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Saudi Arabia's Ministry of Sport has launched a landmark initiative opening three of the Kingdom’s premier sports venues to private investment, deepening the country's push to position itself as a global hub for sports and entertainment.
Announced in May 2025, the Sports Facilities Investment Project grants private sector investors unprecedented access to King Abdullah Sports City and Prince Abdullah Al-Faisal Sports City in Jeddah, along with King Abdulaziz Sports City in Makkah. The move signals a new phase in Saudi Arabia’s Vision 2030 agenda, centred on economic diversification and private sector empowerment.
This initiative is a key component of a broader strategy to boost private sector participation in Saudi entertainment, a sector which has seen exponential growth over the past five years. From SAR 2.5 billion in private investment in 2018, the entertainment sector surpassed SAR 14 billion in 2023, with targets to reach over 40% private involvement by 2030.
Under the new project, a suite of five-year renewable contracts will be offered to investors. These include:
Such structured investment models mirror global best practices, appealing to both domestic conglomerates and foreign capital looking to establish a footprint in the Gulf's most dynamic market.
Saudi Arabia has become a global focal point in sports and entertainment, thanks to high-profile moves such as its investment in LIV Golf, the acquisition of Newcastle United, and landmark player contracts with international football stars. Now, the Kingdom is offering a more formalised path for foreign investment in Saudi Arabia through its sports infrastructure.
This shift creates new and viable investment opportunities in Saudi Arabia across:
For business leaders evaluating entry into the Kingdom, these assets offer more than just marketing value. They represent gateways to long-term commercial presence aligned with Saudi Arabia's national development goals.
Opening these facilities to private investors serves dual objectives:
The facilities selected are not just athletic venues, but multi-use complexes capable of hosting international events. Their geographic distribution across Makkah and Jeddah also supports regional development and tourism goals.
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Investors benefit from a supportive regulatory ecosystem. The Ministry of Investment (MISA), in coordination with the General Entertainment Authority (GEA) and Ministry of Sport, is streamlining licensing and contract processes for qualified private firms.
Entities with proven expertise in event operations, venue management, or international sports sponsorship are likely to find fast-track opportunities.
For new entrants, Peninsula offers strategic guidance on navigating these frameworks, from structuring joint ventures to securing operational approvals.
This announcement reflects a wider shift: Saudi Arabia is no longer just a showcase for mega-events, but an ecosystem ready for long-term private and foreign investment. The entertainment sector is evolving from state-sponsored spectacle to a commercially vibrant industry.
If your business is exploring entry into the Kingdom, these developments offer a clear signal: there has never been a better time to evaluate Saudi entertainment as a strategic growth sector.
Book a free consultation with Peninsula today to explore how your organisation can take advantage of this opening and build a compliant, profitable presence in Saudi Arabia.
Alistair Paine brings 15 years of dedicated experience in Saudi market entry, guiding Fortune 500 companies and innovative scale-ups through successful establishment in the Kingdom. His expertise in Saudi company formation, licensing and market entry strategy, positions him as a leading authority and consultant in international business expansion to Saudi Arabia.
Schedule a free consultation with Alistair and the Peninsula team to understand which market entry strategy is best suited to your business setup in Saudi Arabia.
Email: Alistair@peninsulacs.com
