Saudi Gazette report

RIYADH — Assistant Minister of Investment Ibrahim Al-Mubarak said that the market value of the Saudi sports sector at present has reached SR32 billion compared to less than SR5 billion at the time of the launch of Saudi Vision 2030 in 2016.

In a speech, delivered on behalf of Minister of Investment Khalid Al-Falih, at the first Sports Investment Forum in Riyadh on Monday, he said that the target for this sector is to reach more than SR80 billion by 2030. "Sports have become an integrated economic sector with a legislative structure, financial governance, and investment areas and models that open promising horizons for national and international companies," he said.

The forum, which began at Riyadh Ritz Carlton on Monday, is co-sponsored by the Ministry of Investment and the Ministry of Sports.

Al-Mubarak said that the rate of sports practiced in the Kingdom has increased from 13 percent to 48 percent currently since the launch of the Vision 2030. "More than 70 new sports federations have been established since 2016, overseeing activities covering various Olympic and non-Olympic sports, reflecting the diversity of the Saudi sports sector. Saudi Arabia has hosted more than 100 international championships, events, and activities," he said.

Al-Mubarak noted that the sports sector in the Kingdom is progressing steadily toward becoming a promising and rewarding investment area for investors from within the Kingdom and abroad. He emphasized that the Ministry of Investment believes that sports in the Kingdom have become an essential element in building the modern economy, shaping human capital, and building national identity.

Al-Mubarak said that sports have gone beyond being a complementary sector, becoming a real opportunity to contribute to reshaping the national economy, attracting investment, and building new value chains. "The Ministry of Investment is working in an integrated partnership with the Ministry of Sports, the Public Investment Fund, sports federations, and all relevant entities to enable investors to enter the sports market with ease and transparency, based on modern legislation. This is achieved through initiatives, most notably developing a map of investment opportunities in the sports sector, which includes infrastructure such as the construction of stadiums, training complexes, private clubs, and smart sports facilities; sports services such as marketing, media, sponsorship, and consulting services; sports technologies such as artificial intelligence in sports performance, rehabilitation technologies, and interactive digital platforms; and sports tourism, specializing in the development of tourism programs and packages that attract visitors to attend tournaments or practice sports in the Kingdom," he said.

Al-Mubarak said that various incentives are offered to investors, such as exemptions, logistical support, financing facilities, and partnerships with government agencies and programs. He also noted the establishment of specialized business centers within and outside the ministry to support investors in the sports sector and other sectors from the establishment stage to operation and expansion, while providing information and studies.

He pointed out that a sector-specific investment plan for sports was developed in 2021, including a comprehensive study of 88 investment opportunities, including a complete map of value-added chains in the sports sector. Twenty of these priority opportunities were identified, including sports clubs, academies, apparel, sports equipment, and sports facilities, with a total value of up to SR20 billion. Within this framework, the Kingdom is currently preparing to host the AFC Asian Cup in 2027 and the World Cup in 2034. It aspires to become a global hub for sporting events through sustainable investments, world-class infrastructure, and an integrated and supportive legislative system.

In a speech delivered on behalf of Minister of Sports Prince Abdulaziz bin Turki, Deputy Minister of Sports Badr Al-Qadi stated that the leadership's support for the sports sector has contributed to the development of the sports system through the implementation of development plans that have achieved sustainable growth, under the continuous supervision of the minister of sports.

He stated that sports and investment are two sides of the same coin. Sports have become an industry in leading countries around the world, and an important area for achieving investment and strategic goals by promoting economic growth and creating opportunities in an attractive environment that contributes to the growth of the present and the building of the future.

Al-Qadi noted that this forum is a prominent platform and an important opportunity that brings together leaders, decision-makers, and investors in one place, given the growing global interest in the growth of sports investment and the opportunities it provides.

The Sports Investment Forum witnessed the signing of several agreements, including a memorandum of understanding between the Saudi Cycling Federation and the Hail Region Development Authority, and agreements between the Ministry of Investment and several companies.

The three-day forum, which will conclude on Wednesday, aims to boost sports investment in Saudi Arabia by focusing on the development of the sports sector and increasing private sector participation through partnerships and major investment opportunities. It also seeks to promote sustainable development and contribute to the national economy.

Key agreements are anticipated to be finalized during the event, and new initiatives aimed at benefiting the Saudi sports sector will be unveiled. Panel discussions will include officials from both local and international sports and investment sectors.

More than 50 workshops are scheduled, with approximately 120 international speakers addressing key topics related to sports investment, including projects, intellectual property, artificial intelligence, innovation, sports media, and e-sports.