Briefing

Saudi Arabia’s new sports law: From fragmented oversight to a codified framework

For most of its modern history, Saudi Arabia regulated organised sport through a diversified frameworks built around the Olympic committee and sports federations, with the absence of a comprehensive statute addressing clubs, investment, contracting and dispute resolution. The Statute of the Sports Federations and the Saudi Arabian Olympic Committee, promulgated by Royal Decree No. M55/1407, supplied the backbone, and much of the commercial and governance detail was left to federation rules and to global practices.

The Saudi Vision 2030 (adopted in 2016), reframed sport as an instrument of economic diversification and international positioning, and the regulatory architecture has now been rebuilt to match that ambition.

The central step in that rebuild is the new Sports Law (the Law), approved by Cabinet Decision No. 414/1447 and promulgated by Royal Decree No. M121/1447 dated 10/06/1447H. It was published in the Official Gazette (Umm Al-Qura), issue 5129 dated 21/06/1447H (December 2025), and under enters into force 180 days after that publication. The Law comprises of 97 articles across 11 titles. It supersedes the M55/1407 statute and abrogates any conflicting provisions (Article 96). Existing entities and individuals have one year from the new Sports Law coming into force to align their position – can be extended by ministerial decision.

The corporatisation of sport

Reform did not begin with the Law. The Private Sector Participation Law (Royal Decree No. M/63 dated 5/8/1442H, corresponding to 18 March 2021) and a broader privatisation agenda set the direction, and in June 2023 the Public Investment Fund (PIF) took majority stakes in four leading Saudi clubs, Al-Ittihad, Al-Nassr, Al-Ahli and Al-Hilal, and with Saudi Aramco acquiring Al-Qadsiah football club, converting them into companies able to operate on commercial terms. In July 2025 the programme reached foreign capital for the first time, when the US-based Harburg Group acquired 100 per cent of Al-Kholood, the first foreign-owned Saudi Pro League club, alongside the transfer of Al-Ansar and Al-Zulfi to Saudi investors. And only recently, the Ministry of Sport announced opening the privatization phase of 5 other clubs (Al-Fateh, Al-Riyadh, Al-Shoulla, Al-Tai, and Abha). There also other plans concerning other clubs in the Kingdom, and form part of the phased approach the Ministry of Sport is rolling out.

The Law gives this trajectory a statutory base. It defines four categories of Sports Entity: the Saudi Olympic and Paralympic Committee, the Federations, the Clubs and the Associations (Article 1, Title 2). A club may take the form of a non-profit sports establishment or of a company incorporated under the Companies Law (Article 18), and Chapter 6 (Articles 34 to 37) governs clubs and associations established as companies. The conversion of an existing club or association into a company requires the Minister’s approval, upon which the names, logos, assets, contracts, rights and obligations transfer to the new company, which assumes the predecessor’s prior obligations (Article 36). For a company-form club or association, the share of any foreign partner or shareholder may not exceed a ceiling set by the Minister, determined in coordination with the Permanent Ministerial Committee for Examining Foreign Investments (Article 37; Cabinet Decision, Clause Third), and capital may not fall below the minimum prescribed by the Companies Law (as applicable).

Incorporation and oversight run through the Ministry of Sport. With the exception of the Saudi Olympic and Paralympic Committee, a Sports Entity acquires legal personality only on the Minister’s approval and registration in the National Register for Sports, and a ministerial decision is issued within sixty days from filing; failing which it is deemed rejected (Articles 24 and 35). The Law also fixes a governance baseline: a general assembly, a board of at least three members meeting at least four times a year, and joint liability of directors and senior officers for damage arising from breaches of the Law, the Regulations or the articles of association (Articles 25, 30 and 31).

The value created over the years, including high-value intellectual property that continues to appreciate, prominent global and local athletes, the hosting and winning of major tournaments, as well as expanding opportunities for advertising and sponsorship, should be systematically structured to preserve and enhance its long-term worth. The recently enacted Law plays a pivotal role in this regard by providing a coherent governance framework that not only recognises but supports the protection, development, and commercialisation of these extremely valuable assets. The investments made by the Saudi government have been both significant and forward-looking, reflecting careful planning, and are now positioned, under this strengthened regulatory foundation, now primed for further ambitious growth and acceleration.

