The sports industry in Saudi Arabia is expanding rapidly and is an integral part of the economy and culture of Saudi Arabia. Crown Prince Mohammed bin Salman plans to elevate the Saudi football team to the international level and wants it to be a part of the world’s top 10 teams. The country is also promoting Sports Tourism in Saudi Arabia. Sports tourists travel to the Kingdom to watch major sporting events and participate in sports. This creates exciting opportunities for starting a sports business in Saudi Arabia.
Upcoming sporting events
The Kingdom is committed to hosting major international and local sporting events in Saudi Arabia to promote sports tourism. The significant events planned are the 2027 Asian Football Cup, Asian Winter Games 2029 and 2034 FIFA World Cup, with the last considered the pinnacle of Vision 2030. The Kingdom also hosts international tennis and global golf tournaments and promotes football matches of international standards.
The government is also embracing emerging sporting trends like e-sports to make Saudi Arabia an attractive and dynamic hub for the global sports business community.
Expanding sports sector in KSA
With the Saudi Arabian sports market projected to exceed $3 billion by the end of 2024, there are many opportunities for international and local players in the Saudi sports sector. Also, the government will significantly encourage sports businesses in Saudi Arabia, with the government willing to invest extensively in the sports sector.
The government has created NEOM City with an investment of $500 Billion aiming at revolutionizing the sports sector in Saudi Arabia. Futuristic sporting events hosted in NEOM City will continuously strengthen the Kingdom and help it emerge as a global sporting hub.
The private sector can benefit from organizing sports events, supplying sports infrastructure, and running marketing agencies.
Key Initiatives
- Saudi Arabia plans to promote sporting activities domestically and host significant international events to improve citizen health and diversify the economy.
- Prince Abdulaziz bin Turki Al-Faisal, the Minister for Sport, aims to create new businesses and jobs in the global sports industry to tackle health issues like obesity.
- Vision 2030 strategy includes hosting significant events like the 2034 FIFA World Cup in Saudi Arabia and Formula 1 races to boost tourism and participation in sports.
- The economic benefits of a vibrant sports industry are emphasized, with significant GDP contributions expected from Saudi companies.
- Efforts are being made to increase sports participation among Saudis, especially the youth, to combat obesity and promote an active lifestyle.
- The inclusion of women in sports is a priority, with progress seen in the rise of female participation and the establishment of the first women’s football league.
Key Benefits of hosting sports events in the Kingdom
Some of the key benefits of hosting different sports events in Saudi Arabia are indicated below:
- Saudi Arabia’s investment in sports is driving demand for sports academies, events, and facilities, making it the perfect time for starting a sports business in the Kingdom.
- Spectator revenue, athletes spending, and sponsorships impact the economy favourably.
- Encouraging mass participation and interest in high-profile sports stimulates interest in sports.
- Develop tourism.
- Improves the image of Saudi Arabia.
- Promote a sense of pride and unity among Saudi nationals.
Starting a Sports Business in Saudi Arabia
The following need to be considered when starting a sports business in Saudi Arabia:
- Market Research: Research the sports market of Saudi Arabia and find out which sports goods are in high demand. It will help you select the nature of your sports business in Saudi Arabia, and you may start it without any challenges.
- Business Plan and Legal Structure: The second task is clearly outlining your sports business plan in Saudi. Your sports business license will depend on it. Also, your business plan and legal structure will decide whether your business is set up in the free zone or the mainland.
- Legal requirements: It is essential to obtain the necessary permits from local authorities and ensure that your business complies with Saudi labour laws, taxation and other regulations.
- Licenses: You must obtain specific permits for your business, such as an NAFES program license for private sports entities.
- Commercial Registration: It is necessary to obtain a commercial registration from the Ministry of Commerce for all business activities.
- Foreign Ownership: Many sectors in Saudi Arabia are open to complete foreign ownership.
- Business Visa: You must obtain a business visa to live and work freely in Saudi Arabia.
It is advisable to avail yourself of the services of a professional consulting agency like Helpline Group in Saudi Arabia to help set up a sports business in the country.
Helpline Group in Saudi Arabia
Helpline Group in Saudi Arabia, backed by a strong and experienced team, brings over 25 years of expertise in company formation, offering a seamless, hassle-free experience for clients, including foreigners.
Our seasoned professionals possess in-depth knowledge of the latest rules and regulations, ensuring compliance and efficiency.
With a global presence and a tailored approach, we ensure that your sports business setup is handled with precision and professionalism, making us your reliable ally in achieving success.
