Saudi sporting sector to score big before 2034 FIFA World Cup

Saudi Arabia’s Public Investment Fund is one of the driving forces in this area as it aims to establish the Kingdom as a global leader in sports and entertainment. File
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Updated 19 September 2024
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Saudi sporting sector to score big before 2034 FIFA World Cup

  • Sector is set to be responsible for over 1 percent of Kingdom’s total GDP by 2030

RIYADH: Commercial opportunities in Saudi Arabia’s sports sector are set to grow at an unprecedented rate even before the Kingdom hosts the 2034 FIFA World Cup, an industry expert has forecast.

Speaking to Arab News, Jurg Kronenberg, partner at global management consulting firm Bain & Co., praised Saudi Arabia’s developments in the industry, which he claimed were both innovative and disruptive.

Turning the Kingdom into a key player in the international sporting arena is a key ambition of Crown Prince Mohammed bin Salman, and Saudi Arabia has already hosted several major events in this regard, including high-profile boxing matches, ATP tennis tournaments, and Formula 1 racing since 2021. 

The Kingdom’s progress will be cemented by the hosting of the 2034 World Cup, which is set to deliver an economic boost to Saudi Arabia.

The most recent World Cup, held in Qatar in 2022, helped deliver a 4 percent surge to the host country’s gross domestic product, up from the 1.5 percent growth observed in 2021, according to a Cushman and Wakefield report.

The analysis said: “Qatar’s hosting of the World Cup resulted in the launch of numerous tourism and leisure projects throughout the country, which are hoped to support the tourism and hotel sector in the long term.”

Kronenberg believes that even before that event, the Saudi sports sector is set to be responsible for more than 1 percent of the Kingdom’s total GDP by 2030.

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The Kingdom’s progress will be cemented by the hosting of the 2034 World Cup, which is set to deliver an economic boost to Saudi Arabia.

PIF’s establishment of SRJ Sports Investments Co. is dedicated to accelerating sports sector growth, with the company acquiring intellectual property, and organizing major global events in Saudi Arabia.

The Kingdom’s football industry has been a key and high-profile area of investment, with PIF acquiring a 75 percent stake in four major football clubs.

The Saudi Pro League, featuring players from more than 40 countries, has witnessed a 150 percent attendance increase in the past year.

In 2021, the PIF-funded LIV Golf tour was established, and on June 6 a deal was struck with the two legacy organizations – PGA Tour and the DP World Tour – to merge their commercial rights.

He said: “The KSA sports sector is expected to increase 5-7-fold until 2030, fueled by the investments and untapped commercial potential in the market.”

Kronenberg added: “It will take time and patience for some of the foundational pillars of the sports ecosystem to bear fruits, but the Kingdom was also able to leverage its strength to innovate and disrupt the sports sector and has created strong momentum.”

Saudi Arabia’s Public Investment Fund is one of the driving forces in this area as it aims to establish the Kingdom as a global leader in sports and entertainment. 

PIF’s establishment of SRJ Sports Investments Co. is dedicated to accelerating sports sector growth, with the company acquiring intellectual property, commercializing competitions, and organizing major global events in Saudi Arabia, aligning with Vision 2030.

The Kingdom’s football industry has been a key and high-profile area of investment, with PIF acquiring a 75 percent stake in four major football clubs, including Al Ahli, Al Hilal, Al Ittihad, which signed Karim Benzema in June, and Al Nassr — home to global icon Cristiano Ronaldo. 

The Saudi Pro League, featuring players from more than 40 countries, has witnessed a 150 percent attendance increase in the past year, and Ronaldo has previously said he sees it potentially becoming one of the world’s top five domestic competitions in the sport.

The focus has not been solely on football.

In 2021, the PIF-funded LIV Golf tour was established, and on June 6 a deal was struck with the two legacy organizations – PGA Tour and the DP World Tour – to merge their commercial rights.

The PIF-Aramco Team Series has been a milestone for women’s golf in Saudi Arabia, featuring top golfers competing for individual and team titles.

The Professional Fighters League, also backed by PIF, has secured a multi-year media rights agreement with US cable sports channel ESPN, positioning MMA as a mainstream global sports entertainment platform.

Kronenberg noted that investments into sports does not only lead to economic returns, such as through increased market revenues or the creation of more jobs, but it also delivers in the social sphere through better health outcomes, lower crime rates, and inclusion.

