Feasibility Study for Saudi Arabia's Gym Landscape

Health and fitness market in Saudi Arabia is undergoing exponential growth, transforming into a key pillar of the nation's future. The market is projected to develop from its predicted USD 1.14 billion in 2024 to between USD 1.79 billion and USD 2.67 billion by 2030, with a robust compound annual growth rate (CAGR) of 8–10%. This expansion is fundamentally powered by the Kingdom's Vision 2030, which aims to increase weekly physical activity. With 48.2% of inhabitants exercising regularly by 2022, the baseline goal of 40% has already been exceeded, indicating a significant transformation in society.

Emerging Market Trends and Growth Drivers
The market's rapid expansion is defined by several interconnected trends. Gyms are implementing hybrid models that combine in-person training with online programs as part of the digital revolution. As 60% of Saudis measure their fitness with wearable technology, this is driven by significant consumer tech adoption.

A major disruptive force is the rise of the low-cost, high-value (LCHV) model. The LCHV segment is expected to increase at an astounding 35–45% CAGR over the next five years, with 51% of non-members citing high cost as the main barrier to admission. This model is expanding the market by attracting a wave of first-time users.   

The most significant growth frontier is women's fitness, backed by state-level investment from the Public Investment Fund (PIF). The popularity of women-only boutique studios has been fuelled by the more than 150% growth in female participation in sports, which has released enormous pent-up demand. Lastly, operators are branching out into comprehensive centers that provide services like dietary counselling and physiotherapy, as well as capitalizing on the growing wellness tourism industry, as the market is shifting towards holistic wellbeing.

Competitive Landscape: A Fragmented and Evolving Field

· The gym industry in Saudi Arabia is a dynamic and dispersed mix of individual studios, international franchises, and major domestic chains. The unorganized sector of freestanding gyms draws more members with lower costs, whereas the organized sector, which is made up of chains, makes the most money. 

· With more than 150 clubs and an estimated 27% of the membership share, Leejam Sports (Fitness Time) is the clear industry leader. Its multi-brand approach, which includes low-cost, women-only, mid-market, and luxury "Xpress" products, is the key to its success. 

· Body Masters, another powerful domestic chain with more than 40 sites, is another important player. There are several international franchises, with high-end names like: Gold's Gym and Fitness First. The market is also being reshaped by LCHV disruptors like the UK's Pure Gym and the UAE's GymNation, which are expanding aggressively with affordable, no-contract models. The innovative boutique segment is led by brands like NuYu Fitness, a premier women-only chain, and ARENA, which specializes in MMA.   

· Other important participants include Body Masters, a powerful domestic chain with more than the market offers a number of attractive investment opportunities in several market categories.

Investment Opportunities in the Segment
The market presents several compelling investment opportunities across distinct segments.

· Low-Cost, High-Value (LCHV) Gyms: Targeting the 51% of non-members who see cost as a barrier, Low-Cost, High-Value (LCHV) gyms have the biggest possibility for market expansion. Building a new domestic brand or franchising an established international one is a solid strategy, with growth of 35–45% per year anticipated.

· Specialized Women-Only Boutiques: A lucrative market niche serving the most active segment of the population. Particularly appealing are ideas centered around Pilates, yoga, and barre, which are supported by PIF.

· Underserved Demographics: There is less competition for "blue ocean" chances in youth and geriatric fitness. There will undoubtedly be a need for specialized, low-impact fitness in the future as the senior population is expected to increase to 25% by 2050.

· Corporate Wellness: This B2B opportunity taps into a USD 757 million industry, partnering with corporations to offer tailored gym memberships and health programs. 

Investors should concentrate on auxiliary revenue, particularly personal training, the sector's fastest-growing stream with a projected 14% CAGR, in order to maximize profitability. To gain entry, one must follow a multi-step licensing procedure that includes the Ministry of Investment (MISA) and the Ministry of Sport, which typically takes 15-20 working days.