Saudi Arabia is increasingly positioning itself as a global sports hub, securing hosting rights for a variety of major sporting events, including Formula One, boxing, tennis, and the FIFA World Cup.

This initiative is aligned with the Kingdom's Vision 2030, a comprehensive strategy aimed at diversifying the economy beyond oil dependence.

The strategic push into sports is expected to significantly boost tourism and create business opportunities.

According to Peter Daire, senior executive advisor of sports at PwC Middle East, the sports economy in Saudi Arabia is projected to contribute up to $5.9 billion by 2030. This anticipated growth is attributed to ongoing infrastructure projects and the development of world-class facilities.

High-profile events such as Formula E, the Saudi International Golf Tournament, and a series of football matches in the Saudi Pro League have attracted global attention and investment, benefiting the tourism and hospitality sectors.

Additionally, Jurg Kronenberg, a management consultant at Bain & Co., stated that the government aims to derive 1.5 percent of its non-oil gross domestic product (GDP) from sports by 2030, potentially creating over 140,000 jobs.

To achieve this, investments in infrastructure, including World Cup stadiums and mass sports facilities, and the privatization of state-owned sports clubs are crucial.

The Saudi government is encouraging private sector involvement to develop a vibrant sports business ecosystem.

Partnerships with European football clubs and players have positioned the Kingdom prominently in the international sports landscape.

Daire noted the importance of nurturing local talent and ensuring the legacy of sports expertise within Saudi Arabia.

Saudi Arabia's sports strategy encompasses landmark infrastructure projects, including 11 planned stadiums for the FIFA World Cup in 2034 and a 135-kilometer Sports Boulevard in Riyadh.

In addition to these venues, significant investments are being made to foster mass sports participation.

Federico Pienovi, chief business officer and CEO for APAC and MENA at Globant, stated that Saudi Arabia has invested over $2 billion in sports infrastructure, events, and global partnerships as it prepares for significant upcoming events like the Asian Games and the FIFA World Cup.

The country's advancements in giga-projects such as Qiddiya Entertainment City are expected to merge technological innovation with sports, positioning the Kingdom as a world-class destination.

The signing of international sports stars, including Cristiano Ronaldo and Karim Benzema, has elevated the profile of the Saudi Pro League, boosting sponsorship deals and overall viewership.

Shahid Khan, partner and global head of media, entertainment, sports, and culture at Arthur D. Little, explained that these developments are enhancing the league’s infrastructure and operations, with spillover effects on national pride and local talent development.

The global sports market is projected to near $1 trillion by 2030, and Ivan Shapochkin, a principal at Oliver Wyman, highlighted that Saudi Arabia's goal of quadrupling its sports economy by that time is reinforced by contributions from the private sector, anticipated to drive at least 25 percent of growth.

As sports activities proliferate, the opportunities for entrepreneurs and investors within Saudi Arabia's burgeoning ecosystem are increasing.

Kronenberg noted potential innovations in areas such as fan engagement, new ownership models, and advanced streaming technologies, positioning the Kingdom as a fertile ground for sports-tech advancements.

Daire pointed out that Saudi Arabia is embracing digital transformation within sports, integrating AI, virtual reality, and blockchain technology to enhance athlete performance and improve the fan experience.

The incorporation of such technologies is anticipated to improve operational efficiencies and generate new revenue streams, including data-driven sponsorships.

Shapochkin identified a notable trend in the sports industry where one in three sports fans now accesses events through digital platforms, signifying a shift toward more personalized engagement.

The sports-tech market is forecast to surpass $40 billion by 2027, bolstered by innovations such as augmented reality (AR), performance analytics, and eSports.

As Saudi Arabia continues to host significant sporting events, including the Asian Winter Games in 2029 and the FIFA World Cup in 2034, the integration of smart venues and advanced crowd management technologies will likely expedite this transformation.

Through its multifaceted approach, Saudi Arabia is not only redefining its role in the global sports arena but also shaping the future landscape of the sports business.