Individuals, discipline and anti-doping

Title 3 codifies the status of those active in the sector. A registered player or coach attains professional status where the activity is carried on regularly under a remunerated contract with a club or federation, and is otherwise treated as an amateur (Articles 41, 42 and 44). Sports agents must hold a federation licence (Article 48), and elite Saudi athletes are entered on a dedicated ministerial list (Articles 46 and 47). Federations retain disciplinary authority over their members, affiliates, licensees and registrants, exercised through their own regulations, with penalties ranging from fines to suspension and cancellation of a licence or registration, imposed without prejudice to any civil or criminal liability (Articles 51 to 55). A separate anti-doping regime operates under the Saudi Arabian Anti-Doping Committee (Title 6).

The governance and considerations embedded in the Law stem from prior ambiguities and regulatory conflicts. The increased activeness of the Ministry of Sport, its Federations, and Associations reflects the seriousness of past efforts, substantial (and gracious) investments in past years, and most notably, the strategic planning driven by Saudi Vision 2030.

Dispute resolution and enforcement

The Law establishes two distinct channels, and they should not be conflated. The first is arbitration before the Saudi Sport Arbitration Centre (SSAC). Sports Entities and their members, licensees, registrants and officers may resort to arbitration, and an arbitration clause set out in an entity’s articles of association or regulations is deemed a written arbitration agreement binding on those parties (Articles 56 and 57). Arbitration is therefore permissive as a matter of statute, yet it becomes effectively compulsory wherever such a clause appears in the governing documents, which is common. Pending the establishment of the SSAC own general assembly, the general assembly of the Saudi Olympic and Paralympic Committee issues the SSAC articles of association and appoints its board. Enforcement of any award engages the Kingdom’s general arbitration regime and, for cross-border recognition, the New York Convention, to which the Kingdom is a party.

The second channel is administrative. Title 10 sets out a catalogue of violations (Article 76), penalties of up to SAR 5 million together with licence and facility sanctions (Articles 77 and 78), and a “Consideration Committee”, chaired by a legally qualified member, to adjudicate violations and hear grievances (Article 86). The Ministry may impose a fine of up to SAR 50,000 directly; any larger fine, or any non-monetary sanction such as licence cancellation or facility closure, must instead be referred to the Consideration Committee, which examines the matter and imposes the appropriate penalty (Articles 77, 78, and 80). A party penalised by the Ministry may file a grievance with the said Committee, and its decision may be challenged before the competent administrative court/the Board of Grievances (Articles 86 and 87).

Historically, the sport industry has faced challenges in identifying the appropriate forum for resolving sports-related contentious matters. While similar issues arise in non-sport disputes, where courts or tribunals may reject jurisdiction, the Law directly addresses this uncertainty by enhancing clarity and awareness in determining the competent judicial authority or tribunal/committee. Although Federations and Associations will continue to play a role at a sub-jurisdictional level, they are now integrated within a broader, unified framework that promotes consistency and accessibility. It also adds clarity to what could be imposed by the Ministry, and therefore being appealed before the Administrative Courts.

Governance autonomy and the wider significance

The concentration of policy and oversight in the Ministry of Sport, the Saudi Olympic and Paralympic Committee, the Public Investment Fund, Saudi Aramco and other investors has accelerated growth, and it sits in some tension with the principle of the autonomy of sport that reinforces the governance models of FIFA and the International Olympic Committee, under which governing bodies are expected to operate at arm’s length from the state. The Kingdom’s model couples sovereign backing with selective integration into international structures. Its scale gives it real influence over how ownership, commercial terms and dispute resolution are shaped beyond its borders, and the contractual sophistication now visible in the Saudi Pro League, including image-rights structures and performance-based incentives, reflects a move from importing foreign templates towards setting domestic ones.

For practitioners, the immediate consequence is practical. Clubs, federations and investors will need to assess their position against the Law before it takes effect, complete applicable registration in the National Register, and align articles of association, governance arrangements and foreign-ownership structures with Chapters 5 and 6. Much detail remains to be settled by the Implementing Regulations, which the Minister issues within 180 days of publication (Article 95), needless to mention the further insight interpreted from the schedule classifying violations and penalties.

The centralisation of laws and regulations provides comfort and certainty to stakeholders when making decisions, particularly those involving long-term planning, future strategy, and substantial investment.

Norah Al-Mousa and Linah Abaalkhail, Trainee Solicitors, assisted in the preparation of this briefing.