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Arab News
27-04-2025
- Business
- Arab News
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
The National
14-04-2025
- Business
- The National
'Time to go global' - Saudi Arabian football poised to make a mark on the world stage
Al Nassr sporting director and former Real Madrid captain Fernando Hierro believes Saudi Arabia's football evolution is not only here to stay but ready to lead a new era for the global game. Speaking at the Sports Investment Forum in Riyadh – as part of a panel titled Developing the Market Value of Sports Club – alongside Al Hilal CEO Esteve Calzada, Hierro said the Saudi Pro League is not only attracting global stars, but commanding worldwide attention, helping to transform the SPL from a buyer's league into an exporter of talent to rival the world's best. 'This league is calling the world,' Hierro said. 'It's not just Saudi clubs going abroad to find players, now European scouts are coming here, looking for Saudi talent. That tells you something.' Hierro, who was one of the first major international players to join Qatar's league more than 20 years ago, said the evolution taking place in Saudi has been extraordinary. 'This project is just two years old. And yet look at the infrastructure, the global reach, the talent,' he said. 'There's already so much work behind it. It's only just beginning.' The former defender, who spent 14 years at Real Madrid and made 89 appearances for Spain, highlighted Al Nassr's new approach to recruitment as proof of their change in strategy. The club, which helped kick-start the Saudi football transformation by signing Portuguese superstar Cristiano Ronaldo in December 2022, have focused more on signing younger talents this season, with an average age of 23.6 years. The strategy reflects a wider change in the SPL, where this season the average age of players signed was 24.9, down from 25.4 in 2023/24. 'We've signed five players under 25, including Brazilian international Bento, teenagers Angelo and Wesley, and Jhon Duran who is only 21,' Hierro said. 'We're not just buying, we're creating value. Saudi clubs can become exporters, too.' Calzada, CEO of Al Hilal and former chief commercial officer of City Football Group, echoed Hierro's sentiment, saying the SPL is perfectly placed to grow into a global football powerhouse. 'Al Hilal have been very successful domestically, but now it's time to go global,' Calzada said. 'If we want international fans and sponsors, we need to ensure maximum distribution of our product.' Broadcasting is the key area of growth, Calzada explained, with SPL matches now available in 200 countries. 'We've already monetised the key assets – shirt deals, LED boards – so now we must evolve. The focus is digital and social, reaching younger fans where they are.' Calzada said clubs like Al Hilal are already reaping the benefits of football's global pull. The club made international headlines with the league record signing of Neymar last summer, and while the Brazilian has moved on after an injury-disrupted 18 months, the Riyadh giants remain Saudi Arabia's most recognisable club, both locally and abroad. 'This is the most popular sport in the kingdom, and Al Hilal is the most popular team,' he added. 'If you want to reach the Saudi consumer, there is no better channel [than football].' With Saudi Arabia set to host the 2034 Fifa World Cup and Al Hilal confirmed as the kingdom's sole representative at the expanded 32-team Fifa Club World Cup in the United States this summer, the spotlight on Saudi football is only intensifying. Al Hilal will open their tournament against Real Madrid in Miami before matches against Mexican side Pachuca and perennial Austrian champions Red Bull Salzburg. The tournament is therefore a prime opportunity for Hilal to showcase both the quality of Saudi football and boost their own profile. 'The Club World Cup is an extraordinary opportunity for Al Hilal to showcase our brand on the global stage,' said Calzada. 'It's the first edition in this new format, and we'll be competing against some of the best clubs in the world in front of massive global audiences. It's a moment of pride for the club and for the league.' Calzada emphasised the importance of performing well in the tournament to reinforce the SPL's international ambitions. 'It's not just about being there, it's about showing that Saudi clubs can compete at the highest level. We want to prove we belong.' Facilities were also a recurring theme in the panel. 'For me, the development of youth players starts with three things,' said Hierro. 'Good facilities, quality coaching, and strong competition. But above all, facilities matter.' With 48 teams arriving in the kingdom for the 2034 World Cup, he insisted – and expects – that the training infrastructure must be world-class. 'Each nation will need their own base. We must show the world that we're ready, not just to host, but to lead.' Calzada agreed, pointing to the Kingdom Arena, Al Hilal's current temporary home, as an example of how infrastructure supports growth. 'It's the biggest indoor grass football stadium in the world. We don't own it, but tactically, it's ours and it's helping us build a fan base and create a world-class experience.' Held under the banner of 'Investing in the Future of Sport,' the Sports Investment Forum had over 3,000 attendees and featured leaders from global leagues, clubs, and agencies. The forum highlighted how Saudi Arabia's sports sector is now surging with private investment, global partnerships, and international acclaim. According to official figures, the number of registered sports organisations and private clubs in the kingdom has more than doubled in recent years, supported by a strategic plan to increase private sector contribution to 25 per cent of the sports economy. Deloitte Middle East Partner Robin Butteriss believes Saudi football's financial trajectory is only heading one way: up. 'The current SPL broadcast deal is worth around $80 million a year,' Butteriss said. 'By 2030, I expect that to at least double – perhaps even triple – as international distribution improves.'
