خبراء ومصرفيون: تطوير قطاع الرياضة خطوة استراتيجية لتعزيز الاقتصاد البحريني

Heba Mohsen

$2.7 billion in revenues from hosting “Formula 1”

Fakih: Strategic partnerships to develop the sports sector in BahrainIndividual: The professionalism law is one of the aspects of investment in the sports sectorHaji: 9.3% increase in sports spending in the Kingdom in 2024Noura Al-Faihani: Bahrain is at the beginning of the path to the sports economy

Analysts, economic experts and bankers confirmed that investing in the sports sector in Bahrain is a strategic step towards strengthening the local economy, before explaining that it has shown tangible growth with an increase in spending by 9.3% in 2024, in addition to achieving a 100% return on an investment of $2.7 billion. To host Formula 1 races from the start of hosting races in 2004 until 2022. They added to Al-Watan that the revenues generated The sports and sports supplies market in Bahrain is estimated at approximately $34.43 million in the year 2024, with an expected growth rate of 4.1% in 2025. Experts stressed that developing the sports sector in Bahrain represents a strategic step to achieve sustainable development by investing resources effectively. And encouraging partnerships between the public and private sectors in investing in the sports sector. They pointed out that investment in the sports sector is being achieved on the ground now through a package of advanced sports legislation that has entered into force. After the legislative authority made a great effort in cooperation with the executive authority, which made the Kingdom keep pace with the global developments and changes taking place in this sector, the most recent of which was the issuance of the Sports Professionalism Law, which represents one of the aspects of investment in the sector. With increasing expectations for the growth of the global sports market, it is clear that sports It is not just a recreational activity, but rather a vital economic sector that contributes to economic growth and affects multiple areas. Therefore, experts stressed that governments, companies, and investors must exploit these opportunities to enhance financial returns, and invest in infrastructure and innovations in this vital field.

