Sports sector contributes 21.6 billion riyals to Saudi economy

According to the latest data, the sports sector contributes 21.6 billion riyals ($5.76 billion) to the Saudi economy, with a target of reaching 82.5 billion riyals ($22 billion) by 2030. The sector currently provides 22,000 direct job opportunities with plans to provide more than 165,000 job opportunities by 2030, according to the website of the Kingdom’s bid to host the 2034 World Cup.

According to the target, the contribution of the sports sector to the national economy will increase by 282% in 2030, which will increase the contribution of sports activities to the gross domestic product, with a target of increasing the number of jobs in the sector by 650%, which will enhance the contribution of the sports economy, which is one of the modern activities in the Saudi economy, in diversifying the non-oil economy, reducing unemployment rates, and increasing the gross domestic product.

The Kingdom intends to host the 2034 World Cup, as it has officially submitted its candidacy file to host, which has a positive impact on various fields such as the economy, infrastructure, investment, and tourism, as the Kingdom is working to employ all its energies and efforts to host the most prominent global events at the highest levels with the aim of establishing the spirit of competition and increasing passion for sports to raise the quality of life. Within the framework of the goals of the Kingdom’s Vision 2030 in the sports sector, the investment and privatization project for sports clubs was launched last year, to build an effective sports sector, by stimulating the private sector and enabling it to contribute to the development of the sports sector, which is based on three strategic and fundamental objectives, represented in providing an attractive environment for investment in the sector, towards achieving a sustainable sports economy, in addition to achieving organization, raising the level of professionalism and administrative and financial governance in sports clubs, in addition to working to develop the infrastructure, which is positively reflected in improving the experience of sports fans. The transfer and privatization of clubs aims to achieve qualitative leaps in various sports in the Kingdom by 2030, to create a distinguished sports generation, in addition to developing the game of football in particular, to bring the Saudi League to the list of the top 10 leagues in the world, and raise the revenues of the Saudi Professional League from 450 million riyals to more than 1.8 billion riyals annually, in addition to raising the market value of the Saudi Professional League from 3 billion to more than 8 billion riyals. Investment projects enhance the development of the sports sector, in addition to opening new horizons to bring about a qualitative shift in the sector, in line with the sports goals in the Kingdom’s Vision 2030, as they contribute to the growth of the Kingdom’s non-oil GDP, by providing many investment opportunities in the sports sector, which is one of the most important pillars of comprehensive national development that enhances economic activities. As part of the investment and privatization project for sports clubs last year, the Public Investment Fund’s ownership of a 75% stake in 4 clubs, namely: Al-Hilal, Al-Nasr, Al-Ahli, and Al-Ittihad, increased the attractiveness of the sector to investors and raised its reliability. It was also enhanced by developmental development entities, such as: Saudi Aramco, NEOM, Diriyah Gate Development Authority, and the Royal Commission for Al-Ula Governorate, so that the project constitutes a historic shift for the future of sports, moving towards global leadership. It is noteworthy that the Ministry of Sports announced the offering of six sports clubs for privatization to local and international investors, namely: Al-Zulfi, Al-Nahda, Al-Akhdoud, Al-Ansar Al-Arabiya, and Al-Khulud), where investors wishing to compete for these clubs can enter the investors’ portal, through the National Center for Privatization website to apply, and obtain the necessary conditions and information starting from the beginning of next August, to be followed by the completion of the offering of the remaining eight clubs in succession, namely: (Al-Sha’la, Hajr, Al-Najma Al-Riyadh, Al-Rawdah, Jeddah, Al-Taraji, and Al-Sahel). This contributes to raising the efficiency of sports clubs and enhances investment and sports professionalism. It also embodies the interest that the Kingdom attaches to developing the sports sector and supporting competitiveness in order to achieve the goals of the Kingdom’s Vision 2030.