He emphasized that opportunities in Saudi Arabia are being supported by the Kingdom’s government, saying: “The aspiration in the sports sector is driven and strongly supported at the highest level of the country.”

The consultant added: “The KSA sports sector was able to define its approach and investments with a clean slate and leapfrog other nations.”

Kronenberg highlighted the fact that around 70 percent of the population in Saudi Arabia is less than 35 years old, and said: “This created unique opportunities to fulfill the needs of these generations in a differentiated way.”

In an interview with the BBC in December, the Kingdom’s Sports Minister Prince Abdulaziz bin Turki Al-Faisal highlighted Saudi Arabia’s commitment to sports development, citing a £5 billion ($6.33 billion) investment since 2021 as part of the Vision 2030 strategy.

According to Kronenbreg, investments of this magnitude have not only put the Kingdom on the world map of sports, but it has created the fundamentals to achieve similar economic outcomes as other nations.

“The critical path for the Kingdom is to find a way to commercialize these investments and assets in a sustainable way,” he said.

Of course, these investments are not solely focused on the financial bottom line, and Kronenberg added: “Beyond the economic competitiveness, we can expect to see an increased competitiveness of Saudi athletes and teams at Olympics and international club and team competitions.”

Among the initiatives rolled out over the past five years include the introduction of a national sports strategy, new investment initiatives, the launch of several marquee events, as well as the professionalization and privatization of clubs.

Kronenberg said: “We are still in the early days, and the talent pyramid remains a key challenge to drive the professionalization of the sports sector in the KSA. 

“Many of the top coaches and club administrators are still foreigners with relatively high churn rates – historically the average tenure of a football coach was less than 6 months in KSA.”

Kronenberg added: “There are various programs under way that will address the professionals pyramid holistically – coach programs, educational degrees in sports.”

Newcastle United’s manager Eddie Howe earlier in December shared his positive experiences from his team’s visits to Saudi Arabia, highlighting the well-organized infrastructure.

Saudi Arabia’s sports industry is flourishing, and while the signings of Ronaldo and Benzema and the hosting of the 2034 FIFA World Cup have dominated the headlines in recent years, the whole sector is increasingly becoming match-fit.


OPEC+ moves to set 2027 production baselines

Updated 28 May 2025
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OPEC+ moves to set 2027 production baselines

RIYADH: OPEC+ announced on Wednesday that it will establish a framework to determine new oil production baselines for 2027, marking a significant step in its long-term planning, said an official statement.

The alliance — comprising the Organization of the Petroleum Exporting Countries and partners including Russia—has been negotiating revised production baselines for several years. These baselines serve as reference points from which member states adjust their output levels.

According to the statement issued following the group’s meeting, said it had tasked the OPEC Secretariat with developing a mechanism to assess each country’s maximum production capacity. These assessments will form the basis for 2027 production targets across all member nations.

Since 2022, the group has implemented three tiers of output cuts. Two remain in place through the end of 2026, while the third is being gradually phased out by eight participating countries. No changes were made to the group’s current production policy at Wednesday’s session.

Due to the sensitive nature of the discussions, all sources spoke on condition of anonymity.

The 2027 baselines, once finalized, are expected to guide production policy after the current round of cuts expires.

Oil prices, which dipped below $60 per barrel in April—the lowest level in four years—following OPEC+’s decision to accelerate May output and amid trade tensions triggered by US tariffs, have since rebounded to around $65.


Saudi Arabia launches advanced manufacturing center to boost industrial innovation

Updated 28 May 2025
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Saudi Arabia launches advanced manufacturing center to boost industrial innovation

JEDDAH: Saudi Arabia has launched the Advanced Manufacturing and Production Center, a key initiative aimed at accelerating the Kingdom’s industrial transformation through the adoption of advanced technologies and sustainable practices.

Unveiled on May 28, the center is set to play a central role in promoting efficiency, flexibility, and growth within the manufacturing sector. It will utilize technologies associated with the Fourth Industrial Revolution to localize production and enhance Saudi Arabia’s competitiveness on the global stage.

The initiative also supports strategic industries while aligning with the objectives of Saudi Vision 2030, the country’s long-term plan to diversify its economy. A major focus is encouraging private sector collaboration to speed up the integration of emerging technologies into industrial operations.

The launch supports the National Industrial Strategy, introduced in October 2022, which aims to increase the number of factories in the Kingdom to approximately 36,000 by 2035. The strategy is designed to attract investment, scale up local production, and strengthen non-oil exports.

