Saudi Arabia’s sports investment trigger

Saudi Arabia’s sports sector would have been unthinkable just a few years ago. However, with increased participation comes new opportunities for brands.

Lamya Al-Nahdi, a 29-year-old from Jeddah, made history in 2023 by becoming the first accredited Saudi international basketball referee.

"Five years ago, women in sports was not a common sight, but now things are really different," she tells Jing Daily. "Although it has only been a short period of time, women have managed to accelerate their growth and innovate in the field."

Al-Nahdi exemplifies the changes happening within Saudi Arabia. Besides promoting women's participation in sports, the kingdom has heavily invested in developing its sports infrastructure, hosting major competitions, and even attracting stars like Cristiano Ronaldo.

By 2030, the government aims to increase the number of individuals who exercise at least once a week to 40 percent.

With a growing number of sports practitioners, the country's sportswear and athleisure apparel market is expected to flourish. In 2022, this category generated $1.3 billion (SAR 4.9 billion) in sales and is projected to reach $1.5 billion by 2027. Could Saudi Arabia be the next frontier for sportswear?

Change the game by women

Social media trends, heightened health awareness, overseas education, and government initiatives are the primary drivers behind the sportswear trend in the kingdom, according to Reiting Lee, founder of The Oriental Hybrid, a consulting agency that connects Arabic and Chinese-speaking markets.

The Sports for All Federation (SFA), a non-profit organization that oversees competitive functional fitness in Saudi Arabia, has significantly increased sports participation by establishing nearly 1,000 community sports groups and organizing marathons and tournaments.

Simultaneously, the Ministry of Sports, which sets policies and represents Saudi Arabian sports on the international stage, promotes participation through cash prizes, incubation programs, and social media campaigns.

These initiatives are showing results. According to a 2022 survey conducted by Saudi Arabia’s General Authority of Statistics, 48.2 percent of the population engages in physical and sports activities for at least 30 minutes per week.

“The Saudi Sports Ministry and the Saudi Federations for each sport are doing incredible things to get people, particularly women, enthusiastic about sports through various programs, competitions, courses, teams, and numerous events,” says Yara Alsaleem, a Saudi university student who enjoys yoga and running.

 “They are ensuring that everyone has the resources they need to get involved in sports and have an amazing time! It’s like a fitness revolution.”

Indeed, the inclusion of women is particularly groundbreaking. The government only began licensing women-only gyms in 2017 and lifted the ban on women driving in 2018.

With increasing opportunities for women to participate in sports, there is a growing demand for apparel designed for these activities.

“For Saudi women, the community is very competitive, and they often look at what others are doing on social media. There is a rising number of girls sharing their gym routines and stylish gym outfits (#ootd) with their close friends on Snapchat, Instagram stories, or personal TikTok accounts,” says Lee.

Social media ignites a passion for sportswear

With a remarkable 63 percent of the population under 30, it's no wonder that younger generations are also a significant demographic for sports.

 A study by Astute Analytica reveals that Saudi Arabia's fitness studios and gym market reached a valuation of $968 million in 2023, with individuals aged 18-34 contributing to more than half of the revenue.

Beyond the increasing health awareness, social media significantly influences the promotion of sports and sportswear culture among the youth.

"Influencers, athletes, and fitness enthusiasts on platforms like Instagram and Snapchat have helped make sports and athleisure products popular among younger people, driving demand for these items," says Nahar Almarzougi, founder of Chapter4, a local multi-brand fashion platform that sells international designer brands.

While streetwear and casual wear still dominate Saudi Arabia's everyday fashion landscape, there has been "a gradual shift towards a sporty style due to the influence of social media and the growing recognition of sportswear's versatility," explains Osama Afesh, a Saudi Gen Z model who has collaborated with local athleisure brands.

Adidas Reigns Supreme

When it comes to what young sports enthusiasts are buying, Ahmed Alharbi, the founder of Saudi concept store Crowdless, notes, “This demographic segment [aged 12–30] shows a keen interest in purchasing sports products, particularly soccer-related items such as jerseys and soccer shoes.”

The nation's passion for soccer has given certain brands a significant advantage.

 In 2022, Adidas Group, Nike, and Puma products accounted for over 50 percent of total sales in Saudi Arabia. According to a report by the Saudi Fashion Commission, Adidas led the market, making up 29 percent of Saudi sportswear sales.

“Saudis trust Adidas because it’s German. We all know German products have amazing quality, so their labels are trustworthy—people here just automatically trust [Adidas],” says model Afesh, who walked at Riyadh Fashion Week last year.

“The second factor that boosted its popularity was the collaboration between Kanye and Adidas. When Adidas launched Yeezy, it was extremely popular here, making Saudis want it even more because they want to be seen as the cool kids,” he adds.

Lee from The Oriental Hybrid concurs that Adidas’s success is due to its brand reputation and strategic partnerships. “They choose unique retail locations and collaborate with local talents like Omar Shabra [a Saudi Key Opinion Leader] for appealing localized campaigns,” she says.

Local Brands on the Rise

With the kingdom enhancing its fashion reputation through initiatives like the Saudi 100 Brands incubation program, local sportswear brands are beginning to flourish.

 These brands, equipped with a deep understanding of Saudi culture and consumer preferences, provide a local alternative to established industry giants.

One notable brand is Mazrood. Known primarily for its casual streetwear style, the Riyadh-based label also offers puffer jackets, swim shorts, sweatpants, and joggers.

"We emphasize modesty in our sportswear and athleisure lines, ensuring each piece aligns with the cultural values of our Saudi customers," says Saud Alajaji, owner of Mazrood. "We also incorporate elements that evoke national pride, utilizing color schemes and patterns inspired by local art and architecture."

Other Saudi brands gaining attention include 1886, which recently launched a ski wear collection, and Kayanee, a luxury wellness and fitness sportswear brand backed by the country’s Public Investment Fund.

"As more Saudis prioritize a healthy lifestyle, we are supporting the presence of Saudi sportswear brands so they can expand both domestically and internationally," says Gen Z student Alsaleem.

"We envision our sportswear appealing to a diverse audience, including Saudi expatriates seeking a connection with home and global consumers interested in the rich narrative of Saudi culture and design," Alajaji adds.

Seizing the Moment

While global powerhouses and local brands will present tough competition, Saudi Arabia offers thrilling opportunities for sportswear manufacturers looking to diversify and expand in the Middle East. However, there are key considerations to keep in mind.

“It’s a young population, so affordability is crucial,” says Almarzougi of Chapter4. “Be daring; don’t shy away from introducing bold looks and styles, as there is significant demand.”

Additionally, Crowdless founder Alharbi points out, “While the younger demographics are drawn to trendy and hyped-up items like sneakers, older consumers often prioritize comfort and functionality in their selections.”

As Saudi Arabia enhances its sports initiatives and more citizens get involved, the demand for functional and fashionable apparel will only increase. Brands aiming to succeed in this billion-dollar market should focus on understanding local tastes, leveraging social media, and building relationships with Saudi women and youth.

Source: jingdaily

The opinions shared in the GymNation blog articles are solely those of the respective authors and may not represent the perspectives of GymNation or any member of the GymNation team