Saudi Arabia is quickly becoming a major global sports hub, hosting events across Formula One, boxing, golf, and the FIFA World Cup. In addition to staging top-tier events, the Kingdom’s push is a crucial element of its economic diversification strategy, “Vision 2030.”
Saudi Arabia has secured the right to host significant athletic events, such as the LIV Golf Tour, tennis, and motorsports, aiming to increase tourism, open up business opportunities, and generate revenue from sponsorships, ticket sales, and television rights.
Peter Daire, senior executive advisor for sports at PwC Middle East, emphasised the Kingdom’s long-term goal of using sports as a substantial economic engine.
He said, “According to our Global Sports Survey 2023, the Middle East sports sector, including Saudi Arabia, is expected to generate substantial economic value, with Saudi Arabia’s sports economy predicted to contribute up to $5.9 billion by 2030.”
“This growth is driven by ongoing infrastructure projects and the expansion of world-class facilities across the Kingdom. Additionally, events such as Formula E, the Saudi International Golf Tournament, esports investments, and high-profile football matches in the Saudi Pro League have played a leading role in attracting global attention and investment, further boosting the tourism and hospitality sectors,” Daire added.
Jurg Kronenberg, a management consultant at Bain and Co., pointed out that by 2030, sports are expected to account for 10.5% of Saudi Arabia’s non-oil GDP, generating more than 140,000 jobs.
“Achieving this growth will require both infrastructure investments — such as World Cup stadiums and mass sports facilities — as well as sector activation, through privatisation and professionalisation of sports, new leagues and competitions, and the creation of local intellectual property,” Kronenberg said, while adding, “Sports have a unique potential to be the catalyst for societal and economic change in Saudi Arabia and to support the development of a vibrant economy.”
Kronenberg further stated that the Kingdom aims to create over 140,000 jobs in the sports industry by 2030, contributing to 0.5% of its non-oil GDP.
In order to create a thriving sports business ecosystem, Daire emphasised that the government has prioritised the private sector’s participation.
“Partnerships with European football clubs and players have helped position Saudi Arabia as a central player in the international sports landscape. Additionally, developing local talent within the Kingdom and ensuring a long-term legacy of Saudi sports business expertise are key to the sector’s growth,” he observed.
He pointed out that the integration of advanced technologies, including artificial intelligence (AI), data analytics, and digital media, into fan interaction and sports management is driving expansion in several industries.
Mega investments
Kronenberg noted that the 135-kilometre Sports Boulevard in Riyadh and the 11 cutting-edge stadiums planned for the FIFA World Cup 2034 are examples of landmark projects that are part of Saudi Arabia’s sports strategy.
In addition to well-known venues, massive infrastructure projects are being planned to promote mass participation in sports and provide financial incentives for clubs to become professional.
“In football, a bold privatisation initiative is underway, transitioning historically state-owned clubs to private ownership. Beyond football, Saudi Arabia is cultivating a diversified sports ecosystem, investing in the professionalisation of several existing sports and supporting emerging disciplines,” Kronenberg said.
According to Kronenberg, this strategy is accelerating economic diversification by generating valuable intellectual property, new investment opportunities, and new revenue streams.
Federico Pienovi, CEO of Globant for APAC and MENA, emphasised Saudi Arabia’s strategic investment of more than $2 billion in international collaborations, sports infrastructure, and events.
“With major events like the Asian Games and FIFA World Cup 2034 on the horizon, the Saudi government is shaping a multi-billion-dollar sports ecosystem primed for growth,” Pienovi said.
He clarified that Saudi Arabia’s giga-projects, such as Qiddiya Entertainment City, are excellent examples of bringing cutting-edge technology and a passion for sports together, transforming the Kingdom into a top travel destination.
The Saudi Pro League’s international profile has been enhanced by the signing of global stars like Karim Benzema and Cristiano Ronaldo, drawing sponsors and increasing viewership, according to Shahid Khan, partner and global head of media, entertainment, sports, and culture at Arthur D. Little.
“Developing league infrastructure and operations supports the league’s competitive edge and market value. These investments increase tourism, promote national pride, and inspire local talent to pursue professional football careers. These initiatives further integrate Saudi Arabia into the global football ecosystem, bringing in money from sponsorships and broadcasting,” he said.
The Kingdom is further integrating forward-thinking strategies into its sports vision, as noted by Ivan Shapochkin, a principal at Oliver Wyman’s Dubai office, who highlighted that the global sports industry is predicted to reach nearly $1 trillion by 2030.
“By quadrupling its sports economy by 2030, with private sector contributions driving at least 25%, Saudi Arabia is reaping direct revenues from ticket sales, media rights, sponsorships, and merchandising. Beyond this, sports are invigorating tourism, hospitality, and transport sectors, creating ripple effects across the broader economy,” Shapochkin said.
According to Bain and Co.’s Kronenberg, the sports industry offers a unique opportunity for investors and entrepreneurs to influence the market and outperform others due to its early stages in Saudi Arabia.
“This might include use cases like new ownership models, fan engagement through tokenization, unique voting rights, or new channels and technologies to stream matches,” he said.
A young, tech-savvy population combined with an environment that fosters a “clean slate” approach to technology implementation makes the Kingdom a promising testbed for various new technologies, according to Kronenberg.
Saudi Arabia is embracing digital transformation in sports, integrating blockchain, AI, and virtual reality to enhance athlete performance and the fan experience, according to Daire of PwC.“
According to our latest esports report, ‘Centre of the Game,’ technology is enabling smarter sports management, real-time data analysis for performance improvement, and immersive fan experiences, from virtual stadium tours to personalised content,” he said.
“This transformation is not only improving operational efficiencies within the sports sector but also generating new revenue streams, such as data-driven sponsorships and virtual fan engagement platforms,” Daire added.
Sports-tech on the rise
According to Shapochkin of Oliver Wyman, one in three sports fans worldwide now watches games on digital platforms, indicating a shift toward more individualised, tech-driven interaction.
“The sports-tech market is expected to surpass $40 billion by 2027, driven by innovations like AR/VR (Augmented Reality/Virtual Reality), performance tracking, eSports, and AI-powered analytics. Saudi Arabia, with its youthful, tech-savvy population and strategic investments through entities like SAVVY Gaming Group and PIF (Public Investment Fund), is at the forefront of this shift,” Shapochkin concluded.