ACWA Power signs $263m deal for Nukus2 wind project in Uzbekistan
Updated 31 March 2024
Arab News
RIYADH: Saudi energy giant ACWA Power has signed a SR985.13 million ($262.7 million) power purchase agreement with Uzbekistan's National Electric Grid for the Nukus2 200-megawatt wind project.
In a Tadawul statement, ACWA Power clarified that the 25-year deal, structured as a public-private partnership, includes the installation of a battery energy storage system within the Central Asian nation. The contract follows the build, own, operate, and transfer model.
The company also stated that the financial impact of the project is anticipated to become evident after the first half of 2026. It emphasized that the project is currently undergoing development, stressing that the total investment value might be subject to changes upon reaching financial closure.
The utility firm initiated the first phase of a 3,000 tonne-per-year green hydrogen project in Uzbekistan in November 2023.
The project was inaugurated by Uzbekistan’s President Shavkat Mirziyoyev and Saudi Minister of Investment Khalid Al-Falih.
“We are honored that the leadership of Uzbekistan has bestowed their trust in our capabilities to develop the country’s first green hydrogen project,” Mohammad Abunayyan, founder and chairman of the board of directors at ACWA Power, said at that time.
He emphasized that the project marked a significant milestone in the history of Uzbekistan’s energy revolution, further stating that ACWA Power is honored to spearhead the initiative.
Abunayyan added: “I would like to extend my gratitude to all those who have contributed to the success of these projects and reaffirm our enduring commitment to continue our collaboration and investment in Uzbekistan's bright, sustainable future.”
The project will be developed in two phases, with the first phase, a 3,000-tonne green ammonia pilot project, already underway following the signing of hydrogen purchase and power purchase agreements in May 2023.
Upon completion of the second phase, 2.4 gigawatts of wind energy will drive the production of 500,000 tonnes of green ammonia annually.
“When completed in full, this will be ACWA Power’s second utility-scale green hydrogen project after the NEOM Green Hydrogen Project in Saudi Arabia, which is a joint venture between ACWA Power, NEOM and Air Products,” stated the company website.
The company noted that Uzbekistan is ACWA Power’s second-largest market in terms of investments, emphasizing its long-standing commitment to the country with a portfolio that includes 12 projects, 11 of which are fully renewable.
Saudi Ma’aden prices $1.25bn debut sukuk, 9.2 times oversubscribed with $11bn in orders
Company said it had completed the sukuk issuance through US dollar-denominated trust certificates
Ma’aden’s $1.25bn Shariah-compliant bond was issued in two tranches
Updated 25 sec ago
MOHAMMED AL-KINANI
JEDDAH: The Saudi Arabian Mining Co., or Ma’aden, priced its $1.25 billion debut sukuk, oversubscribed by 9.2 times, with demand exceeding $11 billion for the five and ten-year tranches, according to an official statement.
In a bourse filing, the company said it had completed the sukuk issuance through US dollar-denominated trust certificates, adding that they will be listed on the London Stock Exchange’s International Securities Market and may be sold under Regulation S and Rule 144A of the amended US Securities Act of 1933.
The Tadawul statement said Ma’aden’s $1.25bn Shariah-compliant bond was issued in two tranches, including a five-year $750m tranche at 5.25 percent and a 10-year $500m tranche at 5.5 percent. The issuance includes 3,750 trust certificates for the five-year tranche and 2,500 for the 10-year, each valued at $200,000. Settlement is set for Feb. 13.
CEO of Ma’aden Bob Wilt said the success of the inaugural international sukuk offering demonstrates investors’ confidence and interest in Ma’aden’s growth, according to a press release.
“Such strong international investor demand, some of the highest seen in Saudi Arabia, is testament to global confidence in our strategic direction and the integral role we play in unlocking Saudi Arabia’s $2.5 trillion of untapped mineral potential,” the CEO said.
Wilt added that as they continue to deliver on their growth strategy, the funding will accelerate their efforts to secure essential minerals that drive the energy transition and long-term development. “We remain committed to building a globally competitive mining sector as the third pillar of Saudi Arabia’s economy.”
