Sport Clubs plans to list next year, seeks increase in market share: CEO

Wael El Merhabi, CEO of Sport Clubs Co.

Sport Clubs Co. plans to go public in early 2024 after obtaining the Saudi Exchange’s (Tadawul) approval, CEO Wael El Merhabi told Argaam.  

The company is completing the necessary procedures with the Capital Market Authority (CMA) to receive the final approval, he added.  

The company operates 54 clubs in 17 Saudi cities, serving more than 120,000 active members. The network, spanning 150,000 square meters, includes 40 and 14 clubs for men and women, respectively, in addition to five other under-construction clubs.   

The sports clubs' sector has experienced rapid expansion, buoyed by the recognition of sports as an integral part of a healthy lifestyle and economic boom across the Kingdom. This, in turn, attracted big international players to venture into the Saudi market, spurring a fierce but competitive environment for high-quality services.    

El Merhabi indicated that Saudi Arabia still has a low number of sports club memberships compared to Europe and other Western countries, expecting the industry to continue growth in line with Vision 2030 and its support of the sports industry.  

Sport Clubs is considered the Kingdom’s second largest chain of sport centers and is amongst the region’s leading sports companies. The firm seeks to increase its market share via continuous expansions, while increasing the number of branches and members. 

“We currently have no accurate figures or statistics of the market shares in the sport clubs segment. The market is still highly fragmented and no player solely owns a majority stake,” El Merhabi noted.  

He stated that the company has a promising expansion plan to increase the branch number of men's Body Masters, women’s Body Motions, in addition to boosting the presence of Body Experts. 

The company also seeks to expand its foothold outside the Kingdom and launch many initiatives within and outside its branch network. 

Sport Clubs also signed and implemented several medium- and large-sized projects with private and government agencies in Riyadh, and initiated negotiations with a number of major companies and government agencies to undertake mega sports projects in several cities across the Kingdom. 

It recently invested in the digital transformation project, which will be launched soon. The project will contribute to accelerating the growth plan and improving the quality of the services provided. 

Incepted in 1992, Sport Clubs operates and manages the sport centres in the Kingdom. It commenced operations with Body Masters for men. In 2020, the company expanded its business portfolio to include women's sports centers under the name BodyMotions. 

It launched Body Experts in 2021 to provide comprehensive services to the government and private sectors. In addition, the company offers comprehensive services, including consulting, sport centers’ design and construction, sale of sports devices and supplies, and the operation of sport facilities.