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Saudi Arabia’s 2034 World Cup: A Catalyst for Economic Transformation

Future designs of King Salman Stadium and its sports facilities, one of the largest sports stadiums in the world (Royal Commission for the City of Riyadh)
Future designs of King Salman Stadium and its sports facilities, one of the largest sports stadiums in the world (Royal Commission for the City of Riyadh)
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Saudi Arabia’s 2034 World Cup: A Catalyst for Economic Transformation

Future designs of King Salman Stadium and its sports facilities, one of the largest sports stadiums in the world (Royal Commission for the City of Riyadh)
Future designs of King Salman Stadium and its sports facilities, one of the largest sports stadiums in the world (Royal Commission for the City of Riyadh)

 

As the official announcement approaches on December 11 for the host of the 2034 FIFA World Cup, all eyes are on Saudi Arabia, as this monumental sporting event is poised to bring about a transformative economic shift, aligning with the Kingdom’s vision of fostering a diversified and sustainable economy.
The tournament is expected to have a significant impact on Saudi Arabia’s local economy, driving foreign investments and revitalizing sectors such as tourism, transportation, and infrastructure. Additionally, it will serve as a catalyst for major projects like NEOM and Qiddiya, reinforcing the Kingdom’s position as a global destination and supporting the goals of Vision 2030, which emphasizes economic diversification and the expansion of non-oil sectors.
On Saturday, FIFA announced that the Saudi bid to host the 2034 World Cup achieved a technical evaluation score of 419.8 out of 500, the highest score ever awarded in FIFA’s history for a World Cup bid. This milestone reflects Saudi Arabia’s leadership and ongoing transformation into a hub of innovation and development.
The Kingdom officially submitted its bid in July at a FIFA ceremony in Paris. Experts believe that hosting the World Cup will attract millions of visitors worldwide, boosting key sectors such as hospitality, transportation, and entertainment. Furthermore, it is expected to attract substantial foreign investments in large-scale projects, including sports infrastructure and urban development.
Major Projects
Economic policy expert Ahmed Al-Shehri told Asharq Al-Awsat that hosting the tournament will significantly enhance Saudi Arabia’s tourism economy. The influx of millions of visitors is expected to boost revenue across sectors such as hotels, restaurants, transportation, and entertainment. He also noted that major projects like the Red Sea Project and Qiddiya will benefit from infrastructure upgrades, solidifying Saudi Arabia’s status as a global destination for tourism and investment.
Al-Shehri added that the event will strengthen international confidence in Saudi Arabia’s economy, encouraging foreign investors to channel capital into sectors such as sports, entertainment, and technology. He highlighted that infrastructure improvements, including transportation systems and sports facilities, will yield long-term benefits for the local economy and citizens.
Investment Partnerships
Economic analyst Rawan Bin Rubayan described hosting the World Cup as a historic opportunity with multifaceted benefits for the Saudi economy. Global events of this magnitude, she explained, enhance the Kingdom’s reputation as a leading investment and tourism destination while unlocking growth opportunities across various industries.
She highlighted that hosting the World Cup will increase Saudi Arabia’s appeal to international investors, particularly in sectors like hospitality, entertainment, transportation, and infrastructure. Constructing state-of-the-art stadiums and facilities will foster major investment partnerships and position Saudi Arabia among the world’s top organizers of international sporting events.
Bin Rubayan emphasized how the event complements Vision 2030, which prioritizes economic diversification and supports flagship projects like NEOM, Qiddiya, and the Red Sea Project. These initiatives are expected to accommodate millions of visitors, ensuring their long-term sustainability through heightened global visibility and investment.
Boosting the Tourism Sector
Bin Rubayan pointed out that sectors such as tourism and hospitality—including hotels, restaurants, and local retail—are set to experience significant growth due to rising demand, which will stimulate the local economy and generate new job opportunities.
She also noted that infrastructure upgrades, including advanced road networks and mass transit systems, will leave a lasting legacy, benefiting future generations and improving overall quality of life, stressing that the event is expected to boost international confidence in the Saudi economy and create long-term strategic partnerships.
Bin Rubayan characterized the 2034 FIFA World Cup as a key driver of economic growth and a pivotal moment in Saudi Arabia’s journey toward achieving Vision 2030. She added that the tournament promises to foster a more diverse, resilient, and sustainable economy while reinforcing the Kingdom’s status as a global powerhouse in sports, tourism, and innovation.