Louis Irvine, the chief financial officer of Ma’aden, said the “successful” sukuk issuance reflects the strength of their business, their disciplined financial strategy, and the confidence global investors have in the future of the company.
“We are particularly pleased to welcome new investors whose support will be instrumental as we continue to build mining as the third pillar of the Saudi economy, a key objective of the Kingdom’s Vision 2030. The funds raised will enable us to execute our expansion plans across all our divisions efficiently while maintaining a robust balance sheet as we move forward.”
The issuance aligns with forecasts that global sukuk offerings will total between $190 billion and $200 billion in 2025, driven by growing activity in key markets such as the Kingdom and Indonesia, according to a January analysis by S&P Global.
Global sukuk issuances totaled $193.4 billion in 2024, a slight decrease from $197.8 billion in 2023. Despite the marginal decline, the market saw a 29 percent year-on-year increase in foreign-currency-denominated sukuk, surging to $72.7 billion in 2024.
Under Ma’aden’s International Trust Certificate Issuance Program, the move highlights the company’s strong financial position and demonstrates investor confidence in its long-term growth strategy.
The sukuk issuance proceeds will support the mining giant’s expansion initiatives and further solidify its standing as a leading mining and metals enterprise in the Kingdom and beyond.
The national mining company announced that Citi and HSBC acted as joint global coordinators, joint active bookrunners, and joint lead managers, while Al Rajhi Capital, J.P. Morgan, and SNB Capital served as joint active bookrunners and joint lead managers.
BNP Paribas, BSF Capital, GIB Capital, Natixis, and Standard Chartered Bank acted as joint passive bookrunners and joint lead managers, while HSBC also served as rating advisers.
The firm, rated “Baa1” by Moody’s and “BBB+” by Fitch, said the sukuk are expected to be rated on par with Ma’aden’s ratings.
In January, Ma’aden awarded three contracts worth SR3.45 billion ($921.58 million) for its third phosphate fertilizer plant, according to a filing with Tadawul at that time.
The company named China National Chemical Engineering Co., Sinopec Nanjing Engineering and Construction, and Turkiye-based Tekfen Construction and Installation Co. as the contractors.
Riyadh Expo 2030 to boost Saudi Arabia’s global presence
Expert shares strategies for ensuring expo’s lasting impact on the world stage
Updated 09 February 2025
Arab News
RIYADH: Riyadh Expo 2030 will propel the Saudi capital onto the global stage through its innovative transformation “while being deeply rooted in its cultural essence,” said an international expert on mega events.
During an interview with Arab News, Philippe Blanchard, former director of the International Olympic Committee and a senior adviser to Dubai Expo 2020, emphasized the significance of the event for both Saudi Arabia as a whole and for Riyadh in particular. Drawing from his extensive experience in organizing major events, Blanchard also discussed the potential challenges and shared strategies for overcoming obstacles to ensure the event’s success.
Following are excerpts from the interview:
Based on your past experience, how can Riyadh benefit from the event on the global stage?
We need to bear in mind that a mega event is not merely an “event,” it is a narrative unfolding before our eyes. I witnessed this over the last 33 years, since my very first Games in 1992.
The Saudi Vision 2030 is about holistic transformation — economic, cultural, and social. Riyadh Expo was designed to be a canvas where each stroke of innovation, sustainability, and cultural exchange will paint Riyadh not just as a participant but as a protagonist in the global theatre.
It is about forging a new identity for the city, one that resonates with a global audience while being deeply rooted in its cultural essence. But all this needs to be extremely fine-tuned on the organization side. Very precise (and shared) objectives, clear deliverables are required to ensure the narrative reaches the global audience and creates the necessary impact. Riyadh and Saudi Arabia have gone through a tremendous transformation. Expo is a fantastic opportunity to take it to the world.
What are the key challenges in managing the event and in coordinating with the Bureau International des Expositions and its member states?
Whether it is about an Olympics or a World Expo, the challenge for the host territory is like navigating a vast, complex ecosystem, with many different stakeholders.
On the one hand, coordinating with the BIE, the governing body in charge of overseeing and regulating World Expos, involves adhering to strict guidelines and protocols, ensuring the event’s integrity and international standards.
