Saudi Gazette report

RIYADH — Saudi Arabia’s bid for the FIFA World Cup 2034 presents a strong commercial outlook, with revenues and cost efficiencies positioning the country as a financially viable host.

According to FIFA’s evaluation, the bid is forecast to generate substantial growth in ticketing and hospitality revenues while maintaining competitive organizing costs.

These projections highlight the potential of the Saudi bid to exceed FIFA’s baseline expectations, making it an attractive option for hosting the world’s most prestigious football tournament.

Revenue Growth Driven by Hospitality and Ticketing

FIFA forecasts that ticketing and hospitality revenues from the Saudi World Cup could surpass the baseline by over 32%, amounting to an additional $240 million.

This growth is attributed to the Kingdom’s robust hospitality offerings, with premium facilities at stadiums and other venues designed to attract high-spending guests.

A key factor in this revenue boost is the large-scale hospitality footprint proposed in the bid, which focuses on delivering world-class experiences for fans and corporate partners.

The commercial outlook also considers other revenue streams such as licensing, retail, and food and beverage sales. Licensing and retail revenues, including on-site, online, and other related streams, are projected to outperform the baseline by approximately $7 million. This reflects the expected success of on-site and online sales, boosted by Saudi Arabia’s growing position as a global hub for sports and tourism.

Media and Marketing Impact

Media and marketing rights, a critical component of FIFA’s revenue model, are expected to grow significantly under the Saudi bid. The bid projects a 10% increase in the global live TV audience compared to previous tournaments.

This aligns with Saudi Arabia’s ability to appeal to diverse international audiences, supported by its strategic location connecting three continents.

The Kingdom’s marketing strategy focuses on leveraging its innovative fan engagement initiatives, including digital campaigns and next-generation technologies such as artificial intelligence. These efforts aim to maximize the tournament’s reach and ensure sustained interest from global sponsors and advertisers.

Cost Efficiencies Bolster Viability

The Saudi bid is not only about revenue generation but also about cost efficiency. FIFA estimates that the organizing costs for the tournament in Saudi Arabia will be approximately $450 million below the baseline. Key cost savings are identified in areas such as:

- IT&T services: $43.3 million below baseline.

- Safety and security: $58.9 million below baseline.

- Technical services: $133 million below baseline.

These savings are driven by Saudi Arabia’s competitive pricing and efficient planning. However, FIFA notes that certain cost drivers, such as staffing, team accommodation, and competition management, are expected to align with baseline levels.

A Balanced Commercial Proposition

The Saudi Arabia 2034 World Cup bid combines strong revenue-generating potential with cost-effective operations, offering FIFA a balanced commercial proposition.

The Kingdom’s ability to generate high-quality venue revenues and maintain a budget below baseline underscores its readiness to deliver a financially successful tournament.

Saudi Arabia’s commercial strategy also aligns with FIFA’s broader goals of expanding football’s global footprint and ensuring long-term financial stability for the sport.