As Saudi Arabia gears up to host the FIFA World Cup 2034, its sports sector and investments in the field are gaining significant global attention. Having hosted over 150 international sports events in recent years, including the FIFA Club World Cup in 2023 and the annual Formula 1 Saudi Arabian Grand Prix in Jeddah, Saudi Arabia is establishing itself as a leading global sports hub, backed by a robust national infrastructure.
The Kingdom is creating a dynamic environment for investors in the growing sports sector through several initiatives that fall in line with its Vision 2030. These initiatives aim to position the sports sector as a key economic pillar, diversify revenue streams and strengthen Saudi Arabia’s global standing in the sports arena.
The sector has already catalyzed significant GDP growth, increasing from SAR2.4 billion to SAR6.5 billion in just two years, a remarkable 170 percent surge. Revenues from non-governmental sports clubs surpassed SAR2 billion during the same period, signaling growing investments and interest in the local sports scene.
Roshn Saudi League’s major expansion
Ahead of the FIFA World Cup 2034, football in Saudi Arabia has emerged as a centerpiece of this investment boom, with the Roshn Saudi League (SPL) becoming the third most lucrative league globally in sponsorship revenues. Additionally, 17 investment firms have been established within the league’s clubs, and the SPL’s broadcast reach has expanded thirteenfold, growing from 10 countries in 2015 to 130 by 2023.
Under Vision 2030, Saudi Arabia is also focusing on sports to drive economic growth and improve quality of life. Football is already reaping the benefits at all levels, with over 300,000 participants in Schools League (boys and girls), 23 regional youth training centers, and 19 national teams. Football will remain a key driver for community, educational, and economic development in the Kingdom.
Saudi Arabia’s sports investments
In recent years, Saudi Arabia’s investments in sports have been significant, marked by high-profile acquisitions by the Kingdom’s Public Investment Fund (PIF) of clubs like Al Hilal, Al Nassr, Al Ittihad, and Al Ahli, along with Saudi Aramco’s acquisition of Al Qadisiyah Club and Diriyah Gate Development Authority’s acquisition of Diriyah Club.
These investments align with Vision 2030’s broader goal of economic diversification, aiming to make sports clubs financially independent and increase the sector’s contribution to the Kingdom’s GDP from $640 million in 2016 to $4.8 billion by 2030.
They also align with plans for state-of-the-art stadiums such as the King Salman Stadium and major events like the 2027 AFC Asian Cup and the 2034 FIFA World Cup, promising a bright future for Saudi sports.
Saudi Arabia is also investing in base camp hotels for teams participating in the 2034 FIFA World Cup. The Kingdom’s bid has proposed a comprehensive set of accommodation options, comprising 72 team base camp hotels, two referee base camp hotels and 60 venue-specific hotels. All hotels are paired with a training site. In total, the bid contains 134 team and referee facility pairings.
Incentives to sports investors
Saudi Arabia also offers sports investors several incentives including financial facilities, infrastructure enhancements and streamlined investment processes. The Kingdom also supports private sector growth, cultivates talent, and provides regulatory frameworks while promoting opportunities in e-sports and other emerging sports sectors.
Committed to empowering investors in the sports sector, Saudi Arabia is providing comprehensive facilities and streamlining licensing procedures. Representatives from relevant government entities are available to assist investors in completing the necessary formalities. Additionally, a robust support framework guides investors through every phase of their journey, from inception to operational launch, across various quality-of-life sectors.
Since 2016, Saudi Arabia has hosted over 100 international sporting events across more than 50 disciplines, supported by substantial infrastructure investments. These efforts present lucrative opportunities for tournament organization and sponsorship, attracting prestigious international competitions to the Kingdom.
Read| FIFA World Cup 2034 in Saudi Arabia: Complete list of 15 stadiums
World-class stadium developments
Looking ahead, Saudi Arabia is embarking on an ambitious plan to develop world-class stadiums in five key cities for the FIFA World Cup 2034 in Riyadh, Jeddah, Al-Khobar, Abha and NEOM. Saudi Arabia will be organizing the tournament across 15 stadiums.
Of these 15 stadiums, eight are planned new-builds, including the King Salman International Stadium, which is proposed as the venue for the opening match and final. Another three stadiums are currently under construction and will host the AFC Asian Cup in 2027.
Of the four existing stadiums presented, the country’s two largest current stadiums (King Fahad Sports City Stadium and King Abdullah Sports City Stadium) will undergo a number of upgrades. Meanwhile, two stadiums on university campuses (King Khalid University Stadium and King Saud University Stadium) will see major upgrades and undergo temporary capacity expansions.
To foster talent development, the Kingdom is also investing in diverse sports academies, encouraging foreign clubs to establish their own academies in Saudi Arabia, and enhancing the capabilities of existing clubs to strengthen their sports education programs.
The FIFA World Cup 2034 will significantly enhance the burgeoning tourism industry, which has seen exponential growth over the past eight years. In 2023, the number of domestic and international tourists exceeded 100 million, with the tourism and entertainment sectors rapidly developing across various destinations, including NEOM, Qiddiya, the Red Sea and Diriyah.