On the other hand, there’s also the intricate diplomacy with the BIE member states, each with their unique expectations and contributions. It’s like conducting an orchestra where every instrument is from a different part of the world, each with its own melody. The synchronization required is immense — balancing the Kingdom’s vision with the practicalities of dozens of countries investing resources, time, and cultural narratives into the event.
In my career, I witnessed several situations in which countries got this part wrong and could not catch up after this. It was dramatic as a lot of energy and money had been invested in the preparation and the infrastructure. But missing the steps results in low attendance and buy-in from the member states. It also leads to disengagement from national stakeholders.
How can Riyadh ensure that this event retains its “human touch” and heritage amid logistical and temporal pressures, especially given the diverse set of international stakeholders?
Here’s where the art of complexity management becomes crucial. Listening is paramount — to the expectations and aspirations of the local communities as well as the ambitions of international participants.
The human touch is preserved through empathy and negotiation, ensuring every voice is heard and every culture is respected. Shanghai 2010, Milan 2015, and Dubai 2020 have taught us that when participants feel like co-authors of the event’s story, the event transcends from mere spectacle to a profound human experience. It’s about ensuring that amidst the steel and concrete, the heart of the event — the human story — continues to beat strongly.
Over the years and experience, specific frameworks and guidelines have been developed to ensure the right results.
How can Riyadh balance the high expectation following the BIE vote with the practicalities of execution?
This balancing act is where the vision must meet the ground. The initial bid was a dream, a promise to the world. Now, it’s about translating that promise into tangible reality. This involves a continuous dialogue — not just between the vision of the bid and the feedback from stakeholders, but also between the Kingdom’s expectations, the BIE’s requirements, and the capabilities of member states.
Resource allocation must be strategic, ensuring infrastructure supports but does not overshadow the cultural and human exchange. Like a desert blooming, it’s about fostering growth where every participant’s contribution, from the smallest cultural exhibit to the grandest architectural marvel, is vital.
How does the interaction with the BIE and its member states complicate or enhance the legacy planning for the Riyadh Expo 2030?
Interaction with the BIE and member states is a double-edged sword in legacy planning. On the one hand, the BIE provides a framework for excellence and accountability, guiding the event towards lasting impacts.
On the other hand, the diverse interests of member states lead simultaneously to a rich tapestry of legacies — economic, cultural, and educational — and also to potential conflicts in vision and resource allocation.
The key is in harmonizing these interests into a cohesive strategy where the legacy is not just about the physical remnants but about the societal transformations that continue long after the event. Success will be when these legacies resonate like the echo of a well-played symphony, long after the last note has faded.
Pakistan aims for stronger trade ties with Saudi Arabia, says commerce minister
In October, Saudi Arabia exported goods worth SR614.2 million ($164 million) to Pakistan, accounting for 0.7 percent of its total exports.
Pakistan is also looking to attract Saudi investment in key sectors such as oil and gas, renewable energy, and infrastructure.
Updated 09 February 2025
MOHAMMED AL-KINANI
JEDDAH: Pakistan is seeking to expand its trade ties with Saudi Arabia, aiming for a larger share of the $5.5 billion bilateral trade market by diversifying exports beyond traditional commodities, a senior minister said.
Speaking to Arab News at the conclusion of Pakistan's first solo ‘Made in Pakistan’ exhibition and business forum in Jeddah, federal commerce minister Jam Kamal Khan noted that a significant portion of the total trade volume comprises petroleum and minerals exported from Saudi Arabia.
“Our annual export to Saudi Arabia is going to be close to $600 to $700 million, which again is not that big a figure. That is why I feel the reason for inaugurating these exhibitions over here is that we can tap those potential areas where Pakistani and Saudi Arabian companies can jointly work to benefit trade between the countries,” he said.