The Ministry of Industry and Mineral Resources is overseeing several projects to advance the Kingdom’s industrial and logistical infrastructure, positioning Saudi Arabia as a key player in global manufacturing and trade.

“Adopting the latest industrial technologies raises the efficiency of our industrial sector and enhances its competitiveness regionally and globally,” said Khalil bin Ibrahim bin Salamah, deputy minister of industry and mineral resources for industrial affairs, in a post shared by the ministry on X.

In an accompanying video, the ministry reiterated the center’s significance in meeting national goals: “The Advanced Manufacturing and Production Center opens doors to industrial investment opportunities and stimulates the sector to adopt new manufacturing technologies within industrial facilities.”

The center is supported by several initiatives and programs, including the Future Factories Program, which aims to modernize 4,000 factories across the Kingdom. The FFP focuses on integrating advanced manufacturing systems to boost efficiency and build more resilient supply chains—particularly in critical sectors such as food and petrochemicals.

According to its official website, the center serves as a hub for industrial innovation, providing consultancy services, training, and technological solutions. It is dedicated to fostering sustainability and competitiveness across the manufacturing sector.

Through these efforts, the center is expected to significantly contribute to Saudi Arabia’s Vision 2030 goals by localizing high-tech capabilities, attracting investment, and advancing the industrial sector’s role in the nation’s economic diversification.


Closing Bell: Saudi main index rises to close at 11,052

Updated 28 May 2025
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Closing Bell: Saudi main index rises to close at 11,052

RIYADH: Saudi Arabia’s Tadawul All Share Index advanced on Wednesday, closing higher by 127.58 points, or 1.17 percent, to reach 11,052.76, reflecting broad market optimism.

Trading activity remained robust, with a total turnover of SR4.57 billion ($1.21 billion). Of the listed stocks, 202 posted gains while 44 declined.

The Kingdom’s parallel market, Nomu, also recorded gains, rising 340.91 points, or 1.28 percent, to close at 26,932.95. The market saw 48 advancing stocks against 34 decliners.

Meanwhile, the MSCI Tadawul 30 Index climbed 15.12 points, or 1.08 percent, ending the session at 1,413.70.

Fawaz Abdulaziz Alhokair Co. emerged as the session’s top performer, with its share price jumping 5.77 percent to SR16.50.

Ataa Educational Co. and Kingdom Holding Co. followed closely, gaining 5.46 percent and 5.22 percent to close at SR61.80 and SR8.66, respectively.

On the downside, United Carton Industries Co. registered the steepest decline, falling 4.87 percent to SR46.85. Banan Real Estate Co. dropped 2.4 percent to SR4.48, while Nama Chemicals Co. slipped 1.78 percent to SR27.55.

On the announcements front, Saudi AZM for Communication and Information Technology Co. disclosed it has submitted a request to transfer its listing to the main market.

Additionally, the initial public offering for Flynas Co. began on May 28 and will conclude on June 1. The offering is priced at SR80 per share, with a retail tranche comprising 10.25 million shares. According to a statement, BSF Capital is the lead manager.

Alkathiri Holding Co. announced that its subsidiary has signed a 50-year lease agreement valued at SR143 million with the Asir Region Municipality to develop a commercial and hospitality project in the city of Abha.

According to a statement published on the Saudi stock exchange, the project will feature a four-star hotel with a capacity of 180 keys, alongside retail and entertainment facilities. The development aims to boost tourism and enhance commercial services in the Asir region.

The lease will officially begin upon the land handover by the Investment Committee of the Asir Region Municipality.

Shares of Alkathiri Holding closed Wednesday’s trading session at SR2.06, marking a 1.96 percent gain.

In a separate disclosure, Mufeed Co. announced that its board of directors has recommended to the ordinary general assembly the transfer of its statutory reserve balance — totaling SR3.49 million, as reported in the financial statements for the year ended Dec. 31, 2024 —to retained earnings.


Saudi Arabia’s Asir region revitalizes 95% of stalled projects

Updated 28 May 2025
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Saudi Arabia’s Asir region revitalizes 95% of stalled projects

  • Asir is a vast region in the Kingdom with a population exceeding 2 million people
  • Interest from global players seeking early opportunities in the region’s evolving landscape has grown

ABHA: Saudi Arabia’s Asir region has successfully revitalized 95 percent of its previously delayed project, an important milestone that is strengthening investor confidence as the region moves forward with SR29 billion ($7.73 billion) worth of initiatives across various sectors.

