Al-Amn Magazine

From La Liga to the Saudi Pro League The World Cup is a clear example of a wider trend in which GCC countries are moving away from US and European sports investments and towards growing the industry domestically.  In 2022, Middle Eastern brands represented the largest sponsors and investors in European football, according to KPMG’s Football Benchmark report. The presence of Emirates’ logo on the shirts of Real Madrid, Arsenal and AC Milan players is just an example, with the Real Madrid deal alone estimated to be worth $336 million. Moreover, several GCC nations have invested in the clubs themselves. The Abu Dhabi United Group purchased Manchester City in 2008, while Qatar acquired Paris Saint-Germain in 2011. Looking at US basketball, Qatar Investment Authority recently acquired a 5% stake in the NBA team Washington Wizards’ parent company, as part of a $200 million deal. F1 and MMA: the new heavyweights The sports industry is much larger than football. Events such as Ironman, Spartan Races and marathons directly involve the population, fostering a national sports culture. Moreover, the region’s focus on the Professional Fighters League (PFL) and mixed martial arts (MMA) resonates with specific demographics and aligns with broader regional ambitions. Azhar Muhammad Saul, Chief Operating Officer at sports management firm Paradigm Sports highlighted the dramatic growth of combat sports. Now the third most popular sport globally behind football and basketball, the global martial arts industry is valued at over $6 billion and has a 3.6% annual growth rate. “I see [the Middle East] becoming the centre of combat sports in the world,” Saul said. “The opportunities for both the region and our athletes really don’t have any limits.” Paradigm Sports has also worked with major players such as Conor McGregor, Dakota Ditcheva, Michael ‘Venom’ Page, Johnny Walker and Rico Verhoeven, who have become regular visitors to the region. “On the business aspect of combat sports, there is so much still to build and develop,” Saul added. “The infrastructure and technology are all in place here to build disruptive ventures that harness our athletes’ storylines and passions. It’s very exciting.” The rise of esports Fast technological developments have also given way to the rise of gaming. Predicted to be worth more than $300 billion come 2025, the popularity of esports is uncontested. The sector’s global revenue is greater than the music and movie industries combined.   “Looking at the gaming and esports landscape as an example, governments are providing incentives (including enhanced visas and direct investment) to attract talent to the region,” Ryder added. “I expect to see continued outward and inward investment in the sports sector including significant investment in esports.” Abu Dhabi is building a $1 billion island dedicated to gaming and Qatar has a 2030 National Strategy in Esports. Saudi Arabia has also set its sights on these sports, as 67% of its population identifies as gamers. Notably, gaming consumption in the Kingdom is projected to surge to $6.8 billion by 2030 and grow at a CAGR of 22% through 2030, according to BCG. The country hosts the New Global Sports Conference 2024, which saw the unveiling of this summer’s Esports World Cup at the 2023 inaugural edition. The competition’s $60 million prize pool is the largest ever in esports history. The future of sports In the years to come, GCC countries will continue to host major golf, football, tennis, basketball, motorsport, boxing, MMA, surfing and esports events. In addition to contributing to job creation and the increase in the influx of tourism, the sports industry is also set to provide value to Middle Eastern companies, governments and residents alike, creating economic growth and healthier lifestyles. “The growth of football in the Middle East goes beyond just economic benefits; it also has the potential to foster cultural exchange, unity and a sense of community,” Gai stressed. From the F1 races to MMA fights and future World Cups, there is much to come from the Middle East in terms of sports. The industry might be ever-changing, but the region has proven it is willing to invest and ready to go the distance. financemiddleeast.com