The recent announcement that the 2034 FIFA World Cup will be taking place in Saudi Arabia will already have savvy investors preparing how to capitalise on the news. With millions of spectators expected to attend the global sporting event, the growing tourism industry and increased demand for accommodation will create the ideal foundation for property owners to reap significant financial rewards in the short-term rental space.
The potential for growth for domestic tourism alone within Saudi Arabia is enormous, and when you factor in international tourism, this opens up exciting investment opportunities in the country for short-term rental owners.
The potential benefits for property owners in the short-term rental space in Saudi Arabia are not only limited to the period around the World Cup. The knock-on impact of the Kingdom hosting the tournament will mean the development of new tourist hubs and areas of interest. Saudi Arabia will see a substantial increase in investment in local infrastructure.
Qatar’s World Cup legacy
Looking at the 2022 FIFA World Cup that was held in Qatar, entire public transport systems were put in place to accommodate the large number of visitors expected during the tournament. A new Doha Metro was launched, connecting stadiums with major hotspots in the city with easy access for tourists. Today, the public transport system is used by residents and tourists alike as an affordable way to navigate Doha.
Winning a global tournament of this nature has the potential to revitalise and transform entire regions of a country. Breathing new life into areas, these neighbourhoods will reap the benefits of this investment long after the tournament is over. The long-term growth potential is huge.
Again, looking at the recent event in Doha, entire hospitality districts were set up with world-class dining and entertainment offerings that are now permanent fixtures in the country’s entertainment landscape. A strategic and savvy investor interested in Saudi Arabia will recognise that the event will serve as a catalyst for change and development and lean into the potential revenue there is to be made.
Another direct consequence of winning the FIFA World Cup will be the uptick in international and regional large-scale events taking place. Saudi Arabia already has a thriving events calendar packed with internationally renowned sporting tournaments, music concerts, fashion, entertainment and cultural events. There is a huge opportunity for short-term rentals here as visitors flock to the country to attend concerts and shows for a long weekend etc. We see this frequently in our current portfolio, with surges in bookings and enquiries around large event dates.
In Saudi Arabia, MDLBEAST, WWE, Red Sea International Film Festival, Saudi Arabian Grand Prix, and Riyadh Season have all attracted domestic and international visitors to attend in recent years. The FIFA World Cup will cement Saudi Arabia as a buzzing event destination.
These events have all been a part of the government’s strategic Vision 2030 plan which aims to diversify tourism offerings, develop a robust tourism infrastructure, attract foreign investment and promote the country’s rich cultural heritage. The FIFA World Cup will bolster Vision 2030’s tourism ambitions, providing a stage on which to showcase the country’s varied offerings and an audience willing to find out more about the country.
Vision 2030 has already accelerated the country’s short-term rental market into rapid growth and the announcement of the tournament win will act as a super catalyst for the market. In time, we will see a significant increase in the number of properties being developed and more property owners converting their investments into short-term rentals. This is an exciting time for the Kingdom and we look forward to helping investors capitalise on the many opportunities presented by this thriving market.
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