By: Eng. Sulaiman Almusallam, CEO of Red Bull MOBILE in Saudi by Future Network Telecommunications
August 2024– Saudi Arabia’s rise in the world of sports is nothing short of remarkable, mirroring the broader transformation the Kingdom has undergone in recent years, with the diversification of the economy being an important strategic and long-term goal.
Central to this transformation is the Kingdom’s strategic emphasis on sports, which has evolved into a powerful catalyst for national development and brand growth. As the Kingdom progresses towards the ambitious goals of Vision 2030, the evolution of sports partnerships in Saudi Arabia has become a compelling narrative—demonstrating how brands can harness the market’s energy to forge deep connections with consumers and drive sustainable success.
The Kingdom’s leadership has underscored that these investments in sports are aimed at benefiting the people, particularly the youth. Minister of Sport and President of the Saudi Olympic and Paralympic Committee (SOPC) Prince Abdulaziz bin Turki Al-Faisal had recently highlighted that hosting major events, such as the Formula 1 Grand Prix, serves to engage the community and foster local interest. For instance, when Saudi Arabia hosted the Joshua-Ruiz Jr. fight, the country had only six boxing gyms; today, that number has grown to 57, with a 300% increase in participation in the sport.
A new era in sports
Historically, sports in Saudi Arabia revolved around football, a passion shared by millions across the Kingdom. However, the landscape has evolved dramatically. Today, sports in Saudi Arabia are more than just a pastime—they are a key driver of national development and a symbol of the Kingdom’s growing influence on the world stage. The numbers speak volumes: the Saudi sports market is on track to grow by 20% annually, with projections estimating it will reach a market size of $5 billion by 2025.
The journey toward this transformation has been marked by deliberate and strategic investments. Football remains the crown jewel, commanding the largest share of the sports market, but the Kingdom’s vision extends far beyond the pitch. High-profile events across various sports disciplines—from motorsports to combat sports and e-sports—have created new opportunities for brands to connect with diverse audiences, showcasing Saudi Arabia as a vibrant hub for global sports.
Laying the foundation
The past few years have seen Saudi Arabia lay the foundation for a booming sports ecosystem. The Kingdom has invested over $2 billion in sports infrastructure and events, setting the stage for a wave of growth that has positively impacted sectors like tourism, public health, and youth development. These investments have not only amplified Saudi Arabia’s global sports profile but have also attracted foreign direct investment (FDI) and boosted the visibility of the tourism sector.
Additionally, by hosting major international sporting events, the Kingdom has not only showcased its commitment to diversity, inclusiveness, and cultural richness but also underscored its economic potential on the global stage. Recent investments are a testament to this commitment: over $1 billion has been earmarked for a potential deal with the Professional Golf Association (PGA) Tour, alongside hundreds of millions allocated to recruit global soccer stars to play on Saudi-based teams or serve as tourism ambassadors.
Saudi Arabia’s strategic approach to sports is further exemplified by initiatives like the Sports for All (SFA) program, which aims to get 40% of the population active by 2030. This program, launched in 2018, is a cornerstone of the Kingdom’s Vision 2030, targeting all age groups and emphasizing inclusivity. The initiative’s goal is to motivate people from all walks of life to adopt healthier lifestyles, increase community-wide physical activity, and foster social interaction through sports.
The strategic shift
The rise of Saudi Arabia as a global sports hub has also redefined the nature of sports partnerships. In the past, brand involvement in sports was often limited to traditional sponsorships—logos on jerseys and banners at stadiums. Today, the narrative has shifted. Brands are no longer content with passive sponsorships; they are becoming true partners, collaborating with sports entities to create meaningful and memorable experiences for fans. This shift from sponsorship to partnership reflects a broader trend in global sports, where brands are seen as integral contributors to the events they support.
The impressive growth of the sports industry in Saudi Arabia, which has seen its contribution to GDP rise from $2.4 billion in 2016 to $6.9 billion, underscores the sector’s potential as a driver of economic diversification. This growth extends beyond sports companies, positively impacting related sectors such as tourism and enhancing the Kingdom’s global reputation. For entrepreneurs, the expanding sports ecosystem offers a rare opportunity to establish long-term partnerships with local and international stakeholders, aligning with the Kingdom’s visionary agenda.
Tapping into the market
Saudi Arabia’s youthful and digitally-savvy population, with over 70% under the age of 35, has fueled this transformation. The Kingdom’s high smartphone penetration rate, exceeding 90%, has created a unique environment where digital innovation and sports converge, offering brands a powerful platform to connect with consumers on an emotional level.
Football, with its deep cultural resonance in Saudi Arabia, remains the most potent tool for brands looking to build strong, enduring relationships with the Saudi audience. However, the Kingdom’s investment in a wide range of sports—from basketball and tennis to esports and fitness—provides brands with diverse opportunities to engage with different market segments. Whether through grassroots initiatives, youth programs, or elite-level sponsorships, brands can leverage the power of sports to build strong, enduring relationships with consumers.
The winning recipe
As Saudi Arabia continues to solidify its place as a global sports powerhouse, the role of sports partnerships will only grow in significance. For brands looking to succeed in this vibrant market, the winning recipe is clear: embrace the evolution of sports partnerships, tap into the market’s energy, and craft experiences that resonate with consumers on a deeper level.
In this new era, sports partnerships are not just a marketing strategy—they are a vital component of brand growth. By aligning with the Kingdom’s sports initiatives, brands can position themselves as key players in the Saudi market, driving engagement, loyalty, and sustainable growth in an ever-evolving landscape.
The future of sports in Saudi Arabia is bright. The Kingdom is poised to make an indelible mark on the world of sports, with the mandate to host iconic events such as the FIFA World Cup and the Asian Winter Games. This journey is about more than just building a sports industry; it is about creating a legacy that will inspire generations to come. The world is watching as Saudi Arabia plays with intent, driven by the people, processes, and passion to become one of the foremost sporting nations on the global stage.
