Saudi Arabia has invested billions of dollars through Public Investment Fund (PIF) to transform its sports landscape.
When the world footballing body Federation Internationale de Football Association (FIFA) officially named Saudi Arabia the host country for the 2034 FIFA World Cup, a senior official revealed that tourism license applications in Saudi Arabia had reportedly increased by almost 400%.
During a panel discussion at the Sports Investment Forum in Riyadh, Princess Haifa bint Mohammed Al-Saud, the Kingdom’s Vice Minister of Tourism, noted that applications have increased fourfold. This surge reflects the increasing interest of international tourists contributing to economic growth, as reported by local broadcaster Al-Ekhbariya.
This rise is part of Saudi Arabia’s plan to push sports infrastructure investments as part of Vision 2030, a passion project led by Crown Prince Mohammed bin Salman. It is the Kingdom’s strategic framework aimed at diversifying the economy and reducing its dependency on oil.
It also aligns with the growing recognition that sports tourism plays a crucial role in economic development, making up 10% of global tourism spending, and will grow by 17.5% by the end of the decade.
In recent years, Saudi Arabia has invested billions of dollars through its sovereign wealth fund, the Public Investment Fund (PIF), to transform the sports landscape in golf, boxing, esports, and Formula One.
Princess Haifa stated that the number of tourists who came exclusively to attend sporting events reached 14 million last year, spending almost SR22 billion ($5.86 billion). She continued by saying there are no limits in sports tourism, referring to the billions of investments they invested in sports infrastructure.
She added that in 2018, visitors from 70 different nationalities visited the Kingdom to attend sporting events, and currently, the number has surpassed 160 nationalities.
During the meeting, the vice minister emphasized the role of the broader tourism ecosystem in supporting the Kingdom’s sporting ambitions and helping to foster sustainable economic growth through public and private sectors.
Meanwhile, the Saudi crown prince, commonly known by his initials MBS, has formed a public friendship with FIFA President Gianni Infantino, who continued to welcome investment from the Gulf country in the sport.
Therefore, hosting a World Cup is a cherry on top. It supports the Kingdom’s ambition to venture into sports.
It is no surprise that the country has grand plans for the tournament. It has committed to significant infrastructure projects, including building or renovating 11 stadiums and new hotel rooms.
Saudi Arabia will become the second Middle Eastern country to host the tournament after Qatar staged it in 2022.
In November, experts indicated that Saudi Arabia could expect a gross domestic product (GDP) boost between $9 billion and $14 billion from the 2034 FIFA World Cup, creating 1.5 million new jobs and developing 230,000 hotel rooms across five host cities.
A report published by the global football governing authority indicates that Saudi Arabia’s main cost drivers consist of $378.4 million for television operations, $273.8 million for workforce management, $124 million for transportation, $111.1 million for team services, and $99.5 million for IT and telecommunications.
The first-ever edition of the three-day Sports Investment Forum brought local and international leaders, officials, investors, and entrepreneurs to explore opportunities in the Kingdom’s growing sports landscape.
The FIFA World Cup 2034 will be the first time where a single country will host the 48-team tournament.
Saudi’s host cities are Riyadh, with modern entertainment and historic treasures at Diriyah; Jeddah, with the shining Red Sea and Al Balad; Al Khobar, with its beautiful beaches and cultural sites; Abha, with its adventure sports; and NEOM, with its futuristic inventions.
All the host cities are prepared to captivate football fans with cutting-edge stadiums, top amenities, lively fan festivals, and various cultural experiences.
The FIFA World Cup will expand sports investment in Saudi Arabia by promoting effective collaboration, luring funds, and launching projects that help grow the Saudi economy.