Sport has emerged as a crucial element in the socioeconomic development of nations, with Saudi Arabia establishing itself as an expanding hub for sports events. The impact of Saudi Arabia’s strategic investment in sports has contributed to its tourism industry and strengthened its economy.

Economic Impact

In 2018, Saudi Arabia initiated its first major foreign sports investment by signing a ten-year, $100 million per year deal with World Wrestling Entertainment (WWE). Since then, the kingdom has made expenditures to host various sports events, including boxing, tennis, horse racing and Formula 1 races. These ventures are made through the $650 billion Public Investment Fund (PIF), the world’s fifth-largest sovereign wealth fund, which also acquired Newcastle United. The PIF’s investments have also attracted global sports stars through lucrative contracts, exemplified by Cristiano Ronaldo’s record-breaking salary upon joining Saudi Arabian club Al Nassr.

Job Creation

The advancement of the sports industry in Saudi Arabia provides employment opportunities in the sports business sector. With more than two-thirds of the population being under the age of 35 and showing a growing interest in sports, there is a rise in both event participation and attendance. Fostering a sports culture contributes to positive global perceptions, showcasing Saudi Arabia’s history, customs and traditions. This cultural enhancement positively impacts the nation’s economic, social, lifestyle and the nation’s health aspects.

The 2020 Ministry of Sport report underscores the industry’s economic significance, generating more than 14,000 jobs, crucial for economic growth and financial independence. Sports club employment has surged by 129% in the last three years, boosted by the introduction of new sports programs. Further, administrative positions witnessed a 156% increase, while career opportunities in sports grew by 114% from 2018 to 2021.

Tourism and Hospitality Impact

Hosting sporting events in the Kingdom has a substantial impact on tourism. It draws a larger number of international visitors and results in heightened expenditures, positively impacting the Saudi economy. In 2020, sports events generated a total revenue of $9.8 million. Moreover, the sports sector contributes to hotel and broader hospitality industry spending. Riyadh’s hotel occupancy rates increased by 58% in the first eight months of 2022 and Jeddah saw a 52% occupancy rate, nearly 13% higher than the previous year.

Reforming Education and Health

Sports for All (SFA) President Prince Khaled bin Alwaleed aims to engage 40% of the Saudi population in physical activity by 2030. Meanwhile, former U.S. Open competitor Kevin Kerns is expanding tennis programs in Saudi schools, impacting more than 70,000 children. Kerns emphasizes tennis as more than a sport, instilling skills like goal-setting, teamwork and valuable life lessons.

Youth Empowerment

Saudi Arabia is investing in empowering its youth through strategic investments in sports. This commitment is evident in the development of sports facilities, academies and grassroots programs, fostering opportunities for aspiring athletes, coaches and sports management professionals. Emphasizing the significance of nurturing talent from the grassroots level, the nation has implemented initiatives to identify and support young athletes across various sports. These efforts, providing essential resources, coaching and facilities, are aimed at cultivating future champions and ensuring a sustainable pipeline of sporting talent.

Beyond the pursuit of victories, Saudi Arabia’s extensive sports investment significantly contributes to shaping the nation’s culture and social cohesion. Sporting events serve as unifying platforms, fostering inclusivity and creating opportunities for those facing economic challenges, exceeding societal divides. This commitment to sports also promotes a healthier lifestyle, contributing to enhanced overall well-being within the population.

Increasing Women’s Rights and Participation

Saudi Arabia’s strategic investment in sports is empowering women. It provides opportunities for skill development, new employment, health improvement and leadership growth. This contribution helps in fostering their self-sufficiency and aids in the fight against poverty. The country currently boasts more than 6,000 female athletes and supports 27 women’s sports teams.

The granting of driver’s licenses in 2017 opened new avenues for female athletes, exemplified by Reema Juffali’s participation in an international racing competition in 2019. Additionally, Saudi Arabia hosted its inaugural Ladies European Tour golf tournament in 2020, featuring Saudi women alongside international players. During the same year, there were significant developments, such as the issuance of business licenses for women’s gyms and the authorization of physical education inclusion in schools for girls and boys.

Navigating the Sports Washing Debate

Saudi Arabia’s strategic investment in sports has sparked a debate on the practice of “sports washing,” where high-profile sports events are used to divert attention from systematic human rights violations. Led by Crown Prince Mohammed bin Salman, the government leverages billions from the PIF to host and secure sports deals. This includes events such as the Spanish football Super Cup and potential hosting of major events like the 2034 Asian Games, men’s football World Cup and even the 2035 women’s World Cup.

Despite media restrictions, severe penalties for certain behaviors, migrant-related issues and a lack of labor unions and protests, Saudi Arabia persists in using sports to enhance its global reputation. Saudi Crown Prince Mohammed bin Salman, in an interview with Fox News, expressed a willingness to continue “sports washing” if it boosts the country’s GDP by 1%, regardless of criticism.

– Ellen Jones
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