Saudi Sports Law - A New Era for Sports in the Kingdom

The new KSA Sports Law (the “Sports Law”) came into force this summer, 180 days after its publication.¹ Those subject to the Sports Law must bring themselves into compliance within one year of its entry into force, a period which the Minister of Sport (the “Minister”) may extend by a further year. The Implementing Regulations were due to be issued by the Minister within 180 days from publication of the Sports Law, but are yet to be issued.

The issuance of the Sports Law is timely. It reflects the remarkable on-going sporting transformation of the Kingdom, driven primarily by the Vision 2030 strategy, which positions sport as a central pillar of the nation's economic diversification away from oil. Since 2019, the Kingdom has hosted more than 100 major international events across 40 different sports. These include Formula 1 races in Jeddah, Formula E in Diriyah, the FIFA Club World Cup 2023, the WTA Finals, major boxing bouts, elite tennis competitions, and the inaugural Esports World Cup. The scale of investment has been striking. Between 2021 and 2023, the Kingdom invested more than USD 6 billion in over 900 sponsorship agreements, and the value of the sports sector grew from SAR 8.7 billion in 2022 to SAR 13.8 billion in 2023. The sector is projected to reach USD 22 billion by 2030.² 

This new framework provides a solid foundation for continued growth and is expected to serve as a catalyst for foreign investment. To support this, the Sports Law requires the Ministry of Sport (the “Ministry”) to establish a sector database and make data and statistics available to investors.

Who Does the Sports Law Apply to?

The Sports Law recognises four types of “Sports Entity”: (1) The Saudi Olympic and Paralympic Committee (the “Committee”); (2) Federations, of which no more than one may be established for each sport; (3) Clubs; and (4) Associations. Each is subject to common requirements, together with requirements specific to its category. 

Interestingly, the Sports Law imposes a single obligation on media outlets that broadcast or publish sports content, and on individuals engaged in sports media: to contribute to promoting a culture of sportsmanship and to refrain from anything that may incite hatred, racism or sports-related intolerance.

Whilst the definition of “Sports”³ does not expressly reference esports, it is potentially broad enough to capture them. Esports in the Kingdom are already governed by a standalone regulatory framework administered by the Saudi Esports Federation. 

The Sports Law also allows a “Specialised Federation” to be established for a non-sport activity related to sport, in coordination with the competent government authorities.

Establishment and Governance

Critically, the incorporation of any Sports Entity (other than the Committee) requires an application from the Ministry. A Sports Entity only acquires legal personality upon its registration in the National Register for Sports (the “Register”), whose contents will be available for public access. Each Sports Entity must have various governance organs, each with specific responsibilities: 

• General Assembly;
• Board of Directors; and
• Secretariat or Executive Management.

Board members, the Secretary-General and the Chief Executive Officer may be held personally liable to the Sports Entity for their own violations, faults, negligence and misconduct, and board members’ liability is joint. A board member may avoid liability only by expressly objecting to, or recording a reservation against, the relevant decision.

Clubs and Associations as Companies

The Sports Law permits Clubs and Associations to incorporate as companies, subject to certain conditions, including:

• the Minister’s prior approval, which is also required before an existing company may carry on any sports activity;
• registration with the Ministry, and in the Register, within 60 days of incorporation or approval;
• minimum capital requirements, to be specified in the Implementing Regulations, which cannot be lower than the minimum under the Saudi Arabia Companies Law⁴; and
• compliance with foreign ownership restrictions, under which the share of any foreign partner or shareholder may not exceed a percentage set by the Minister. This will be critical for potential foreign investors and should be monitored closely. Where deals are under negotiation, parties will need to consider carefully how any future cap would be addressed through restructuring.

The Ministry will also coordinate with the Ministry of Commerce and the Ministry of Investment to establish approval requirements for mergers, acquisitions and the disposal of ownership in such companies.

For existing Clubs and Associations currently constituted as non-profit entities, the Sports Law establishes a conversion mechanism. Names, logos, assets, contracts, rights and obligations transfer to the new company, which assumes the pre-conversion obligations. This may be of particular interest to investors looking to explore the commercialisation of existing sporting institutions that currently operate on a not-for-profit basis.

What Else?