مشاركة وكيل محافظ هيئة #التجارة_الخارجية للعلاقات الدولية أ. عبدالعزيز السكران، في معرض ومنتدى الأعمال "صُنع في باكستان 2025"، بحضور معالي وزير التجارة بجمهورية باكستان السيد جام كمال خان، وعددٍ من المسؤولين، وممثلي القطاعين العام والخاص في البلدين، والمقام في مدينة جدة. pic.twitter.com/8nWIuQCjEM
In October, Saudi Arabia exported goods worth SR614.2 million ($164 million) to Pakistan, accounting for 0.7 percent of its total exports. The Kingdom imported SR249.5 million in products from Pakistan, making up 0.3 percent of its total imports.
With strong consumer demand, a large expatriate workforce, and Vision 2030’s emphasis on economic diversification and foreign investment, Saudi Arabia presents significant export potential for Pakistani businesses.
Khan said Pakistan is also exploring opportunities in Africa, calling it a major market where the country has a competitive edge through its small and medium enterprises.
Reflecting on his visit to Saudi Arabia, Khan highlighted recent high-level exchanges between the two countries, including Pakistani Prime Minister Shehbaz Sharif’s official visit.
“Having a brotherly relationship with Saudi Arabia for a very long time, somehow this exhibition should have happened much earlier. But again, I guess this is the right time,” he said.
The exhibition was attended by senior Saudi officials from the Ministries of Investment and Commerce, alongside representatives from the Federation of Saudi Chambers. Khan described the interactions as highly engaging and expressed optimism about the event’s outcomes.
Expanding partnerships
Khan underscored the need to enhance Pakistani workforce participation in Saudi Arabia’s evolving economic landscape.
“We already have a very big human resource presence in Saudi Arabia, which is close to 3 million people, but the majority of that workforce is at a less-skilled level,” he said.
He pointed to the country’s strengths in the IT sector, emphasizing the potential for the Pakistani diaspora to upskill and contribute more effectively to the Kingdom’s economy.
“We are very reasonable in terms of global wages. Pakistani human resources are easily available, have the capacity, and at the same time are not very costly. So, this is one side that can really facilitate growth, especially with Vision 2030 and the 2034 FIFA World Cup coming here,” he added.
Pakistan is also looking to attract Saudi investment in key sectors such as oil and gas, renewable energy, and infrastructure.
“We are looking forward to Saudi Arabia exploring opportunities in logistics and port services as well. Pakistan’s strategic location makes it an ideal transit hub for the region, which could greatly benefit investors,” he said.
Khan revealed that Pakistan is finalizing its first transit port policy, which will facilitate regional trade. He emphasized that Saudi participation in these logistics operations would give the Kingdom a competitive advantage in global trade.
Overcoming challenges
Khan acknowledged the challenges Pakistan faces in strengthening its trade relationship with Saudi Arabia. He noted that 65 percent of Pakistani exhibitors at the event had never exported to Saudi Arabia and lacked awareness of the market’s potential.
“This is their first time coming to Saudi Arabia. That was a very big surprise to me. This shows that we need to really open up awareness for the business community in Pakistan to explore Saudi Arabia,” he said.
Another key challenge, he said, is that trade between the two countries has traditionally been limited to rice, meat, and other staple food commodities.
“That is why we are planning a major participation in the upcoming IT exhibition [LEAP 2025] in Riyadh. More than 80 companies from Pakistan are set to take part, as IT is a sector where Pakistan has strong human resource capacity and growth potential,” he said.
He stressed that many Pakistani companies already operate successfully in global markets and, if given the opportunity, could expand into Saudi Arabia through collaborations with local businesses.
Improving investment climate
Khan highlighted the importance of improving ease of doing business to attract foreign investment. He pointed to Pakistan’s Special Investment Facilitation Council as a key mechanism for streamlining investment processes.
“There is a special desk in SIFC that oversees Saudi-related projects. It is a crucial component that is gradually eliminating bureaucratic hurdles and expediting business procedures,” he said.
Saudi Arabia has also designated a ministry to facilitate bilateral investment and business operations, he added.
Khan outlined the industries Pakistan is targeting for trade expansion in Saudi Arabia.
“When we export to the US and Europe, our key components are textiles, garments, and apparel, as well as bedding, linen, and other products. Another strength we have is in sports goods, followed by surgical instruments,” he said.
