RIYADH: Saudi Arabia’s sports sector market value is projected to hit $22.4 billion by 2030, up from $8 billion, driven by a surge in investments and a growing focus on the industry.

According to the report released by SURJ Sports Investments, a company under the Public Investment Fund, the Kingdom has hosted over 100 major international events across 40 different sports since 2019.

This growth supports Vision 2030’s goal of developing the Kingdom into a global sport and entertainment hub, with Middle East and North Africa sports market revenue projected to rise from $4.79 billion in 2024 to $5.57 billion by 2029, as per data from Statista.

Major events hosted by the Kingdom include the FIFA Club World Cup, the Saudi Cup horse race, and various Formula 1 races held in Jeddah.

“These efforts culminated in December with the Kingdom officially winning the right to host the 2034 FIFA World Cup,” said Danny Townsend, the CEO of SURJ Sports Investments.

Saudi Arabia’s commitment to sports development is evident in financial investments. SURJ’s report highlighted that the sector’s contribution to the Kingdom’s gross domestic product grew from $2.4 billion in 2016 to $6.9 billion in 2019. 

Annual contributions are projected to reach $16.5 billion by 2030, accounting for 1.5 percent of the national GDP. Additionally, sports investments are expected to generate over 100,000 jobs in the next decade.

Key achievements in the sector include the launch of the Professional Fighters League Middle East and North Africa, supported by SURJ Sports Investments, marking the first regional mixed martial arts league. 

“This initiative opens new avenues for athletes from Saudi Arabia and the Middle East to compete in this discipline,” Townsend added.

The sector also saw a rise in infrastructure spending, with plans for $2.7 billion to develop and renovate facilities by 2028, according to the report.

The growing enthusiasm for sports among Saudi citizens has been pivotal. Participation rates in physical activities have increased, with 50 percent of the population now exercising regularly, up from 13 percent in 2015. 

This shift has been supported by initiatives like the “Sports for All Federation,” which engaged over 295,000 participants in community programs in 2023 alone.

Female participation has also increased by 400 percent since 2015, and women now make up 45 percent of community sports club members. A total of 97 female coaches were registered in 2023, reflecting a 61 percent year-on-year increase.

Saudi Arabia’s investment in esports and digital gaming is another growth frontier. The country has earmarked $38 billion for the sector, with the goal of contributing $13.3 billion to the national GDP by 2030. 

Hosting major events like the Esports World Cup has cemented the Kingdom’s status as a leader in the industry.

“As we approach 2025, the focus will remain on continuing efforts to achieve more accomplishments,” the CEO said.

RIYADH: Fitch Ratings has revised Oman’s long-term foreign currency issuer default ratings to positive from stable and affirmed the IDR at BB+, driven by the availability of fiscal tools to combat future shocks. 

According to its latest report, the US-based credit rating agency said that the Gulf country’s ratings were supported by higher gross domestic product per capita, the positive impact of recent budget reforms and decreasing government debt per GDP. 

While Fitch maintains a positive outlook on Oman, its IDR remains lower than that of its regional neighbors, including Saudi Arabia and the UAE. In February, Fitch affirmed the Kingdom’s IDR at A+ with a stable outlook, while the UAE received an AA- rating.

According to the rating agency, a BB rating indicates an elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time. However, it also suggests that the company or entity has some financial flexibility to meet its obligations despite the increased risk.

“High dependence on oil revenue, modest financial buffers given high exposure to volatile hydrocarbon prices, and Oman’s net external debtor position weigh on the ratings,” said Fitch. 

Saudi Arabia’s A+ rating indicates the Kingdom’s strong capacity to pay financial commitments and signifies low default risk. 

The analysis added that Oman’s positive outlook also reflects greater confidence in the resilience of public finances and the availability of more fiscal tools to respond to shocks than in the past.

The US-based agency said the Gulf country’s overall GDP is expected to expand by 1.8 percent in 2024, driven by the growth of the non-oil economy. 

“We project overall GDP growth of 1.8 percent in 2024, after 1.2 percent in 2023, supported by non-oil growth of 3.7 percent, while hydrocarbon GDP was hindered by OPEC+ quotas. Domestic consumption, robust foreign investment and tourism will maintain non-oil growth above 3 percent in 2025 and 2026,” added Fitch. 

The analysis added that Oman’s budget surplus is expected to narrow to 0.7 percent of GDP in 2025 and to turn into a minor deficit of 0.2 percent in 2026, assuming that the average price of Brent oil will reach $70 per barrel next year, and $65 per barrel in 2026. 

In November, Moody’s also upgraded Saudi Arabia’s long-term local and foreign currency issuer and senior unsecured ratings to Aa3 from A1. 

Moody’s gives Aa3 ratings to countries with very low credit risk and the best ability to repay short-term debt. 

Fitch downgrades Egypt’s economic growth prospects

In a separate report, Fitch Ratings downgraded Egypt’s economic growth outlook to 3.7 percent for the fiscal year 2024/2025, down from a previous projection of 4.2 percent, driven by disruptions in the Suez Canal. 

The US-based agency added that Egypt’s economy is expected to accelerate to 5.1 percent in 2025/26, up from its previous forecast of 4.7 percent. 

Fitch said that this expected economic growth is driven by the possible normalization of Red Sea navigation and a stronger performance of the services sector due to easing geopolitical risks.

In November, speaking at the Rome MED-Mediterranean Dialogues conference, Egypt’s Minister of Foreign Affairs Badr Abdelatty said that the country had incurred losses amounting to $8 billion due to a significant drop in the Suez Canal revenues. 

The analysis added that the country’s economy is recovering; however, the pace is slower than previously projected. 

In October, the International Monetary Fund said that Egypt’s economy is set to expand by 2.7 percent in the current fiscal year before accelerating to 4.1 percent next year. 

Earlier this month, another report by Fitch Ratings said that general business and operating conditions for financial institutions in Egypt are expected to improve next year. 

In that report, Fitch said that improved investor confidence and healthy foreign currency liquidity conditions are some of the major factors that could strengthen the banking sector in Egypt in 2025.