The Sports Law also:

• sets requirements in relation to running sports competitions and events,⁵ the licensing and operation of sports facilities, and the licensing of centres, institutes, academies and schools, together with requirements in relation to coaching and education;
• establishes a framework governing individuals active in the sports sector, including players, coaches, referees, elite athletes and sports agents;
• sets out the financial resources available to Sports Entities, including membership and licensing fees, revenues from their activities and programmes, investment returns and the exploitation of intellectual property rights;
• allows the Ministry to set conditions for Sports Entities to receive Ministry funding, and to monitor how that funding is used;
• reiterates the role of the Saudi Sport Arbitration Centre, which is tasked with overseeing arbitration and alternative dispute resolution in relation to sports disputes. Sports Entities and related parties (such as directors and members) are expressly given the option to resort to arbitration to settle disputes;
• gives Federations the ability to exercise disciplinary powers over its members, affiliates, licensees; and registrants;
• places anti-doping on a statutory footing through the independent Saudi-Arabian Anti-Doping Committee (whose existence pre-dated the Sports Law), which may regulate, test, investigate and sanction violations; relevant sports participants must cooperate.
• protects the Committee’s name, flag and logos, and Olympic and Paralympic marks, from use without the Committee’s approval;
• requires the provision of support for persons with disabilities, including accessible sports facilities; and
• allows the Ministry to reward whistleblowers, to delegate inspection tasks to private bodies, and to issue template Articles of Association and contracts for the sector.

Violations and Penalties

The Sports Law sets out an extensive catalogue of violations and the penalties regime is robust. Available penalties include (without limitation):

• fines of up to SAR 5,000,000;
• licence suspension and / or cancellation; and
• temporary or permanent closure of facilities.  

The Ministry may impose fines of up to SAR 50,000 directly, with other violations referred to a Consideration Committee. Penalties are doubled for a repeat violation within two years.

What Next?

Whilst much of the detail remains subject to the Sports Law Implementing Regulations, clients operating in, or with interests in, the KSA sports sector should consider the following:

• Assess Compliance: Existing Sports Entities and individuals should conduct a thorough review of their current structures, licences, and activities against the requirements of the Sports Law.
• Counterparty Diligence: Check a Sports Entity counterparty’s Register status before funding, sponsoring or partnering with it.
• Foreign Investment: Prospective foreign investors should monitor the forthcoming foreign ownership cap and the M&A approval requirements, and assess any implications for planned or existing investments.
• Licensing: Operators of sports facilities, academies, training centres, and event management businesses should verify that they hold (or apply for) all required Ministry licences.
• Governance: Sports Entities should review their governance structures to ensure compliance with the requirements for general assemblies, boards of directors, and executive management, including the board liability provisions.
• Dispute Resolution: Sports Entities should review their Articles of Association for arbitration clauses and consider the implications of the Saudi Sport Arbitration Centre as a dispute resolution strategy.

If you are a business operating in, or considering investment in, the KSA sports sector, feel free to reach out to our team (Jamie Ryder, Mohammed Basama, Alex Mackay and Norah Alqasem) who can help guide you further. 

1. The Sports Law was approved in draft by Cabinet Decision No. 414/1447 dated 04/06/1447H (25 November 2025), issued pursuant to Royal Decree No. (M/121) dated 10/06/1447H (1 December 2025), and published in the Umm Al-Qura Gazette on 21/06/1447H (12 December 2025). It came into force on 10 June 2026. The Sports Law abrogates the prior Statute of the Sports Federations and the Saudi Arabian Olympic Committee (Royal Decree No. M55/1407 dated 19/10/1407 H) and all provisions that conflict with the new law.
2. https://www.vision2030.gov.sa/en/media/articles/saudi-arabia-s-sports-evolution
3. “Sports” is defined as: “An activity whose practice depends on physical performance or intellectual skill, or both, and which aims to enhance physical fitness or mental capabilities, or to achieve results within the framework of a Sports Competition, or all thereof. Such activity shall be governed by rules or patterns regulating its practice, training, or officiating, and shall be recognised or commonly accepted as a sports activity, whether practised individually or collectively, competitively or non-competitively, and whether on a professional or amateur basis.”
4. Royal Decree No. M/132 dated 1/12/1443 AH / 2022
5. There may be some overlap with the recently issued Saudi Arabia Cabinet Decision No. 18/1448 On the Approval of the Law on Entertainment Activities and Their Supporting Activities.