The Economic Impact of Tourism, Entertainment and Sports on Saudi Arabia

The Economic Impact of Tourism, Entertainment and Sports on Saudi Arabia

Saudi Arabia is at a pivotal crossroads, shifting from an era defined by oil to one of economic diversification and innovation. With over 63% of the population under thirty, there is a strong drive for these reforms to succeed. The good news? The Kingdom is already making significant strides toward a brighter future. Strategic investments in travel, sports, and entertainment are not only boosting the economy but also laying the foundation for a vibrant and diverse society. Envision Saudi Arabia as a host for the 2034 World Cup, warmly welcoming global visitors with a seamless Gulf area visa. Picture it emerging as a global cultural and innovation hub.?

In this blog, we will explore how Saudi Arabia’s Vision 2030 is reshaping lives, creating new opportunities, and redefining the Kingdom’s place in the world through tourism, entertainment and sports.

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Tourism

Saudi Arabia’s vision for tourism goes beyond merely attracting visitors; it’s about redefining the Kingdom’s role on the global stage. Monumental projects like NEOM, the Red Sea Development, and Qiddiya are central to this vision. NEOM, a futuristic city blending technology and sustainability, offers a glimpse into the future of travel. The Red Sea project aims to turn pristine coastlines into luxurious havens, inviting travelers to experience Saudi Arabia’s beauty in unprecedented ways. Meanwhile, Qiddiya, an entertainment wonderland near Riyadh, promises adventure and excitement.

These ventures are not just about creating tourist destinations—they’re weaving new economic threads into the Kingdom’s fabric, sparking job creation, and reshaping Saudi Arabia’s global image. The economic impact is significant: tourism’s contribution to GDP is forecasted to reach SAR 498 billion in 2024, with over 158,000 new jobs, totaling nearly 2.7 million in the sector. This growth extends beyond major projects and urban centers, invigorating local communities, boosting small businesses, and enhancing the standard of living for many Saudis.

A pivotal element in this strategy is the launch of Riyadh Air. Expected to contribute $20 billion to non-oil GDP growth and create around 200,000 jobs, Riyadh Air is aligned with the National Transport and Logistics Strategy, and is a huge catalyst for economic growth. It’s role in establishing Saudi Arabia as a major aviation hub further reinforces the Kingdom’s status as a top global logistics center by 2030.

Additionally, partnerships like Riyadh Air and AlUla are pivotal in positioning Saudi Arabia as a luxury heritage destination. The introduction of a Gulf area free visa furthur simplifies access, making the Kingdom even more attractive to international tourists. In addition to increasing tourism, these initiatives aim to stimulate economic development and attract investors, creating a lasting positive impact.

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The Sports Catalyst

Saudi Arabia's sports industry is on a major upswing, with a projected growth rate of 9.82% from 2022 and 2029. This booming market is expected to reach a value of US$4.01 billion by 2029 - the impressive growth fueled by Saudi Arabia's strategic investments in sports, which have placed the Kingdom firmly on the global sporting map.

Saudi Arabia's Public Investment Fund (PIF) has been at the forefront of these efforts, making significant investments that span across a variety of sports. From the high-profile LIV Golf tournament to ventures in boxing, wrestling, and even the purchase of Newcastle United, Saudi Arabia’s influence in the global sports arena is undeniable. The Kingdom is making bold moves to become a global leader in eSports, highlighted by its recent hosting of the Esports World Cup. This landmark event, part of a broader strategy, reflects the Kingdom’s commitment to elevating eSports to the level of traditional sports. With over 70% of its population under 30, Saudi Arabia is tapping into a dynamic youth base and aiming to capture a share of the $150 billion global eSports market. The Kingdom's investment in this sector, which includes significant infrastructure developments and strategic partnerships, aligns with its Vision 2030 goals. These efforts not only showcase Saudi Arabia’s passion for gaming but also position it as a key player in the rapidly growing world of eSports.?

At the heart of Saudi Arabia’s sports revolution is its National Sports Strategy, which seamlessly connects community, amateur, professional, and elite sports. This approach focuses on using sports as a powerful tool to enhance social development and build a more connected community.

One of the most remarkable aspects of Saudi’s sports strategy is its focus on women’s participation. Women in sports represent a significant social win for the Kingdom, challenging long-held global perceptions and signaling a new era of inclusivity. Female participation in sports has skyrocketed by 149% since 2019, with athletes like Olympic runner Yasmeen Al Dabbagh and martial arts competitor Tahani Al Qahtani becoming national icons. This shift not only promotes gender equality but also enhances Saudi Arabia’s image on the world stage.

Sports in Saudi Arabia also serve as a powerful tool for social cohesion and nation-building. By fostering community engagement and developing social networks, sports strengthen government and business collaborations while reinforcing patriotic and community ideals. The positive spillover effects are immense—impacting tourism, public health, youth development, and social empowerment. The 135km Sports Boulevard mega-project is a prime example, bringing state-of-the-art facilities and creating thousands of jobs, all of which contribute to a lasting legacy that will enrich the lives of Saudi citizens.

Moreover, Saudi Arabia’s bold investments in sports are attracting increased foreign direct investment (FDI) and elevating the visibility of its tourism sector. These advancements offer unique opportunities for entrepreneurs eager to invest in the Kingdom, positioning Saudi Arabia as a leading force in the global sports landscape.?

Ultimately, the Kingdom's sports initiatives serve as a catalyst for economic growth, social transformation, and a more promising future for Saudi Arabia.

