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Saudi Arabia's sports sector has undergone a dramatic transformation in recent years, from the Public Investment Fund's landmark acquisition of stakes in four domestic football clubs to the Kingdom's hosting of marquee international events. Yet until now, the regulatory landscape underpinning this growth remained fragmented. Licensing requirements varied across federations, disciplinary mechanisms were inconsistent, and there was no unified framework governing fan and athlete rights. The new Sports Law, approved by the Council of Ministers Decision No. (414) and published in the Official Gazette on 12 December 2025 (taking effect 180 days later), changes that. It establishes a single, comprehensive framework covering governance, licensing, operations, dispute resolution, and enforcement, with penalties reaching five million SAR.
Note: The implementing regulations under the Sports Law have not yet been issued as of the date of this article. Accordingly, certain provisions discussed below remain subject to further detail and clarification once the implementing regulations are published.
Substantive provisions of the law
Governance and licensing
The new Law adopts a unified regulatory licensing pathway, mapping each activity - league administration, event staging, facility operation, academies, and individual roles such as coaches and agents - to the competent authority (the Ministry of Sports, the relevant federation, or its designee). Published templates, defined timelines, and standardised admission requirements (including insurance, safety, and universal-access standards) replace the previous patchwork of federation-level processes. Licenses are recorded in a national register maintained by the Ministry of Sports (see below).
Data and the national register
The Ministry manages a national register of sports entities, facilities, and related programmes, with calibrated public access to data that offers organisers and investors an objective view of the market. The current platform used for sport licensing is Nafes, although the Law makes no mention of whether the Nafes platform will continue to serve this function. Rather, the Law provides that the Ministry of Sport shall establish the register, suggesting that the platform may be subject to change or replacement. This signals the register as the main source of information, as it will provide digital transparency and tracking, with a clear appeal channel.
Allocation of powers
The Law delineates roles to avoid overlaps: the Ministry of Sports sets policy and oversees compliance; the Saudi Olympic and Paralympic Committee handles Olympic/Paralympic competitions and external representation; and federations manage technical and regulatory matters for each sport, with the option to establish league associations to run competitions and market rights.
Conversion to companies and investment
The Law provides an orderly pathway for clubs and league associations to convert to companies or establish subsidiaries. Upon conversion, identity, assets, contracts, and liabilities transfer seamlessly, supported by capital and governance requirements. Foreign ownership caps are determined in coordination with the Permanent Ministerial Committee for Reviewing Foreign Investments. It is worth noting that although Chapter Six of the Law has four articles that govern such establishments, it would be interesting to see the interplay between these provisions and the Saudi Companies Law at a later stage especially when a club or association converts to a company. As the resulting entity would ordinarily be subject to the general corporate governance, capital maintenance, and reporting obligations under the Companies Law.
The new Law does not expressly address the extent to which its bespoke conversion and governance requirements supplement or displace the corresponding provisions of the Companies Law, and this is a point that may warrant further clarification as the implementing regulations are developed.
Individuals in the sports sector
The Law distinguishes between professional players (engaged under paid contracts) and amateurs, and establishes transparent licensing pathways for coaches, referees, and agents. "Elite athletes" lists are adopted under objective performance criteria. The Ministry must also coordinate with the General Organization for Social Insurance (GOSI) and the Insurance Authority to develop appropriate insurance products for players and coaches.
Competitions, events, and facilities
Event organisation rests on prior licensing, with the Law distinguishing between a licence to stage an event and a licence to operate or manage it. Facilities may only be established or modified under licences reflecting classification and safety standards, while official instructions govern ticketing and spectator access.
Discipline, dispute resolution, and anti-doping
The Law empowers federations to investigate and impose sanctions under bylaws guaranteeing due process, with measures ranging from warnings and fines to suspensions and annulment of results. An arbitration clause embedded in statutes and bylaws is deemed a binding written agreement, enabling institutional sports arbitration. Anti-doping efforts are centralised under the Saudi Committee for Doping Control, an independent body authorised to issue rules, conduct testing, and impose sanctions, with strict privacy safeguards on the use of samples and results.
Inspection and sanctions
Ministry inspectors have defined field‑oversight and evidence‑gathering powers. The Review Committee adjudicates violations within published timelines, with judicial recourse available thereafter. Sanctions range from monetary fines to suspension, revocation, and closure, complemented by ancillary measures such as daily accruing fines and publication of decisions.
Notable gaps in the law
The Sports Law does align with international best practices for sports regulation in several respects, including the pyramid structure of sports governance and emphasis on anti-doping through a dedicated national body. However, several areas increasingly addressed in international sports legislation are not explicitly covered:
Match-fixing and sports integrity
The Law does not include specific provisions addressing match-fixing, manipulation of sports results, or coordination with betting regulators, areas that are central to modern sports integrity frameworks such as the Council of Europe's Macolin Convention.
Child and youth athlete safeguarding
While the Law regulates sports academies and schools, it does not contain explicit safeguarding provisions for young athletes, such as mandatory background checks for personnel working with minors, reporting obligations for abuse, or specific welfare protections aligned with International Olympic Committee (IOC) and Fédération Internationale de Football Association (FIFA) safeguarding frameworks.
Esports
Despite Saudi Arabia's significant investments in the gaming sector, the Law does not explicitly address esports. However, a parallel regulatory framework is already taking shape. The Saudi Esports Federation (the "SEF"), established in 2017, has emerged as a key regulator and published a consultation in late 2025 titled "Saudi eLeague Regulation 2026," seeking feedback on a proposed regulation on the National Competitiveness Centre's public consultation platform, "Istitlaa". The proposed regulation discusses governing league registration, gameplay, results calculation, and the rights and obligations of the SEF, clubs, players, and officials. The reference to "2026" in the title suggests that the regulation is currently under development and is expected to be finalised this year. It would be interesting to see how this will interact with the broader sports regulations.
Multi-club ownership
The Law addresses foreign ownership caps but does not contain specific rules on multi-club ownership (MCO) MCO refers to the practice whereby a single investor, entity, or group holds ownership stakes in more than one professional football club, often across different leagues and jurisdictions. This can raise concerns around competitive integrity, conflicts of interest, and market concentration. By way of comparison, the European Union has generally permitted multi-club ownership under its free movement of capital principles, though the Union of European Football Associations (UEFA) has introduced its own MCO rules. Under UEFA's current regulations, no individual or entity may hold a controlling interest in more than one club competing in the same UEFA competition, and clubs under common ownership that qualify for the same tournament may face restrictions or exclusion. The absence of specific MCO provisions in the Saudi Sports Law may be an area for future regulatory development as the Kingdom's football ecosystem continues to attract international investment.
These gaps highlight areas where international sports laws have evolved more comprehensive frameworks. However, they may be addressed through implementing regulations or future amendments as the Kingdom's sports sector matures.
Practical impact on implementation
In practical terms, the Law delivers several key outcomes for stakeholders:
- Clarity for entities and investors: A unified licensing regime, defined timelines, and a national register reduce operational and legal risk, while company conversion pathways and M&A parameters provide commercial certainty.
- Protections for individuals: Clear distinctions between professional and amateur status, standardised licensing for coaches, referees, and agents, and institutionalised elite-athlete pathways bring consistency across the sector.
- Robust enforcement: A graduated sanctions framework, independent inspection powers, and institutional arbitration mechanisms ensure accountability, while statutory deadlines for compliance convert regulatory obligations into measurable plans.
The Ministry is also tasked with preparing a draft regulation governing the contractual relationship between clubs/federations and players/coaches, covering rights and obligations of parties.
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