Saudi Arabia as the host of the 2034 World Cup, along with major tournaments like the 2027 AFC Asian Cup and the 2029 Asian Winter Games, the Kingdom continues to cement its position as a global sports hub while driving growth in its non-oil economy.
• Talat Zaki Hafiz is an economist and financial analyst. X: @TalatHafiz
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