Over the years, Saudi Arabia has implemented several steps to make the country a destination for foreign tourists and diversify its economy from the oil-based to other segments. To achieve this, they set an ambitious goal: Vision 2030. This goal aims to reduce the country’s reliance on oil and develop various sectors such as tourism, entertainment, and technology. It has transformed the country into a global hub for investment, trade, and innovation.
To boost and strengthen its ambitious goal, Vision 2030, Saudi Arabia has successfully bid to host the FIFA World Cup of 2034. Hosting this mega event, where millions are expected to come, will present a platform to showcase Saudi’s cultural heritage, modern infrastructure, planned cities, state-of-the-art stadium, business-friendly workplace, etc. to a global audience.
FIFA 2034: A Trade Wealth for Saudi’s Economies
Given the popularity of the FIFA World Cup and economic opportunities, the Saudi government is about to inject a massive $26 billion into infrastructure development, such as Airports, roads, modes of transportation, and urban development. This will improve the country’s existing infrastructure and allow the authorities to effectively manage 5-10 million foreign tourists.
This mega event will be hosted in 5 cities, and 15 state-of-the-art stadiums, offering employment to millions of people. This is estimated that with the FIFA World Cup 2034, the country’s overall GDP is expected to grow by 5% annually. Let’s understand Saudi’s real GDP growth Rate –
Saudi: Quarterly Real GDP Growth Rate
As per the reports, the percentage growth rate of Saudi Arabia’s real GDP grew by 2.8 in Q3 of 2024, compared to the GDP growth rate of Q1 of 2023, which grew by 3.2. Notably, from Q3 of 203 to Q2 of 2024, the GDP growth rate experienced a negative growth.
- Surprisingly, Saudi Arabia’s Oil activities also experienced a drastic decline of 3.7%, 16.7%, 11.2%, 8.9%, and 0%, respectively, from Q2 of 2023 to Q3 of 2024.
- Among the top contributors to real GDP, the share of non-oil activities and Government activities remained positive from Q1 of 2023 to Q3 of 2024.
- Non-oil activity and Government activities grew by 4.3% and 3.1% in Q3 of 2024.
- Positive growth in non-oil activity, and Government activities are continuing to grow, showing a major shift to non-oil-based economic growth, or showing geo-political challenges.
| Quarters | GDP | Oil Activities | Non-Oil Activity | Government Activities |
| Q1 2023 | 3.2 | 0.8 | 5.3 | 2.8 |
| Q2 2023 | 1.7 | -3.7 | 5.1 | 0.3 |
| Q3 2023 | -3.2 | -16.1 | 3.2 | 1.9 |
| Q4 2023 | -4.3 | -16.2 | 4.2 | 3.1 |
| Q1 2024 | -1.7 | -11.2 | 3.4 | 2 |
| Q2 2024 | -3 | -8.9 | 4.9 | 3.6 |
| Q3 2024 | 2.8 | 0 | 4.3 | 3.1 |
Value in %***
Contribution Of Economic Activity to GDP In Q3 of 2024
Crude petroleum and Natural gas are the major contributors with 22.8% of Saudi Arabia’s GDP at the current price, this makes it a crucial part of the economy. Government activity, which includes all government agencies, listed in the government final account and entities contributes 16.1% to the economic activity of Saudi Arabia. Let’s take a view on some of the segments that contribute to the Saudi’s economy –
- Wholesale and retail trade contribution to the economic activity is among the top three activities with 10.1%.
- The share of Manufacturing, real estate, Construction, transportation, storage and Communication, Agriculture, forestry, and fishing stood at 8.3%, 6.5%, 5.6%, 4.9,% and 2.8% in Q3 of 2024.
- With FIFA 2034, The share of these sectors may experience double-digit growth, especially for the construction, manufacturing, and real estate sectors.
| Contribution Of Economic Activity to GDP at Current Price | Value in % |
| Crude petroleum and natural gas | 22.8 |
| Government Activities | 16.1 |
| Wholesale and retail trade | 10.1 |
| Manufacturing Excluding Petroleum, etc. | 8.3 |
| Real State | 6.5 |
| Finance, Insurance and Business services | 6.1 |
| Construction | 5.6 |
| Petroleum refining | 5.6 |
| Transport, storage, and communication | 4.9 |
| Agriculture, forestry, and fishing | 2.8 |
| Electricity, Gas, and Water | 2.1 |
What is The Economic Potential of FIFA 2034 For the Saudi Economy?
With winning of hosting this gala event, the Saudi government is injecting billions of dollars into its economy for infrastructure projects, roads, transportation, and many more. Investment at a large scale is also focused on Vision 2030, which will showcase the country’s state-of-the-art technology and futuristic cities. For instance, the FIFA World Cup 20234 and Vision 2034 aim to bring 3.8% to 5.7% FDI to the GDP.
The showcase of Vision 2030 along with FIFA 2034, highlights economic diversification from an oil-based economy to non-oil sectors such as tourism, technology, etc. Further, it will increase foreign investment for new industries, help private sectors grow by supporting small and medium enterprises, and encourage entrepreneurship in a dynamic and competitive environment.
Saudi’s FIFA 2034: An Untapped Opportunity for Businesses
Hosting FIFA 2034 significantly helps business with several sectors, some of which are mentioned below –
Renewable Energy –
Saudi Arabia is committed to using renewable energy power for FIFA World Cup events and related infrastructure. This presents opportunities for companies specializing in solar panels, wind turbine installers, and energy storage providers.
- Logistics and Transportation –
To showcase the country’s strength and state-of-the-art infrastructure for transportation, consisting of road, rail, airport, etc, and tourism, present opportunities to logistics companies, transportation providers, and related businesses. - Construction and Urban Planning –
Developing stadiums, Vision 2030, Hotels, tourist spots, etc., will create numerous opportunities for construction companies, engineers, architects, urban planners, and associated businesses that provide raw materials for construction.
Conclusion
Hosting the FIFA World Cup 2034 will directly boost Saudi Arabia’s aim to transform its oil-based economy into non-oil sectors such as technology, tourism, etc. For instance, Saudi Arabia experienced a 378% increase in tourist arrivals in 2022. This will be further amplified by FIFA 2034. It will also showcase Vision 2030, and the potential for developing a futuristic city.