 

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Business

Saudi Stocks Close Higher at 11,122 Points amid Mixed Performance

A market display screen inside the headquarters of the Saudi Tadawul Group in Riyadh (Asharq Al-Awsat)
A market display screen inside the headquarters of the Saudi Tadawul Group in Riyadh (Asharq Al-Awsat)
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Saudi Stocks Close Higher at 11,122 Points amid Mixed Performance

A market display screen inside the headquarters of the Saudi Tadawul Group in Riyadh (Asharq Al-Awsat)
A market display screen inside the headquarters of the Saudi Tadawul Group in Riyadh (Asharq Al-Awsat)

Saudi Arabia’s main stock index (TASI) ended Sunday’s session up 0.1 percent to close at 11,122 points, with liquidity of about 3.6 billion riyals ($960 million).

Among leading stocks, Al Rajhi Bank rose 1 percent to 69.1 riyals, while SABIC gained 2 percent to 58.4 riyals.

Petro Rabigh topped the list of gainers, rising 10 percent to 12.65 riyals, following the company’s announcement of its first-quarter 2026 financial results.

In contrast, Saudi Aramco, the index’s heaviest-weighted stock, fell 0.22 percent to 27.16 riyals.

Shares of NADEC and Alawwal Bank declined 4 percent each, while Kingdom Holding Company fell 3 percent.

Ban topped the list of decliners, dropping 8 percent.

Business

Saudi Economy Surpasses $1 Trillion Mark, Grows 80% Since Vision 2030’s Launch

The Saudi Center for Competitiveness and Business offers support for investors in the local market (SPA)
The Saudi Center for Competitiveness and Business offers support for investors in the local market (SPA)
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Saudi Economy Surpasses $1 Trillion Mark, Grows 80% Since Vision 2030’s Launch

The Saudi Center for Competitiveness and Business offers support for investors in the local market (SPA)
The Saudi Center for Competitiveness and Business offers support for investors in the local market (SPA)

Saudi Arabia’s economy has surpassed the $1 trillion mark for the first time, expanding by 80 percent since the launch of Vision 2030, according to the Kingdom’s 2025 Vision 2030 report.

The milestone underscores the impact of fiscal reforms and diversification efforts aimed at reducing dependence on oil. Non-oil activities now account for 55 percent of the economy, up from 45 percent in 2016, while non-oil government revenues have risen more than 170 percent, from SAR185.7 billion ($49.5 billion) in 2016 to SAR505 billion ($134.6 billion) last year.

The report said the gains reflected investment in growth sectors, legal reforms and a more attractive business climate.

Fiscal discipline, rising liquidity

Saudi authorities noted that fiscal policy remained anchored in spending discipline and sustainability, with deficit targets ranging between 5 percent and 7 percent of gross domestic product.

Liquidity reached a record SAR3.167 trillion in 2025, up from about SAR1.799 trillion in 2016.

Officials said expansionary spending had been directed toward strategic sectors linked to economic growth and living standards.

Debt low, reserves rise

Despite higher spending, Saudi Arabia has maintained one of the lowest debt burdens in the G20, with public debt below 50 percent of GDP. Foreign reserves rose to SAR1.7 trillion ($453.3 billion), their highest level in five years.

Real GDP growth accelerated from 1.7 percent in 2016 to 4.5 percent last year, the report said.

Competitiveness gains

Saudi Arabia rose 15 places between 2021 and 2025 in the IMD World Competitiveness Yearbook to rank 17th globally, placing fourth among G20 countries last year.

The government introduced more than 1,000 reforms and 1,200 regulatory measures in recent years, including allowing full foreign ownership in most sectors and implementing a new bankruptcy law. The measures improved transparency, dispute resolution and legal certainty for investors.

Saudi Arabia has also expanded support for small and medium-sized enterprises through Monshaat, the SME Bank and Saudi Venture Capital Company.

The number of SMEs exceeded 1.7 million by the end of 2025, employing around 8.88 million people and contributing 22.9 percent to GDP. More than 474,000 businesses are owned by young Saudis, according to the report.

Growth outlook

The International Monetary Fund projects Saudi growth of 3.1 percent this year and 4.5 percent in 2027. The World Bank forecasts growth of 4.3 percent in 2026 and 4.4 percent next year.