Growing interest from the leadership. The head of the Shura Council’s Youth Affairs Committee, Redha Monfardi, said that Bahrain bases all its national work processes on strategies and action plans, whether at the level of the legislative authority or the executive authority, so that each of these two authorities assumes the role assigned to it constitutionally, and in a way that achieves response to the goals. The joint strategy for Bahrain’s economic and development vision, so that everyone works, each according to his specialty and field, to present all initiatives and bids that push towards the development of any sector, and one of the most important sectors that receives growing attention From the wise leadership, as well as from the legislative and executive authorities, is the sports sector, and thus we sense the extent of development and progress that is evident in the performance of Bahraini sports and its regional and international participation, as well as the levels, efficiency and readiness of athletes. Regarding the issue of investment in the sports sector, Munfaridi explained, who combines practical experience in The field of banking and investment, and field and practical experience in the sports field, is divided into several aspects, including: Investing in the athletes themselves, investing in developing sports facilities, developing the system of national sports legislation, and hosting sporting events, tournaments and competitions. Investing in athletes He stressed that investing in athletes is achieved through high-level support, assistance and empowerment from the wise leadership, as well as personally from His Highness Sheikh Nasser bin Hamad Al Khalifa, Representative of His Majesty the King for Humanitarian Work and Youth Affairs, Chairman of the Supreme Council for Youth and Sports, and His Highness Sheikh Khalid bin Hamad Al Khalifa, First Deputy Chairman of the Supreme Council for Youth and Sports, Chairman of the General Authority. For Sports, Chairman of the Bahrain Olympic Committee. Developing sports facilities. Munfaridi pointed to the investment made in developing sports facilities in the Kingdom of Bahrain, which made them capable of attracting sports of all kinds, qualifying athletes, creating new youth and youth, and serving as continuous engines for sports from which sports booms are evident. Professionalism. Developing national legislation. He said that there is another type of investment in the sports sector, which is through developing the system of national sports legislation, which is being achieved on the ground now by Through a package of advanced sports legislation that came into effect after the legislative authority made a great effort in cooperation with the executive authority, which brought the Kingdom to keep pace with the global developments and changes taking place in this sector, the most recent of which was the issuance of the Sports Professionalism Law, which represents one of the aspects of investment in this sector. Organizing sports events and tournaments. Munfardi added that there is another aspect of investment in the sports sector that directly contributes to the development of the national economy, and this is an issue that the official institutions concerned with sports affairs in the Kingdom of Bahrain have not overlooked, as they have organized many, many events. And sports tournaments and competitions in various fields, and attracted participants and competitors from various countries of the world, such as organizing the Kingdom of Bahrain International Cup for horse racing, endurance races, the World Weightlifting Championship, and folklore competitions, a large part of which is involved in sports. Munfadi concluded in his speech that: Sports are individual capabilities, competencies, and energies, and in order for investment with economic returns to be achieved in it, investment must be directed primarily in individuals and sports facilities, as we are witnessing now, and this is accompanied by legislative development. Legal and high-level executive work. This is what distinguishes the policy and direction of the leaders of the sports movement in the Kingdom, that sports development and investment should be based on legal regulation first, and on national talents and competencies, in order to achieve optimal investment in this sector. Sustainable Investment For his part, banking expert Ali Fakih stressed that developing the sports sector in The Kingdom of Bahrain is considered a sustainable investment, as the Kingdom of Bahrain is witnessing ambitious plans to develop the sports sector through strategic partnerships. A comprehensive sports infrastructure project has been announced that includes the construction of football stadiums and athletics tracks with international standards. This project was revealed for the first time in 2021, as the government made remarkable progress by allocating budgets and updating designs, including road works leading to the Sports City. Fakih added that the esteemed government allocated a budget of 48.7 million dinars for the project for the year 2023, with An additional budget of 52.1 million dinars for the year 2024. The project focuses on creating a modern sports stadium that can accommodate 50,000 people, in addition to… A multi-purpose hall that can accommodate 10,000 people. The Sports City will also include a commercial complex and hotels, making it a distinctive destination for sports fans and visitors alike. Sports City Faqih pointed out that the Sports City will be located near the Bahrain International Circuit and Exhibition World Bahrain, which is considered one of the largest international exhibitions in the Middle East. These initiatives enhance Bahrain’s image as a regional sports center, as they will contribute to attracting major sporting events, which increases the level of tourism and strengthens the national economy. He stressed the importance of investing in sports, as it contributes to economic growth, stimulates job creation, and raises tourism levels by organizing Sports competitions and events. In addition, investing in sports enhances public health and social cohesion, and provides opportunities to enable young people to participate in sports and social activities. Partnerships between the sectors. Fakih stressed the importance of concluding partnerships between the public and private sectors, saying: “It is important to encourage partnerships between the public and private sectors in investing in The sports sector, as these partnerships allow us to benefit from the expertise and financing of companies, ensuring sustainable and innovative growth. There are many types of partnership contracts that the government can use to encourage private investments in the sports sector, which contributes to accelerating the implementation of sports projects. He explained that sometimes, government budgets for investment in the