Saudi Arabia’s New Sports Law: Key Reforms and Practical Implications

The new Sports Law (Royal Decree No. M/121 dated 10/06/1447H) came into force on 11 June 2026. It replaces the previous Basic Law of Sports Federations and the Saudi Arabian Olympic Committee. The Implementing Regulations have not yet been issued.

Against the backdrop of Vision 2030, the Law marks a significant step in the development of Saudi Arabia’s sports sector. It modernises the governance of sporting entities, opens the door to private and corporate investment and introduces a structured regime for licensing, discipline, dispute resolution and enforcement.

Scope of the Law

The Law applies broadly to "sports entities", a defined term that captures the Saudi Olympic and Paralympic Committee, sports federations, clubs and leagues. It also includes sporting facilities, centres, institutes, academies and schools, and extends to natural persons in the sector – players, coaches, referees, administrators, sports agents and media personnel.

The Law defines sport broadly to cover any activity involving physical performance, mental skill, or both, provided that it is governed by recognised rules relating to its practice, training, or officiating. The activity can be undertaken individually or collectively, competitively or recreationally, or on a professional or amateur basis.

Key Reforms 

        Governance of Sporting Entities

The Law establishes a framework for the organisation and governance of sporting entities in the Kingdom, distinguishing between the various types of entities and setting out the rules applicable to each:

• The Saudi Olympic and Paralympic Committee is recognised as the non-government body responsible for the Olympic and Paralympic movement in the Kingdom.
• Federations are designated as the non-governmental bodies responsible for the regulation and development of their respective sports. Only one federation may be established for each sport.
• Clubs and leagues may be constituted either as non-profit sporting institutions or as commercial companies.

The Law also introduces governance requirements for sporting entities that are not established as companies. Such entities must have a general assembly, a board of directors and an executive management function or general secretariat. The Law further prescribes the minimum contents of their articles of association the composition and operation of their boards of directors and the conduct of general assembly meetings, which must be held at least once every financial year. 

A non-profit club or league may also convert into a company by resolution of its general assembly and with the Minister’s approval. Upon conversion, the club’s or league’s name, logos, assets, contracts, rights and obligations transfer to the new company, which assumes existing liabilities. The original, non-profit sporting entity then ceases to exist.

        Director and Senior Management Liability

Board members, together with the secretary-general or chief executive officer, may be liable to compensate a sporting entity for losses caused by breaches of the Law, the Implementing Regulation or the entity’s articles of association, or by error, negligence or default in performing their duties. Where more than one board member is responsible, liability may be joint.

The Law also provides that a board member or senior officer may avoid liability if they can show that they expressly objected to, or recorded a reservation against, the relevant decision or act.

        Dispute Resolution and the SSAC

The Law permits sports entities, their members, licensees, registrants, board members and senior officers to resort to arbitration to resolve disputes. An arbitration clause in a sports entity’s articles of association or regulations is deemed to be a written arbitration agreement capable of binding the sports entity, its members, licensees, registrants, board members and its secretary-general or chief executive officer, as applicable. The Law designates the Saudi Sports Arbitration Centre (the SSAC) as the appropriate institution for resolving sports disputes. 

With regard to administrative violations, the Ministry has created a separate committee of inquiry within the Ministry of Sport which assesses violations of the Law, its Implementing Regulations, or any procedural requirements. This committee can impose penalties and hear grievances against certain penalties imposed directly by the Ministry.

        Disciplinary and Supervisory powers granted to Federations

Federations are given disciplinary powers over their members, affiliates, licensees and registrants. They can conduct investigations and impose sanctions including fines, exclusion or suspension from competitions, bans from entering sports facilities during federation activities, cancellation of results, withdrawal of prizes or titles, and cancellation or suspension of licences or registrations. Federations may also impose any disciplinary sanction permitted under the statutes of relevant international federations.

Practical considerations

The Law creates a structured framework for Saudi sport and creates opportunities for investment, commercialisation and private sector participation. If you operate, invest in, finance or contract with a sports entity in the Kingdom, you should consider reviewing its legal form and governance documents to ensure alignment with the new requirements introduced by the Law. 

Directors, board members and senior management should pay particular attention to their decision-making processes, record-keeping and internal approvals, given the new liability framework.

As the Implementing Regulations are still pending, organisations should continue to monitor further regulatory developments and be prepared to update their governance, compliance and contractual arrangements once they are issued.