CairoScene
10-04-2025
- Business
- CairoScene
Saudi Tourism Licenses Surge 390% Ahead of 2034 World Cup
Saudi Arabia sees a surge in tourism activity following its successful bid to host the 2034 FIFA World Cup. Tourism licences in Saudi Arabia have surged by 390% since the Kingdom was awarded the rights to host the 2034 FIFA World Cup, according to Vice Minister of Tourism Princess Haifa bint Mohammed Al Saud. Speaking at the Sports Investment Forum in Riyadh, she highlighted the growing investor interest in the Kingdom's tourism sector, particularly as international focus sharpens ahead of the global tournament. The increase in licences is part of a broader movement across the private sector to prepare for a significant influx of global visitors, as Saudi Arabia scales up its hospitality and infrastructure in line with Vision 2030. The forum underscored how sports are being leveraged as a driver of economic diversification, with the upcoming World Cup expected to play a key role. Analysts have estimated that hosting the tournament could contribute between USD 9 billion and USD 14 billion to the national GDP. Projections also indicate that the event could create up to 1.5 million jobs and accelerate the development of 230,000 hotel rooms across five cities. According to FIFA reports, hosting the World Cup entails significant operational costs, including USD 378.4 million for television operations and USD 273.8 million for staffing and workforce requirements. The three-day Sports Investment Forum, running through April 9th, brings together public and private stakeholders exploring the Kingdom's evolving sports ecosystem and its role in economic transformation.
Asharq Al-Awsat
10-04-2025
- Business
- Asharq Al-Awsat
Al-Mouallimi at the Investment Forum: SRMG Committed to Advancing Saudi Sports Media
The Sports Investment Forum concluded its sessions on Wednesday, featuring high-level participation from global leaders in the field of sports investment. On the final day, senior officials explored the role of sports media as both a strategic national tool and an economic driver, with a focus on the challenges and opportunities shaping this rapidly growing sector. Bassil Al-Mouallimi, Chief Strategy Officer at the Saudi Research and Media Group (SRMG), emphasized that media success is closely tied to the growth of the sports economy. He highlighted broadcasting rights as one of the most critical revenue streams in sports, with media playing a pivotal role in amplifying and promoting athletic events. Al-Mouallimi noted that the core value of media in sports lies in sustained coverage before and after matches and tournaments—something SRMG is dedicated to providing across all its platforms. He described sports as 'the most authentic form of local content,' due to their universal appeal and the strong emotional connection they foster with audiences. He stressed the importance of storytelling in sports journalism and content creation. Addressing the evolving landscape, Al-Mouallimi pointed to the challenges posed by AI in content production while urging industry professionals to seize the vast potential it offers. Speaking about SRMG's role, he said: 'We've dedicated several of our publications—including Asharq Al-Awsat, Manga, Arriyadiyah, Al-Eqtisadiah, and Thmanyah—to support sports media and contribute to the development of its economic ecosystem.' Saudi Viewers and the Future of Sports Broadcasting Fahad Al-Ahmad, Chief Operating Officer of SSC Channels, stated that Saudi Arabia's sports sector is currently undergoing a phase of remarkable growth, supported by forward-thinking regulations and a massive fan base. This, he said, positions the Kingdom as a global hub for major international sporting events. During a session titled 'Television Broadcasting and the Future of Sports Streaming', Al-Ahmad observed a rising demand for sport-specific content, reflecting the maturity of the Saudi viewer and their growing interest in technical and analytical depth. He described this trend as a promising opportunity to expand the reach and quality of sports broadcasting. Al-Ahmad called for greater investment in media talent: 'We need specialized training programs for each sport. With over 90 sports federations and a passionate generation of Saudi youth, we can build a professional media system capable of delivering world-class coverage.' Content Quality and Media Responsibility Turki Alajmah, presenter at Rotana Channels, stressed the importance of maintaining high standards in media production. He warned against treating television like social media, emphasizing the need for professionalism, credibility, and editorial integrity. 