Sports Entertainment

It's no secret that sporting events can serve as powerful catalysts for social and economic change. The London 2012 Olympic and Paralympic Games, and the Birmingham 2022 Commonwealth Games are prime examples of events that boosted the local economy, attracted tourism, increased infrastructure investments, and enhanced global visibility.

Saudi Arabia is following a similar approach, leveraging sports entertainment to regenerate cities and public perception. As such, Saudi has announced its intention to host the FIFA World Cup in 2034 and is investing heavily in the construction of new stadiums across the kingdom. By hosting such a prestigious event, Saudi Arabia hopes to attract international visitors and stimulate economic growth.

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Entertainment

Building on the momentum from its sports entertainment initiatives, Saudi Arabia's entertainment sector has experienced a remarkable transformation. The Kingdom now hosts a vibrant array of live music events, comedy acts, and theater performances - creating a dynamic cultural scene that entertains and attracts travelers, and fosters intercultural dialogue. This evolution is particularly striking when considering Saudi Arabia’s relationship with music. Just five years ago, music wasn’t an attractive investment n the Kingdom. Today, thanks to significant investments, the Saudi music market is projected to grow by 10.29% between 2022 and 2029, reaching a market volume of US$51.90 million by 2029. This shift not only highlights the rapid changes within the country but also reflects a broader cultural renaissance that is reshaping Saudi society. In this new era, Saudi artists and content creators are no longer confined to local stages. With the rise of social media, streaming services, and online platforms, they now have unprecedented access to the global market. This exposure highlights Saudi talent on a global scale and introduces diverse cultural expressions to international audiences, enriching the global exchange of ideas and experiences.?

Saudi Arabia’s commitment to developing its entertainment sector is more than just an economic strategy—it’s a statement of cultural renewal and global engagement. As the Kingdom broadens its entertainment landscape, it’s creating new opportunities for its citizens while also welcoming the world to experience the depth and vibrancy of Saudi culture. This transformation is a key element in Saudi Arabia’s broader vision of becoming a global hub for entertainment and cultural exchange, reflecting its ongoing journey towards a more open and diversified future.

Amusement Parks

Saudi Arabia has witnessed a significant surge in the development of amusement parks and entertainment venues, such as Qiddiya, the Red Sea Project, Riyadh Boulevard, and the SEVEN entertainment projects. Take Boulevard City in Riyadh, for instance—the largest entertainment area in the Kingdom, where you can dive into virtual reality games, explore a mix of international and local shops, and enjoy lively cultural theatres. Then there’s SEVEN, or Saudi Entertainment Ventures, which is set to bring 21 entertainment destinations to 14 cities across Saudi Arabia. Imagine a world of fun with arcade games, thrilling rides, immersive VR zones, bowling alleys, AMC cinemas, and a variety of dining and retail experiences. Plus, SEVEN will feature a Clip 'n Climb facility, a junior family entertainment center, and an indoor adventure golf course.?

Adding to this exciting lineup, Saudi Arabia has announced plans to build a Dragon Ball-themed park, celebrating the iconic Japanese animated series. This theme park will attract fans from around the world, adding a unique and popular attraction to the Kingdom’s entertainment offerings.

These developments reflect a broader cultural shift and are driving tourism, job creation, and local economic growth. By drawing in visitors from around the world, amusement parks generate revenue through various channels and stimulate related industries such as hospitality, dining, and transportation.

Moreover, amusement parks create diverse employment opportunities, ranging from park operators and maintenance staff to customer service representatives and food service workers. This can help reduce unemployment rates and improve the overall quality of life for local residents.

The development of amusement parks often requires significant infrastructure investments, such as transportation systems, utilities, and accommodation facilities. These investments can benefit the host community by improving its overall infrastructure and amenities.

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The Festival Scene

Saudi Arabia's vibrant festival scene, including Riyadh Season, AlUla Season, and Jeddah Season, has proven to be a significant driver of economic growth and cultural enrichment. The festivals have a far-reaching impact on various sectors, including hospitality, retail, restaurants, aviation, and transportation by attracting visitors from both domestic and international markets, and contribute to increased revenue and job creation. For local families, events provide a platform to increase income through various business opportunities, such as food stalls, merchandise sales, and hospitality services.?

These festivals attract substantial investments from companies seeking to capitalize on the influx of visitors, and the success of these mega-events demonstrates the capabilities of Saudi companies in managing, operating, and implementing large-scale entertainment projects within record timeframes.

From a cultural standpoint, festivals also offer a unique opportunity for international visitors to gain a deeper understanding of Saudi Arabia's culture and heritage which helps challenge negative stereotypes and creates a more positive global perception.

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Conclusion

Saudi Arabia is undergoing a profound transformation, with travel, sports, and entertainment serving as key pillars of its future economy. These sectors are not just about hosting high-profile events; they are integral to the Kingdom’s national strategy for driving social change, GDP growth, job creation, and global visibility.?

As Saudi Arabia reshapes its identity and global positioning, it’s crucial that these ambitious initiatives are pursued with a realistic approach—considering scale, pace, infrastructure, and talent required. It’s imperative to consider where the biggest opportunities lie and invest accordingly to secure a bright future.

In just a few short years, Saudi Arabia has evolved from a nation primarily defined by oil into a vibrant hub of innovation and culture. As the Kingdom continues to break new ground and expand its horizons, the world watches with anticipation to see how far this transformation will go and what new heights Saudi Arabia will achieve next.