Prepared by: Dr. Manahi Al-Shibani

Sports investment in Saudi Arabia is no longer a luxury, but a strategic industry aiming at a $22 billion market value by 2030. This transformation is backed by bold national initiatives and privatization projects, setting the stage for a globally competitive sports economy.

Why Invest in Sports?

Globally, sports have become one of the most profitable industries. Investments in clubs, athletes, events, and infrastructure yield significant returns through media rights, sponsorships, ticket sales, and brand partnerships. In addition to commercial gains, sports investments contribute to social development and national identity.

Current Market and Future Projections

The current market value of the sports sector in Saudi Arabia stands at SAR 30 billion ($8 billion).

By 2030, this is expected to grow to SAR 85 billion ($22.5 billion).

In 2024 alone, 40 sports investment deals were completed, with 25% being foreign investments.

To prepare for hosting the 2034 FIFA World Cup, the government plans to inject an additional SAR 100 billion ($26.7 billion) into the sector.

Government Support

Annual public support for the sports sector exceeds SAR 60 billion.

Major investments come from entities such as the Public Investment Fund (PIF) and Aramco.

The government supports infrastructure, event hosting, club development, and private sector engagement.

Strategic Objectives

Increase private sector participation.

Market tangible and intangible assets across all cities.

Stimulate sports industries beyond football, including tech, medicine, and event management.

Boost GDP contribution and sports participation rates.

Economic Impact

Sports sector contribution to GDP rose from SAR 2.4 billion to SAR 6.5 billion between 2020 and 2021—a 170% increase.

Non-governmental revenue for professional league clubs exceeded SAR 1.8 billion in two years.

Over 20,000 direct and 60,000 indirect jobs were created.

Privatization and Club Ownership

In June 2023, HRH Crown Prince Mohammed bin Salman launched the Sports Club Investment and Privatization Project, aimed at building a sustainable, globally recognized sports economy. Key actions include:

Transferring club ownership to major companies and development entities (e.g., Aramco, NEOM, Royal Commission for AlUla).

PIF acquired stakes in major clubs like Al Hilal, Al Nassr, Al Ittihad, and Al Ahli.

In July 2024, 14 clubs were approved for privatization across professional and lower-tier leagues.

Platforms and Licensing

Nafes Platform, launched in 2021, streamlines licensing for private clubs, academies, and gyms.

Over 2,270 licenses issued for fitness centers.

Licenses span a wide range of sports from football and swimming to esports and martial arts.

Supporting SMEs and Innovation

Campaigns like "We Complete Each Other to Make a Difference" link sports clubs with SMEs.

Over 126 SMEs are now official sponsors of football clubs.

New tools are being introduced to help SMEs tap into the sports economy.

Governance and Integrity

The International Conference on Governance and Compliance (2020) addressed transparency and integrity in sports.

New regulations promote efficient financial management and fair market competition among clubs.

Conclusion

Saudi Arabia’s sports investment strategy is creating a model for regional and global economies. With robust governmental backing, clear regulatory frameworks, and an open door for foreign and private investments, the Kingdom is positioning itself as a global hub for sports, innovation, and economic transformation.