He also highlighted the country’s footwear and leather industries as strong export sectors.
“These four components are key value-added products for our global trade. When it comes to agriculture, we are already present in rice, mangoes, and fruits, but our primary focus remains on these four industries,” he said.
Although Saudi Arabia’s market for these products is relatively small, Khan sees it as a starting point, with opportunities for both large investments and SMEs.
The exhibition, he added, serves as a matchmaking platform, helping Pakistani businesses understand market demand and attract potential investors. Future events in Riyadh, Dammam, and Jeddah will be strategically targeted based on insights gained from this participation.
Incentives for Saudi investors
Khan emphasized Pakistan’s potential as an investment destination, citing its population of 250 million as a major consumer market.
“Saudi Arabia’s close brotherly relationship with Pakistan gives it a unique advantage in trade, investment, and cooperation,” he said.
“We have a very different relationship with Saudi Arabia — it goes beyond trade, exports, and finance. It is something that is rare with any other country. But we need to capitalize on it. We must strengthen it through shared economic opportunities, livelihoods, and trust,” he added.
Khan noted that he has been in discussions with Saudi delegates for the past eight months, identifying key areas for mutual investment.
“The first component has been business-to-business interaction. Business must be driven by the private sector, not governments. That’s why we signed agreements worth $2.8 billion, entirely through the private sector,” he said.
He added that six of the deals have been finalized, while others amounting to around $600 million are in the final stages. More agreements are also nearing completion.
With growing trade and investment initiatives, Pakistan is positioning itself as a stronger economic partner for Saudi Arabia, leveraging its workforce, industrial capabilities, and strategic location to deepen commercial ties.
Startup Wrap — Saudi firms continue to raise funding ahead of LEAP25
Updated 08 February 2025
Nour El-Shaeri
RIYADH: Saudi Arabia’s startup ecosystem continues to gain momentum ahead of the Kingdom’s flagship technology conference, LEAP 2025, fintech, artificial intelligence, and industrial technology companies securing major funding rounds.
Key investments include Saudi-based peer-to-peer lending platform Forus securing a $60 million credit facility from Fasanara Capital.
The funding will enable Forus to provide over $150 million in working capital loans to Saudi small and medium-sized enterprises.
Founded in 2019 by Nosaibah Al-Rajhi, Forus has facilitated more than $390 million in working capital financing for over 400 Saudi SMEs.
The company aims to address financing gaps for businesses that struggle with access to traditional banking services.
Vminds.ai raises six-figure pre-seed investment
Founded by Ahmed Al-Mashhadi, vminds.ai is an intelligent, self-learning platform. Supplied
Saudi-based AI startup vminds.ai has closed a six-figure pre-seed funding round from undisclosed angel investors. The company plans to use the funds to support its platform’s official launch for individuals and its enterprise rollout in the third quarter of 2025.
Founded by Ahmed Al-Mashhadi, vminds.ai is an intelligent, self-learning platform that integrates more than 150 AI tools from global companies into a unified system. The startup aims to simplify AI adoption by businesses and individuals in the region.
Khazna closes $16m pre-series B round
Launched in 2020 by Omar Saleh, Ahmed Wagueeh, and Fatimah El-Shenawy, Khazna focuses on serving Egypt’s underbanked population by providing access to financial services. Supplied
Egyptian fintech Khazna has secured a $16 million pre-series B funding round, with participation from new and existing investors, including SANAD Fund for MSME, anb Seed Fund, and Aljazira Capital, as well as Khwarizmi Ventures, Nclude, ICU Ventures, and Quona, Speedinvest, and Disruptech Ventures.
Launched in 2020 by Omar Saleh, Ahmed Wagueeh, and Fatimah El-Shenawy, Khazna focuses on serving Egypt’s underbanked population by providing access to financial services such as general-purpose credit, buy now, pay later, and bill payments.
The company plans to use the fresh funding to apply for a digital banking license in Egypt and expand into the Saudi market.
