Sport in Saudi Arabia is entering a new phase marked by the transformation of its development model, following several years of multimillion-dollar investments driven by the Public Investment Fund (PIF). The Middle Eastern country is seeking to move away from acquiring assets and building major infrastructure toward consolidating clubs, federations and institutions capable of sustaining long-term growth. With the 2034 FIFA World Cup as its main objective, the challenge is no longer simply to have world-class facilities, but to develop a solid, professionalized sports structure capable of managing an increasingly complex industry.
This new direction was discussed by Alwaleed Alkeaid, founder of Saudi Sports Professionals Network, who identifies 2026 as the beginning of a phase in which the institutional capacity of Saudi sport takes center stage. In his analysis, the executive argues that the country’s sporting ambition has already been demonstrated, but warns that the real challenge lies in ensuring that organizations evolve at the same pace as investment. In this context, the introduction of a new Sports Law aims to establish a framework covering clubs, federations, leagues, athletes, facilities and academies, although its impact will depend on how it is implemented and its ability to transform the sector’s day-to-day management.
The institutionalization of Saudi sport and the challenge of building strong organizations
The new phase of Saudi sport places governance and professionalization at the center of its strategy. The approval of a Sports Law is intended to expand and organize the operating framework for different organizations, but Alkeaid warns that the existence of formal rules and structures does not, by itself, guarantee better management. For the founder of Saudi Sports Professionals Network, the real change must be reflected in clearly defined responsibilities, decision-making and accountability. A federation may have well-defined policies without clearly delineated responsibilities, while a club may have internal committees without this necessarily implying greater institutional accountability. Therefore, the challenge is to develop a governance culture that translates into concrete practices and greater management capacity.
This transformation is also linked to the sector’s opening to private investment and the reorganization of the PIF’s sports assets. One of the most significant developments was the sale of a 70% stake in Al-Hilal to Kingdom Holding Company for 840 million Saudi riyals, equivalent to approximately €194 million, while the sovereign wealth fund retained 30% ownership. According to Alkeaid, five other clubs have also been offered to investors, in a process that coincides with the Saudi government’s interest in attracting private capital to the sector. Authorities reported more than 80 expressions of interest involving 22 clubs, signaling the opening of the sports model to new players. Privatization, however, creates a need for organizations to develop administrative and commercial structures capable of sustaining their operations, with more professional management and business models that do not depend exclusively on public investment.
The 2034 World Cup as a driving force for infrastructure and professionalization
Preparations for the 2034 FIFA World Cup represent one of the main drivers of this institutional transformation. Saudi Arabia has proposed five host cities, 15 stadiums and 134 training centers to host the tournament, an infrastructure plan that will require much more than the construction and modernization of venues. Facility management, fan experience, hospitality, commercial operations, technology and event organization will be essential areas in meeting the demands of a competition of this scale. Alkeaid argues that stadiums are entering a new phase in which they must operate as businesses and activity hubs throughout the year. In this context, several of the country’s main venues were offered to qualified companies for operation and management through a three-year investment opportunity, with the aim of promoting more professional operating models.
Developing these capabilities is also linked to professional training and the creation of sustainable operating models. For Alkeaid, capital can accelerate infrastructure construction, but institutional capacity requires more time and planning. The executive highlights the need for executives, commercial leaders, technical specialists, facility managers, financial experts, and professionals in data and event organization. Meanwhile, the PIF is moving forward with the reorganization of its investments and the opening of the sector to new private players, while projects such as Al-Qiddiya, a city conceived around entertainment, sport and culture, form part of the country’s development strategy. This megaproject, valued at approximately €34 billion, is planned as one of the venues for the 2034 World Cup and also includes a Formula 1 circuit and the hosting of a Masters 1000 tennis tournament starting in 2028.
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