The Organization for Economic Cooperation and Development (OECD) expects growth of 4 percent this year and 3.6 percent in 2027. For its part, Saudi Arabia’s Finance Ministry forecasts growth of 4.6 percent in 2026 and 3.7 percent next year.

Business

Vision 2030 Redefines Saudi Arabia's Wealth from Oil Supplier to Global Energy Hub

Solar power in Saudi Arabia (SPA)
Solar power in Saudi Arabia (SPA)
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Vision 2030 Redefines Saudi Arabia's Wealth from Oil Supplier to Global Energy Hub

Solar power in Saudi Arabia (SPA)
Solar power in Saudi Arabia (SPA)

Saudi Arabia has chosen to rethink its relationship with its resources, asking a different question: How can we make what we have work to its fullest potential in a rapidly changing world?

This was the essence of Vision 2030, which saw valuable opportunities in diversifying energy sources and maximizing the value of oil and gas to achieve greater prosperity, keeping pace with global environmental changes.

The first clear sign of this shift was the renaming of the Ministry of Petroleum and Mineral Resources to the Ministry of Energy, a clear indication of expanding the horizon from oil and gas alone to a comprehensive energy system that includes renewables at its core.

A Naturally Qualified Land

This choice was not made without study. The Kingdom possesses geographical enablers that give it an exceptional competitive position: a climate conducive to successful solar energy projects, vast areas suitable for wind power projects, and geographical diversity that contributes to the development of hydrogen energy, all supported by accumulated investment capabilities and research expertise.

On this fertile ground, a series of initiatives and projects were launched: The National Renewable Energy Program, the Custodian of the Two Holy Mosques Renewable Energy Initiative, and the establishment of the National Renewable Energy Data Center, followed by solar and wind power projects aimed at enhancing electricity generation efficiency.

The results speak clearly: The production capacity for electricity generation from renewable sources increased from 3 gigawatts in 2020 to 46 gigawatts in 2025. The total number of projects related to this sector reached 64, distributed among 40 solar power projects, 9 wind power projects, and 15 energy storage projects.

Hydrogen: The Big Bet

At the heart of NEOM, an unparalleled project is being born: the green hydrogen project, the largest and first of its kind globally, with a production capacity of 600 tons of green hydrogen per day.

To support this direction, the first phase of the Yanbu Green Hydrogen Hub was launched, equipped with facilities for generating electricity from renewable sources, desalination plants, electrolysis units, facilities for converting hydrogen into green ammonia, and a dedicated export terminal.

The Battery Race

Figures in the energy storage sector are no less exciting; the Kingdom is approaching China in the global battery storage project cost race, with a cost of $409 per kilowatt for projects with a four-hour storage capacity, compared to $404 for China.

The total capacity of proposed energy storage projects reached 30 gigawatt-hours, while 8 gigawatt-hours have been connected to the electricity grid.

In a remarkable achievement, Aramco successfully operated the world's first renewable energy storage system to support gas well production operations, with a capacity of 1 megawatt-hour, capable of supporting 5 wells for 25 years.

This system relies on a Saudi patent and represents a reliable alternative to traditional solar energy solutions, offering high efficiency in harsh climatic conditions and intelligent response to changing energy needs.

SPARK... When Industry Becomes the Value

Vision 2030 recognized that production alone is no longer sufficient, and that true value lies in building industries, localizing supply chains, and enhancing local content. This is where the idea for King Salman Energy Park "SPARK" was born, with investments exceeding 12 billion Saudi Riyals (3.2 billion dollars) and involving more than 60 local and international investors.

SPARK is located in a strategic position close to energy sources, shipping, and export networks, and includes a dry port allowing faster access. So far, 7 factories have been opened, while another 14 are currently under construction.

Balance, Not Compromise

While the world moves towards transitioning to alternatives to oil and gas, the Kingdom adopts a different vision, believing that an accelerated transition could harm global security and growth, given that renewable energy alone cannot fully meet developmental needs.

Therefore, the Kingdom continues to invest in exploring and developing oil fields, most notably the development of the unconventional Jafurah field, the largest of its kind in the Middle East, which will contribute to maximizing the value chains of gas and petrochemical industries.

Thus, the Kingdom walks a fine line, balancing the preservation of global energy supplies with investment in technologies that eliminate carbon emissions, positioning itself today as a comprehensive energy hub and a model of prudent management.