Simplex secures $13m to build CNC factory in Riyadh
Founded in 2013 by Ahmed Shaaban, Mohamed Mansour, and Amr Mahmoud, Simplex provides industrial manufacturing solutions across various sectors. Supplied
Egypt-based CNC machine manufacturer Simplex has raised $13 million in funding, led by Saudi Arabia’s National Industrial Development Center.
The investment will be used to establish a factory in Riyadh dedicated to producing advanced CNC machines.
Founded in 2013 by Ahmed Shaaban, Mohamed Mansour, and Amr Mahmoud, Simplex provides industrial manufacturing solutions across various sectors.
The company’s expansion into Saudi Arabia aligns with the Kingdom’s efforts to localize industrial production.
Myne raises $2m pre-seed round
Founded in 2024 by Karim Chouman, Myne (R) is a wealth management platform offering asset tracking, real-time market integration, budgeting tools, and digital estate planning. Supplied
UAE-based fintech startup Myne has secured a $2 million pre-seed funding round led by Scene Holding, with participation from Raz Holding, Plus VC, Annex Investments, and angel investors.
Founded in 2024 by Karim Chouman, Myne is a wealth management platform offering asset tracking, real-time market integration, budgeting tools, and digital estate planning.
The funding will be used to scale operations, enhance the platform’s technology infrastructure, accelerate user acquisition, and expand regionally.
Qeen.ai secures $10m seed round
qeen.ai Founders Morteza Ibrahimi, Ahmad Khwileh, and Dina Alsamhan. Supplied
UAE-based AI startup qeen.ai has closed a $10 million seed funding round, marking one of the largest early-stage investments in the MENA region.
The round was led by Prosus Ventures, with participation from Wamda Capital, 10x Founders, and Dara Holdings.
Founded in 2023 by Dina Al-Samhan, Ahmad Khwileh, and Morteza Ibrahimi, qeen.ai offers AI-driven solutions for e-commerce businesses.
The funding will support the expansion of its agentic AI platform, team growth, and customer acquisition.
With this investment, qeen.ai has raised a total of $12.2 million, following a $2.2 million pre-seed round in June.
VISARUN.AI raises $700k in pre-seed funding
UAE-based visa-as-a-service platform VISARUN.AI has secured $700,000 in pre-seed funding from undisclosed angel investors.
The company plans to use the funds to enhance platform development, expand its sales team, and extend its footprint in the UAE, Saudi Arabia, Qatar, India, and China.
Founded in 2024 by Vladimir Indjikian and Alena Iakina, VISARUN.AI streamlines visa processing by reducing manual labor by up to 70 percent.
The platform aims to simplify and expedite visa applications for businesses and individuals.
Rasmal Ventures secures backing from QIA
Qatar-based venture capital firm Rasmal Ventures LLC has received funding from the Qatar Investment Authority under its $1 billion Fund of Funds program.
The investment will support Rasmal Ventures’ inaugural fund, Rasmal Innovation Fund I LLC, which focuses on high-growth startups across fintech, B2B Software-as-a-Service, health tech, and AI.
The fund, which launched in June with an initial $30 million from institutional investors and family offices, is targeting a $100 million close.
Rasmal Innovation Fund I is the first VC fund to join QIA’s initiative to boost Qatar’s startup ecosystem.
Beltone Venture Capital invests in Morocco’s LNKO
Ali Mokhtar, CEO of Beltone Venture Capital. Supplied
Egypt-based Beltone Venture Capital, the investment arm of Beltone Holding, has invested an undisclosed amount in Moroccan eyewear startup LNKO.
Founded in 2020 by Maha Bennani, LNKO operates a direct-to-consumer model, offering sunglasses and optical frames.
The company claims to have served over 100,000 customers. The investment will support LNKO’s expansion across Africa. In 2021, the startup raised $335,000 from CDG Invest.
Foundation Ventures announces first close of $25m fund
Founded in 2018 by Mazen Nadim, Omar Barakat, and Ziyad Hamdy, Foundation Ventures focuses on early-stage and growth-stage startups. Supplied
Egypt-based venture capital firm Foundation Ventures has reached the first close of its $25 million fund, FVFII.
The fund is backed by the Egyptian American Enterprise Fund, the Micro, Small, and Medium Enterprise Development Agency, and Onsi Sawiris.