In an interview with Arab News, Hashim Al-Dabbagh, CEO of Asir Region Development Authority, stated that a dedicated committee, chaired by Asir Gov. Prince Turki bin Talal, was formed several years ago to tackle long-standing investment challenges that had stalled progress in the region.

“The total number of cases that have been brought to this committee to address has been 63, all brought to the table,” Al-Dabbagh said.

He continued: “Of these 63 cases that have been brought to this committee to address and to solve, 60 cases have been solved, and three are in the pipeline right now, and they’re working on them, and they’re going to solve them relatively soon.”

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Of the 60 resolved, 57 were concluded with outcomes that satisfied investors, reflecting a resolution rate of nearly 95 percent.

“This committee and the work that they have done has created some very positive vibes across the investment ecosystem in Saudi Arabia, which you sense in this forum because there are some very large investors that are coming to Asir, some coming back to Asir which had not been interested in this region in the past,” Al-Dabbagh said.

The board operates in collaboration with various public and private entities, including ASDA, the Ministry of Investment, the Ministry of Tourism, the Tourism Development Fund, and King Khalid University, ensuring a unified approach to accelerating investor activity in the region.

This resolution mechanism plays a key role in supporting the region’s development strategy, which focuses on unlocking investment potential across various sectors.

“First of all, we have a strategy that drives everything that we are doing,” Al-Dabbagh said.

He added: “The strategy has been approved by the center of government, and it says that Asir should be a year-round preeminent destination, so already we know that we need to focus on the tourism sector and complementary and adjacent sectors to the tourism sector. That’s one, and that gives us a lot of momentum in working with the government ecosystem and the private sector.”

Al-Dabbagh emphasized that Asir is more than just a tourism destination, noting that it is a vast region in the Kingdom with a population exceeding 2 million people.

“Within the Asir Development Authority, we have a whole department called Economic Development Department, and they are working diligently this year on sectoral studies across the board.”

He added: “This includes, obviously, tourism-related sectors, but also other ones, so just as an example, we are looking at sports, we are looking at construction. We’re looking at fisheries and agriculture. We’re looking at renewable energy. We’re looking at mining among other sectors.”

The authority is also aligning its economic strategy with educational institutions to ensure the region’s workforce is equipped to meet the demands of upcoming sectors.

“We are working closely with King Khalid University, the TVTC (Technical and Vocational Training Corp.), Bishop University, and other educational institutions to align the strategies and to make sure that their graduates are able to find jobs in the opportunities that are going to be realized as we realize this strategy,” he said.

On attracting investments, Al-Dabbagh stated: “What I call the investment ecosystem in Asir, it’s the framework that we use to assess investments, is comprised of three components. The first component is the Invest in Asir committee, and that’s headed by Prince Turki in his capacity as the chairman of the Aseer Development Authority and includes all the public and private sectors.”

He explained that the region offers a compelling opportunity for early movers due to its untapped potential, strategic government backing, and the ability to enter key sectors before they reach full maturity, providing investors with a critical advantage in shaping long-term development.

“Asir relative to those mature, tourism destinations, offers relatively less mature areas, so when they’re coming in, they’re coming in early and they’re going to have a ... not a first mover advantage, but an early mover advantage compared to people that are going to see this place for five years or 10 years down the road when all these incumbents are already on the ground.”

Attracting FDIs

Foreign direct investment is also gaining momentum in Asir, with growing interest from global players seeking early opportunities in the region’s evolving landscape.

“One of the speakers in today’s forum was Fatih (who is managing partner of FTG Development), and they are looking at an investment worth billions in Asir. That is just one example, and foreign direct investors, they look for successful local investors to partner with,” Al-Dabbagh said.

He concluded: “Our doors are open. We’re very happy to meet with the investors from anywhere.”


EU lifts economic sanctions on Syria

Updated 28 May 2025
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EU lifts economic sanctions on Syria

BRUSSELS: The European Union lifted economic sanctions on Syria on Wednesday in an effort to support the country’s transition and recovery after the toppling of former president Bashar Assad.
The move follows a political agreement reached last week by EU foreign ministers to lift the sanctions.
The EU will keep sanctions related to Assad’s government and restrictions based on security grounds, while also introducing new sanctions against individuals and entities connected to a wave of violence in March, the Council said.
“The Council will continue monitoring developments on the ground and stands ready to introduce further restrictive measures against human rights violators and those fueling instability in Syria,” it added.