How the Middle East is Reshaping the Global Sports Scene From billion-dollar investments within the region, to a global network and expansion of teams and sports owned by Middle Eastern businesses, the region is creating a new perception.
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The Middle East is no longer just a participant in the global sports conversation, it's not being seen to muscle its way into global sports anymore. Instead it's reshaping the global sports scene, taking influence away from the 'traditional' gatekeepers of France, Germany, the UK and a handful of others.
From billion-dollar investments within the region, to a global network and expansion of teams and sports owned by Middle Eastern businesses, the region is creating a new perception. Sport has become a symbol of innovation, ambition and represents a shift in global business influence and geopolitical power.
Al-Hilal's knocking out of Manchester City in the first ever Club World Cup hosted in the United States reflects not just an increased football prowess but represents a prime example of the region's long-term strategy to lead the global sports economy.
Moving away from oil into a new arena
The fact of the matter is - oil will eventually run out. But the region, led by Saudi Arabia's Vision 2030, are turning to culture, entertainment and crucially sports as a key element of their economy. This has also become a significant destination branding tool. The Public Investment Fund is at the forefront of this effort to pivot the region into this new arena, which has already invested over £10 billion in sports.
The PIF's investment is not just about hosting and destination branding, it's a strategy to reposition the Middle East as a global hub of sports excellence. Global sporting assets in the form of football clubs, F1 teams, golf tournaments and even e-sports leagues are used to build cultural relevance, improve tourism and become even more appealing for foreign investors.
Football is where it began, but it's not where it ends
The lucrative nature of football may have driven the initial investment in sports within the region, but its overwhelming success has led to an expansion across many other sports including cricket, F1, golf and even rugby.
Yes, recording signings like Ronaldo, Neymar and Benzema help to demonstrate that the Middle East means business when it comes to the business of sport, but it goes so much deeper than star players.
Through a long-term partnership with F1, the Middle East is portraying itself as the epicentre of premium and luxury sports - rivalling the legendary status of the Monaco Grand Prix. Similarly, investment in LIV Gold aligns the region with more affluent, 'luxury' sports aligning with the destination branding strategy.
High-profile boxing bouts and UFC events are increasingly taking place in Saudi Arabia, reaching a different fan base and showing the diversification in sports the region is investing in. Another new audience the region is reaching is younger, digitally native audiences through investment in esports. The current esports world cup hosted in Riyadh has a prizepot of over US$70million dollars, attracting the best players in the world while helping Saudi Arabia win favour with younger viewers.
This multi-sport strategy diversifies risk (any good business should be looking at ways to enter new arenas and diversify), builds infrastructure across fan bases and cements the Middle East as shaping global sporting culture.
A regional strategy with a global impact
The Middle East isn't just importing sporting events - it's exporting an experience.
Events like the FIFA World Cup 2022 in Qatar, the upcoming 2034 edition in Saudi Arabia, and the Formula 1 finales offer luxury, scale, and spectacle unmatched by many Western counterparts. Real Madrid World, a football-themed amusement park in Dubai, and entertainment mega-events with global headliners like Eminem and Muse further elevate the region's "sportainment" model - one that integrates fan experiences with travel, leisure, and luxury retail.
How brands can capitalize on this sports movement
The sports and entertainment expansion in the Middle East, and its global reach through sports teams like Manchester City and Newcastle United, present a great opportunity for brands to capitalize on a lucrative movement that continues to grow.
With state-of-the-art venues, immersive fan zones and themed attractions, regional events offer brands the opportunity to build their brand through experiential marketing. Not only does this help build a community for your brand, but if aligned with the right sport and team, it can elevate your own brand by aligning with a sport or team that reflects your brand's values.
For those brands looking to expand into the Middle East, aligning with sports and sports teams can empower cultural assimilation. Adidas and Nike have become embedded in youth football academies while hospitality brands are seeing greater value by aligning with F1 by sponsoring F1 paddocks or events.
Investing in local clubs and franchises can also help local businesses, but also global brands, demonstrate they are innovative with a keen eye on heritage and culture. Joint ventures with local sports teams to co-develop merchandise, media rights and community experiences can provide your brand with a much needed boost to a lucrative, passionate audience.
Vision 2030 - a blueprint to learn from
Vision 2030 is at the heart of this transformation away from oil that sees sports, tourism, entertainment and infrastructure as key to growth in the region. Each and every investment, partnership and event is designed to tell a consistent story and build a brand that says: the Middle East is open for business and sport is the centre stage.
