The sports industry in Saudi Arabia is playing a pivotal role since the 1950s and is the integral part of the economy and culture of the Saudi Arabia. Crown Prince Mohammed bin Salman is ambitious to elevate the Saudi football team to international level and want it to be a part of world’s top 10 teams.
It is enough to testify how serious the Saudi Government is for sports industry in the kingdom. That is why we are here with a comprehensive guide on Sports Business in Saudi Arabia and how you can launch it in 2024.
Sports Industry in Saudi Arabia: An Overview
Saudi Arabia has launched Quality of Life Program in May 2018 to achieve the goal of propagation of sports industry in Saudi Arabia and this program emphasizes on sports tremendously. There are various initiatives that Saudi Government took through this program that aims to foster extensive participation of individuals and investors in the Saudi Sports Industry, sports events and activities.
Not only it enhance the Saudi athletes performance various in international sports competitions, but also promotes the sports economy growth. This is also a part of Saudi Vision 2030, which aims to position Saudi Arabia as a leading sports-based economy of the world.
The Economy of Sport in KSA
Saudi Arabia has nearly 70% of its population under 30 years of age and that is where the government of Saudi Arabia recognizes how important it is to leverage the youth for their sports based economy. According to their Vision 2030, the economy of sports sector is set to reach $22.2 billion by 2030 significantly.
The recent investments by Saudi Government exceeds $6.3 billion since 2021 in the sports like Formula 1, football, golf, tennis and winter sports is creating the huge impact on Saudi Arabia’s economic growth.
Here are some important stats to go through regarding The Economy of Sport in KSA:
- The sports event industry has an impressive growing rate of 8% per year
- Currently, approximately 0.2% to the Kingdom’s GDP is from the sports sector
- Tourism due to sports also contributes to 3% in the GDP as per the Ministry of Sport and Ministry of Tourism.
- The growth target set by both ministries is to increase the sports contribution up to 0.6% to the GDP by 2030.
Why to Start Sports Business in KSA? List Of Benefits
The Kingdom of Saudi Arabia is committed to host major international and local Sports events in Saudi Arabia in the country to promote sports tourism. The government is also embracing emerging sporting trends like e-sports to make Saudi Arabia as an attractive and dynamic hub for the global community of sports business.
With a sports market projected to exceed $3 billion by the end of 2024, there are a plethora of opportunities for international and local players in the sports sector of Saudi Arabia. Also, sports business in Saudi Arabia will be encouraged a lot by the government as Saudi Arabia government is willing to invest in the sports sector extensively.
- Saudi Arabia is planning to promote sporting activities domestically and host big 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 major events like the 2022 FIFA World Cup in Qatar 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.
- 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.
- Despite the dispute with Qatar, Saudi Arabia anticipates active participation in the 2022 FIFA World Cup and aims to improve its performance from the previous tournament.
Key Steps and Process for starting Sports Business in KSA
Sports Market Research
First of all, research on the sports market of Saudi Arabia and find out which sports goods are high in demand. It will help you select the nature of you sports business in Saudi Arabia and you will start it without any challenges
Business Plan and Legal Structure
The second task is to clearly outline your sport business in Saudi Arabia plan and knowing the industry you wish to work in. You can change it later on depending on your sports business exact nature. For example, you may wish to open a game development company, run any gaming platform or become a professional game event manager. Your sports business license will depend on it. Also, your business plan and legal structure will decide your business setup in free zone or mainland.
Business Registration and License
Next is the stage of registration of sports business in Saudi Arabia and get the license for it. Again, it all depends on:
- What is your sport business plan?
- What initial investment you have
- What is the nature of your sports business?
- What sports industry you are aiming at
Saudi Arabia General Investment Authority (SAGIA) is responsible for the issuance of your investment license. You can invest in any sports business or establish your own, or set up a any sports frachise in Saudi Arabia through this license
Funding Requirements Determination
Next step is to determine the funding requirements of sports business in Saudi Arabia. Whether you need capital seed funding or you are in the higher level of your sports business journey, you can get a help from the Ministry of Sports and Tourism in Saudi Arabia regarding it.
Marketing and Promotions
No business can get success without marketing and promotion. That is why it is necessary that you must opt for efficient marketing plan for your sports business in Saudi Arabia. We at Saudi Company Formation will help you out every possible in marketing your business of sports in Saudi Arabia so that you start a successful venture
Customers Experience
While your start your sports business in Saudi Arabia, focusing on customer’s experience is equally important to attain the level of success you want.
Compliance and Regulations
While you obtain the sports business license in Saudi Arabia, it is important to adhere to the compliance and regulations regarding the Saudi Arabia sports business. We as a business consultancy form in Saudi Arabia are always here to help you out in this matter. You can always contact us regarding any matter related to legal regulations and compliance.
An Estimated Budget to Start Sports Business
The cost of starting a new sports business in Saudi Arabia is SAR 15,000 and can go up to SAR 30,000 approximately. However, this amount can vary depending on the nature of your sports business, the sports business license or the location of your sports business (free zone, or mainland)
Final Thoughts
There are various options to start your sports business in Saudi Arabia that you can opt with minimal effort. As Saudi Arabian Government is aimed to invest in sports sector extensively, there is a high chance that your venture will be successful.