Founded in 2018 by Mazen Nadim, Omar Barakat, and Ziyad Hamdy, Foundation Ventures focuses on early-stage and growth-stage startups.
The new fund aims to support Egyptian startups from their initial development to regional and global expansion, with a portion allocated for investment in African early-stage businesses.
EasyBank secures $370k for expansion
Founded in 2023 by Mohamed Khelifi, EasyBank provides digital banking solutions, including access to loans and other financial services. Supplied
Tunisia-based fintech EasyBank has raised $370,000 from undisclosed investors. The company plans to use the funds to expand operations across the Middle East, North Africa, and France.
Founded in 2023 by Mohamed Khelifi, EasyBank provides digital banking solutions, including access to loans and other financial services.
The startup aims to bridge financial inclusion gaps across emerging markets.
Saudi’s sports ambitions are fueling economic growth
Attracting global attention and investment is the plan, says expert
Target: 1.5% of non-oil GDP from sports by 2030, creating 140,000 jobs
Updated 08 February 2025
Reem Walid
RIYADH: From Formula One to boxing, golf to the FIFA World Cup, Saudi Arabia is rapidly establishing itself as a global sports hub.
But beyond hosting world-class events, the Kingdom’s push is a key pillar of Vision 2030, its economic diversification strategy.
Saudi Arabia has secured hosting rights for major sporting events — including motorsports, tennis, and golf’s LIV Tour — aiming to boost tourism, create business opportunities, and generate revenue from ticket sales, sponsorships, and broadcasting rights.
Peter Daire, senior executive advisor of sports at PwC Middle East, highlighted the Kingdom’s long-term vision for sports as a major economic driver.
Peter Daire, senior executive advisor of sports at PwC Middle East. Supplied
“According to our Global Sports Survey 2023, the Middle East sports sector, including Saudi Arabia, is expected to generate substantial economic value, with Saudi’s sports economy predicted to contribute up to $5.9 billion by 2030,” he said.
“This growth is driven by ongoing infrastructure projects and the expansion of world-class facilities across the Kingdom. Additionally, events like Formula E, the Saudi International Golf Tournament, Esports investments, and high-profile football matches in the Saudi Pro League have been a leading factor in attracting global attention and investment, further boosting the tourism and hospitality sectors,” Daire added.
Jurg Kronenberg, management consultant at Bain & Co., noted that Saudi Arabia aims to generate 1.5 percent of its non-oil gross domestic product from sports by 2030, creating over 140,000 jobs.
“Achieving this growth will require both infrastructure investments — such as World Cup stadiums, mass sports facilities — as well as sector activation, through privatization and professionalization of sports, new leagues and competitions, creation of local IP,” he said.
Jurg Kronenberg, management consultant at Bain & Co. Supplied
“Sports has a unique potential to be the catalyst of societal and economic change in KSA and to support the development of a vibrant economy,” Kronenberg added.
Daire emphasized that the government has prioritized the private sector’s involvement to foster a vibrant ecosystem for sports business.
“Partnerships with European football clubs and players have helped position Saudi Arabia as a central player in the international sports landscape.
“In addition to this, developing local talent within the Kingdom, and ensuring a long-term legacy of Saudi sport business expertise is of key importance for the sector,” Daire said.
He noted that integrating cutting-edge technologies — such as AI, data analytics, and digital media — into sports management and fan engagement is driving growth across multiple industries.
Mega infrastructure and investments
Kronenberg pointed out that Saudi Arabia’s sports strategy includes landmark projects like the 11 state-of-the-art stadiums planned for FIFA World Cup 2034 and Riyadh’s 135-km Sports Boulevard.
Beyond high-profile venues, large-scale infrastructure projects are being developed to encourage mass sports participation, alongside financial incentives to professionalize clubs.
“In football, a bold privatization initiative is underway, transitioning historically state-owned clubs to private ownership,” Kronenberg said.
“Beyond football, Saudi Arabia is cultivating a diversified sports ecosystem, investing into the professionalization of several existing sports and supporting emerging disciplines,” he added.