'Content quality remains the cornerstone of trust between media and the public,' Alajmah said. 'A media professional's role is not just to entertain, but to inform and shape public understanding.' He also pointed to challenges facing local media, including limited access to athletes and events due to a lack of broadcasting rights and the increasing appearance of sports figures on international platforms—factors that weaken local media's influence and reach. TikTok Launches Saudi Sports Program Mohamed Harb, Director of Partnerships at TikTok for the Middle East and North Africa, announced the launch of a dedicated Saudi sports program on the platform. He stated that the initiative would significantly boost engagement across a range of sports and increase visibility for athletes and clubs on a larger scale. Navigating the Digital Shift in Sports Media In a session titled 'Sports Media: Between Challenges and Aspirations', Adel Alzahrani, Deputy Minister of Sports for Media and Marketing, discussed the ongoing disruption brought by social media and digital platforms. He emphasized the importance of adapting to these changes to maintain relevance and visibility. Alzahrani underlined the need for deep audience research, noting that consumption patterns and communication habits have evolved. Understanding platform algorithms and engagement mechanisms, he said, is now essential to crafting effective media strategies.
Arab News
09-04-2025
- Business
- Arab News
Record licensing and new infrastructure drives unprecedented growth in Saudi sports sector
RIYADH: Strategic investment is fueling a world-class sports ecosystem in Saudi Arabia, as highlighted this week at the Sports Investment Forum in Riyadh. Held under the joint patronage of the Ministry of Sport and the Ministry of Investment, the event has drawn together more than 3,000 media professionals, 140 speakers and representatives from more than 100 sports agencies and channels from 60 countries. Key themes on the first day included innovation and technology in sports, sustainable sports development, empowering women in sports, global partnerships and economic growth, and sports for health and social impact. A highlight was a ministerial panel discussion, 'From Vision to Execution — Government Integration to Achieve Sports Investment Growth Goals.' Taking part were Deputy Sports Minister Badr Al-Qadi, Deputy Tourism Minister Princess Haifa Mohammed Al-Saud, and Ibrahim Al-Mubarak, assistant investment minister. The session emphasized the importance of cross-governmental collaboration in driving sector growth and attracting private investment. 'There is no doubt that sports and investment are two sides of the same coin,' said Al-Qadi during the opening ceremony. 'Sports have now become a leading industry globally, playing a crucial role in achieving investment and strategic goals, enhancing economic growth and creating opportunities within an attractive environment. We anticipate further significant announcements and partnerships to emerge from the Sports Investment Forum in the coming days.' Al-Qadi also highlighted the Ministry's commitment to increasing private sector participation in sports, stating an ambition to increase the current level of 15 percent to 25 percent. This goal is being supported by a range of initiatives, including streamlined licensing processes — something which has already led to a boost in new sports facilities. As of 2024, the Kingdom is home to 2,423 licensed gyms and sports centers, 737 academies and 285 private clubs, underlining the growing accessibility and appeal of sports across the country. To support this growth, world-class sports infrastructure is being actively developed across the Kingdom, with projects underway in key cities with passionate sports communities. A proposed sports complex in Taif will encompass 34,650 sq. meters with 23 indoor and outdoor courts, while a complex Makkah's King Abdulaziz Sport City features 14 indoor and outdoor courts.
