World Cup 2034 impact to extend for years, boost non-oil growth: Experts

Economists lauded Saudi Arabia’s victory of the 2034 FIFA World Cup hosting rights as a milestone that highlights its global standing and embodies its ambitious vision. The impact of the world's largest sports event is poised to boost the Kingdom’s economic and tourism growth long before and after the tournament.

Experts told Argaam that hosting the World Cup 2034 marks a strong push to achieve the goals of Vision 2030 by diversifying the economy and enhancing Saudi Arabia’s global profile as a sports and tourism hub. This opportunity is set to attract massive investments, foreign capital, and growth in key sectors like tourism, transportation, and hospitality.

FIFA confirmed Saudi Arabia as the host after Wednesday's Congress meeting, where the Kingdom, the sole candidate, secured the expanded 48-team tournament. Matches will take place across five Saudi cities, marking the first single-nation hosting at this wide scale.

Boosting non-oil growth

Ahmed Alshehri , economic policy expert

Economic policy expert Ahmed Alshehri said the World Cup 2034 will drive significant growth to the Saudi non-oil economy. Investments in infrastructure, including transport, hotels, and public facilities, are expected to deliver lasting quality-of-life improvements.

Alshehri anticipated strong growth in the local hospitality sector, driven by an influx of visitors to serviced apartments and tourist lodgings across the Kingdom. This shall in turn boost revenues, fuel economic diversification, open new investment horizons, and boost real estate asset values.

The event is also bound to create new jobs and enhance workforce skills, hence solidifying Saudi Arabia’s position as a global tourism and investment hub.

Bandar Al-Jaid, academic and economic writer

Academic and economic writer Bandar Al-Jaid highlighted the World Cup’s alignment with the Saudi Vision 2030 goals. He projects the tournament to contribute to a notable uptick in the Kingdom’s non-oil GDP, thanks to investment and consumer spending exceeding 10% in 2034, especially in tourism, entertainment, and hospitality.

Al-Jaid identified the tourism, real estate, and technology sectors as key beneficiaries of Saudi Arabia’s hosting of the forthcoming World Cup, demonstrating greater growth among others, being in line with the Kingdom's medium-term spending plans. He expects millions of visitors to spend billions of dollars before and during the event, boding well for the local tourism sector.

He also predicts heightened demand for residential, hotel, and commercial properties in host cities. The event will further spur innovation in smart solutions and digital services, amplifying its economic impact across sectors.

Real estate and infrastructure boom

Al-Jaid forecasts “significant” real estate growth in host cities, with Riyadh’s housing units potentially increasing 502%. Further, NEOM and Abha are slated to see spikes of up to 2,274%, therefore underscoring the global tournament’s role in reshaping the Saudi real estate market.

Additionally, over 230,000 hotel units are planned for tournament, making Saudi Arabia the most equipped destination in the World Cup history. The Kingdom’s GDP could grow 1-2% during 2034, with potential for higher gains thanks to its economic capacity and sector diversification.

Investing in infrastructure projects, including stadiums and smart cities like NEOM, shall also drive sustainable growth. These initiatives are seen to improve the citizens’ quality of life, attract foreign direct investments, create 150,000–200,000 long-term jobs during preparation, and leave long-term economic and social benefits.

The new facilities will also be used for sports and tourism purposes after the tournament, which enhances the sustainability of their economic returns, according to Al-Jaid.

The expert also stated that the World Cup 2034 bodes well for strengthening investment for local and foreign companies in the local tourism, sports and entertainment sectors, especially in megaprojects such as Qiddiya, Diriyah and The Red Sea.

He expects the private sector to participate in projects worth more than $50 billion as part of the tournament's hosting, including logistics, hotels and transportation.

Iyas Al-Baroud, economist

In the same vein, economist Iyas Al-Baroud highlighted the tournament’s potential to enhance infrastructure, drive private-sector growth, and support small and medium-sized enterprises (SMEs).

Increased government spending and job creation will benefit the tourism, hospitality, and transport sectors, while attracting global investments and curbing unemployment, according to Al-Baroud.

Long-term legacy

Al-Baroud emphasized Vision 2030’s focus on sports to fuel economic growth and boost spending. The national strategy entails 230,000 new hotel rooms across Riyadh, Jeddah, Al Khobar, Abha, and NEOM, which shall in turn strengthen Saudi Arabia’s capacity to host global visitors.

The World Cup 2034 is seen to drive urban development, upgrade transportation, and improve quality of life in host cities. These enhancements will create a sustainable legacy, hence solidifying the Kingdom’s global competitiveness in tourism and investment.