Inside Saudi Arabia's relentless drive to become a global sporting leader
Kingdom is on a mission to rapidly diversify its economy, in part through developing its sport and tourism sectors and promoting local employment
Saudi Arabia’s interlocked focus on promoting sport, an active lifestyle and tourism is driving infrastructure creation that is in turn helping the kingdom achieve its ambitious Vision 2030 goals.
The kingdom is on a mission to rapidly diversify its economy, in part through developing its sport and tourism sectors and promoting local employment.
“Between participation, high-profile events, tourism, and a healthy, active lifestyle agenda – all those points – work well with each other,” said Charlie Beauchamp, who was recently appointed as CSM Sport & Entertainment’s inaugural country manager in Saudi Arabia.
“They're increasingly hosting large sports events from across the world. And I think the link that they're making with tourism is an important one,” he added.
Saudi Arabia’s focus on sport is intrinsically linked to the kingdom’s Vision 2030. Diriyah Season, back in 2019, included events like the Diriyah E-Prix, the Diriyah Equestrian Festival and Diriyah Music Festival.
Among a myriad of other sporting events, the kingdom also hosted the Andy Ruiz-Anthony Joshua fight when thousands of fans from more than 60 countries filled a purpose-built 15,000-seat Diriyah Arena in the heart of the UNESCO World Heritage site.
Saudi staged its first European Tour golf event, the Saudi International, in 2019; while the kingdom hosted the Dakar Rally in 2020; the Spanish Super Cup tournament was played at the 62,000-capacity King Abdullah Sports City stadium in Jeddah in January 2020; and just before the world went into Covid lockdown, American horse Maximum Security won the inaugural $20 million Saudi Cup, the world's richest horse race.
And a street circuit in Jeddah will be the venue for the eagerly anticipated very first Saudi Arabian Grand Prix later this year.
The contribution of sports to Saudi Arabia’s gross domestic product (GDP) grew from SAR2.4 billion ($640m) in 2016 to SAR6.5bn ($1.7bn) in 2019, the most recent year for which sector-specific data is available. That figure is expected to grow to SAR18bn ($4.8bn) by 2030, according to the Ministry of Sports.
The kingdom currently has SAR11bn ($3bn) major sports projects planned or under construction.
Tourism is equally driving job creation and development. Some $810bn is being invested in huge giga-projects, designed to completely transform the industry in the country, including the Diriyah Gate project, the Red Sea Development, Amaala, Qiddiya and Neom.
According to the 2020 PwC Sports Survey, sports market growth in the Middle East is expected to increase by 8.7 over the next three-to-five years, outpacing all other regions.
To drive growth in the kingdom, Saudi has allowed 100 percent foreign ownership of sports clubs.
“[This] will and should directly help sports clubs as they seek to speed up their development, because the previous system that was in place didn't allow private investment in sports clubs,” Beauchamp said. “You'll see more market sector influences coming to bear, and if it’s done with the right marketing, you should ensure revenue.”
Beyond tourism and sports investment, infrastructure is another key piece of the picture – both in terms of facilities and roads and transport networks that facilitate travel within the kingdom. Facilities, for professional teams and hobbyists in the country of 35m, need to be developed for game play and spectators, according to Beauchamp.
“It's definitely it's definitely an opportunity, and there are plans afoot to address it within Saudi Arabia, but the change isn’t coming overnight,” he said.
The new Riyadh Sports Boulevard being built through the heart of the capital, with cycling lanes and lanes for pedestrians and horse riders, is one example of the interlinked infrastructure work.
“That’s where it's working hand-in-hand with the broader planning infrastructure for growing the city, [and this] is exactly where opportunities to address some of the challenges come,” said Beauchamp.
“Pretty soon you'll be able to link that in with what Saudi Cycling [Federation] are doing as they look to develop an infrastructure of clubs across the kingdom, as well as hosting big professional cycling events. You've got elite all the way down to grassroots beginning to be addressed.”