sports sector may not be sufficient, or it may take years to complete. Therefore, partnerships between the public and private sectors contribute to accelerating the process of completing such vital projects. Technical innovations While the President of the Artificial Intelligence Association, Dr. Jassim Haji said that the sports sector in the Middle East region is witnessing a remarkable transformation with the increase in large investments and the adoption of advanced technology, especially artificial intelligence, which has become a major factor in driving growth and development in this sector, as attention is turning to how to benefit from technical innovations to enhance sports as a vital economic sector. The integration of artificial intelligence represents a major turning point for the sector. An advanced regional sports center. Haji stated that the sports sector in the Kingdom of Bahrain has shown tangible growth with an increase in spending by 9.3% in 2024, in addition to achieving A 100% return on an investment of $2.7 billion to host Formula 1 races since the start of hosting races in 2004 until 2022. Revenues generated from the sports and sports supplies market in Bahrain were estimated at $34.43 million for the year 2024, with an expected growth rate of 4.1 % in 2025. He added that partnerships between the public and private sectors enable Bahrain to achieve its ambitions in To become an advanced regional sports hub. Artificial Intelligence On the growth of the artificial intelligence market in sports, Haji explained that, according to estimates, the value of the artificial intelligence market in sports globally is expected to reach $19.2 billion by 2030. Artificial intelligence is expected to achieve economic gains in The Gulf Cooperation Council countries reached $8.5 billion in the sports sector during the same period. Haji touched on the Kingdom of Saudi Arabia’s interest in the sector, saying: “The Saudi sports sector currently represents no less than 1% of the Kingdom’s GDP, which highlights its increasing impact on the national economy. With continued expansion and increasing investments, this number is expected to rise to 1.5%, equivalent to 16.5 billion Saudi riyals annually. This growth is considered part of the economic transformation strategy adopted by the Kingdom to enhance economic diversification away from traditional dependence on oil.” Attracting large investments Haji added: “The size of the sports sector in Saudi Arabia is expected to reach about 84 billion Saudi riyals ($2.4 billion) by the year 2030, which highlights the importance of sports as a fundamental pillar in achieving the Kingdom’s Vision 2030, in addition to the fact that the Kingdom of Saudi Arabia is preparing to develop a huge sports complex worth $3.3 billion through a partnership between “Alpha Jusoor” Investments and Blockchain Sports Ecosystem, a UK-based technology company. This project aims to create one of the largest innovative sports centers in the Middle East and North Africa region, where advanced technology solutions will be integrated to attract large investments and enhance the sports and entertainment sectors. Growth of the sports sector in the region Haji said: “Sports development is not limited to Saudi Arabia only, but extends to all parts of the world.” The Middle East region, where the World Economic Forum reported that the sports sector in the region is expected to grow by 8.7% by 2026, outperforming the global growth rate of 3.3% for the same period. He stated that the United Arab Emirates It shines as one of the world’s leading countries in the field of sports enthusiasm, as statistics indicate that 89% of consumers in the UAE actively participate in sports media. This high demand is attributed to government support and the advanced technological environment that enhances the fans’ experience. E-Sports Haji explained that expectations indicate significant growth in average revenue per user in the e-Sports sector by 2029, as the UAE is expected to lead in this field, with The average revenue per user in the e-sports market reached $9.93, while Egypt comes in next place with an average revenue of $0.85, which reflects a significant difference in the level of digital maturity and technical infrastructure. Science For her part, banking expert Noura Al-Faihani confirmed that sports economics has today become an integrated science taught in universities and relied upon by specialized experts and consultants, which reflects the importance of this growing sector in the world. Today, the player or sports team is considered a profit-making institution that needs to effectively manage its resources and exploit investment opportunities to achieve the highest returns. Combining economic and sports expertise. Al-Faihani said: “The advancement of the sports sector in the Kingdom of Bahrain requires the adoption of advanced economic concepts, and this requires the presence of specialists who combine economic expertise.” And sports. Although Bahrain may be at the beginning of this path, it has the ability to carve out its share of the global sports economy, which is witnessing continuous expansion. She explained that the areas of the sports economy include many aspects, including: media sponsorship, advertising and publicity: which is considered The media is an essential part of marketing athletes and teams, noting that the industry depends on the brands of players or clubs, as the demand for products associated with sports stars is increasing. Exploiting major sporting events Al-Faihani stressed the importance of exploiting major sporting events. To promote products and services, as the presence of a large audience at sporting events attracts investors who see this as a commercial opportunity, as the presence of crowds of fans and fans in a specific location constitutes an investment opportunity that allows investors to present and promote their products in a lively environment. She added: “His Highness Sheikh Nasser has set Bin Hamad Al Khalifa, Representative of His Majesty the King for Humanitarian Work and Youth Affairs, Chairman of the Supreme Council for Youth and Sports, and His Highness Sheikh Khalid bin Hamad Al Khalifa, First Deputy Chairman of the Supreme Council for Youth and Sports, President of the General Sports Authority, President of the Olympic Committee Bahraini, the Kingdom is at the beginning of the path of the sports economy, but there is still a need to understand the requirements of this sector, and translate them into sustainable returns that positively affect the national income.” She indicated that the sports economy in Bahrain today requires focus and building clear strategies that make it part of the non-oil national income resources. To achieve this, it is necessary to create a qualified national human base that combines sports and economic knowledge, which enhances the ability to develop this sector sustainably.