Kronenberg said this approach is accelerating economic diversification by creating new revenue streams, investment opportunities, and valuable intellectual property.
Federico Pienovi, chief business officer and CEO for APAC and MENA at Globant, highlighted Saudi Arabia’s strategic investment of over $2 billion into sports infrastructure, events, and global partnerships.
Federico Pienovi, chief business officer and CEO for APAC and MENA at Globant. Supplied
“With major events like the Asian Games and FIFA World Cup 2034 on the horizon, the Saudi government is shaping a multi-billion-dollar sports ecosystem primed for growth,” Pienovi said.
He explained that Saudi Arabia’s giga-projects, including Qiddiya Entertainment City, are fertile ground to combine advanced tech with the passion for sports, making the Kingdom a world-class destination.
Shahid Khan, partner and global head of media, entertainment, sports, and culture at Arthur D. Little, emphasized that signing global stars like Cristiano Ronaldo and Karim Benzema has boosted the Saudi Pro League’s international profile, attracting sponsors and increasing viewership.
“Developing league infrastructure and operations supports the league’s competitive edge and market value. These investments increase tourism, promote national pride, and inspire local talent to pursue professional football careers,” he said.
Shahid Khan, partner and global head of media, entertainment, sports, and culture at Arthur D. Little. Supplied
Khan added that these efforts integrate Saudi Arabia more deeply into the global football ecosystem, generating revenue from broadcasting and sponsorships.
Ivan Shapochkin, a principal at Oliver Wyman’s Dubai office, pointed out that with the global sports industry expected to near $1 trillion by 2030, Saudi Arabia is aligning its sports vision with future-ready strategies.
“By quadrupling its sports economy by 2030, with private sector contributions driving at least 25 percent, Saudi Arabia is reaping direct revenues from ticket sales, media rights, sponsorships, and merchandising.
Ivan Shapochkin, a principal at Oliver Wyman’s Dubai office. Supplied
“Beyond this, sports are invigorating tourism, hospitality, and transport sectors, creating ripple effects across the broader economy,” Shapochkin said.
Given the nascency of the sports ecosystem in Saudi Arabia, the sector provides a particular opportunity for entrepreneurs and investors to help shape the industry and leapfrog others, according to Bain & Co.’s Kronenberg.
“This might include use cases like new ownership models and fan engagement through tokenization, unique voting rights, or new channels and technologies to stream matches,” he said.
Kronenberg said the Kingdom could be the test ground for a whole set of new technologies with a young and tech-savvy population, as well as an ecosystem that encourages a “clean slate” approach to technology deployment.
PwC’s Daire emphasized that Saudi Arabia is embracing digital transformation in sports, incorporating AI, virtual reality, and blockchain to enhance athlete performance and fan experience.
“According to our latest esports report ‘Centre of the Game,’ technology is enabling smarter sports management, real-time data analysis for performance improvement, and immersive fan experiences, from virtual stadium tours to personalized content,” he said.
“This transformation is not only improving operational efficiencies within the sports sector but also generating new revenue streams, such as data-driven sponsorships, and virtual fan engagement platforms,” Daire added.
Sports-tech on the Rise
Shapochkin of Oliver Wyman pointed out that globally, one in three sports fans now consume games on digital platforms, signaling a shift toward personalized, tech-driven engagement.
“The sports-tech market is expected to surpass $40 billion by 2027, driven by innovations like AR/VR (Augmented Reality/Virtual Reality), performance tracking, eSports, and AI-powered analytics.
“Saudi Arabia, with its youthful, tech-savvy population and strategic investments through entities like SAVVY Gaming Group and PIF (Public Investment Fund), is at the forefront of this shift,” he said.
Shapochkin also noted that eSports alone is projected to contribute over $13 billion to the Saudi economy by 2030.
As Saudi Arabia continues hosting major events like the 2029 Asian Winter Games and FIFA World Cup 2034, the adoption of smart venues, Internet of Things applications, and advanced crowd management systems is expected to accelerate.
With sports and technology merging, Saudi Arabia is not just redefining its role in the global sports industry — it is shaping the future of sports business.
