The Saudi sporting landscape is poised for an unprecedented surge in commercial opportunities, forecasted to burgeon before the Kingdom hosts the 2034 FIFA World Cup. Speaking to Arab News, Jurg Kronenberg, a partner at global management consulting firm Bain & Co., lauded Saudi Arabia’s innovative strides in the sporting sphere, predicting remarkable developments that are both innovative and disruptive.
Transforming the Kingdom into a significant player on the international sporting stage has been a focal ambition of Crown Prince Mohammed bin Salman. Saudi Arabia has already been the proud host of several major events since 2021, including high-profile boxing matches, ATP tennis tournaments, and Formula 1 racing. These milestones underscore the Kingdom’s momentum in positioning itself as a global sporting hub.
Anticipation swells as Saudi Arabia prepares to host the 2034 World Cup, a momentous event expected to provide an economic upswing to the nation. Reflecting on Qatar’s hosting of the 2022 World Cup, a Cushman and Wakefield report noted a 4 percent surge in Qatar’s GDP, catalyzed by numerous tourism and leisure projects initiated in the country.
Kronenberg forecasts that even before the 2034 World Cup, the Saudi sports sector will significantly contribute, accounting for over 1 percent of the Kingdom’s total GDP by 2030. He emphasized the sector’s expected exponential growth, attributing it to substantial investments and untapped commercial potential in the market.
Driving this transformation is Saudi Arabia’s Public Investment Fund (PIF), actively working to establish the Kingdom as a global sports and entertainment leader. PIF’s creation of SRJ Sports Investments Co. focuses on accelerating sports sector growth, encompassing acquisitions of intellectual property, commercializing competitions, and organizing major global events in alignment with Vision 2030.
The Kingdom’s football industry has undergone substantial investments, with PIF acquiring significant stakes in major football clubs. The Saudi Pro League has witnessed a remarkable 150 percent increase in attendance, drawing players from over 40 countries, with global icons like Cristiano Ronaldo expressing optimism about its potential ascent among the world’s top five domestic competitions.
Expanding beyond football, Saudi Arabia has ventured into golf with the establishment of the PIF-funded LIV Golf tour and significant strides in MMA through the Professional Fighters League, securing a multi-year media rights agreement with ESPN.
Kronenberg emphasized that these investments not only drive economic returns but also yield societal benefits, including improved health outcomes, reduced crime rates, and enhanced inclusivity.
As Saudi Arabia forges ahead in its sports development journey, characterized by strategic investments, marquee events, and international partnerships, it seeks to cultivate a robust talent pool and professionalize the sector. Challenges remain, notably in nurturing local talent and building sustainable frameworks.
The Kingdom’s dedication to sports development is undeniably making waves, set to create a lasting legacy in global sports and shape the aspirations of future generations of athletes and enthusiasts alike. As the countdown to the 2034 FIFA World Cup continues, Saudi Arabia’s sports industry is not only preparing to make headlines but is steadily evolving into a formidable force in the world of sports.
