Saudi Sports Sector Poised for 21% Growth by 2025 with World Cup Catalyst

Saudi Arabia's burgeoning sports sector is projected to expand by 21% by 2025, reaching a size of approximately 31.6 billion riyals. This growth is driven by three key factors: increased investments, the impending 2034 World Cup, and the privatization of sports clubs, according to specialists speaking to Al-Eqtisadiah.

* 2034 World Cup: A Game-Changer

The country's successful bid to host the 2034 World Cup marks a pivotal moment, poised to attract substantial investments across various industries, thereby enhancing the sports sector's contribution to the national GDP. As noted by economic expert Fadl Al-Buainain, hosting the World Cup not only fosters the sports economy but also bolsters the broader economy through expanded government spending and private sector investment. The cost of sports projects might reach up to 11 billion riyals, intertwined with strategic developments in locations like NEOM and Qiddiya.

* Economic Diversification through Sports

Dr. Mohammed Makni of Imam University highlights the sector's role in Saudi Arabia's broader economic diversification strategy. By hosting major sports events, the Kingdom aims to enhance its international prestige while simultaneously fortifying the local economy. This approach empowers related sectors such as tourism and entertainment, contributing to job creation and investment growth.

* Infrastructure and Investment Opportunities

Investments in sports infrastructure, including stadiums and facilities, align with the country's comprehensive plan to develop the sector. These initiatives are expected to bolster employment and reduce unemployment rates. The revenue from media rights, sponsorship deals, and private sector investments further supports the national economy.

* Club Privatization and Strategic Investments

The privatization of sports clubs constitutes a critical transformation stage, integral to Saudi Vision 2030. While the past period saw the transfer of ownership of 8 clubs, Al-Buainain emphasizes the need for greater community awareness and engagement to maximize the transformation's impact.

* Attracting Major Talent and Cautious Financial Management:

Ahmed Salem anticipates heightened activity in Saudi football's transfer market, with increased investments attracting global talent, thereby solidifying the Saudi League's international reputation. However, Al-Buainain warns of potential financial imprudence in the market, stressing the importance of strategic rather than emotional investments.

As the Kingdom prepares for the 2034 World Cup, these developments signal a transformative era for Saudi Arabia's sports sector, a vital component of its strategic vision for economic diversification and global recognition.