Measuring the Value of Electric Racing
Formula E’s seven-season presence in Saudi Arabia — spanning the Diriyah E-Prix from 2018 through 2024 and the Jeddah ePrix from 2025 onward — represents one of the most sustained investments in electric motorsport hosting by any nation. While the Saudi Motorsport Company has never publicly disclosed comprehensive financial data for its Formula E hosting operations, the economic impact can be assessed through a combination of available data points, comparative analysis with other hosting arrangements, and an examination of the multiple value channels through which a motorsport event generates returns for its host nation.
The economic impact of hosting Formula E extends well beyond the direct revenues from ticket sales and event-day spending. It encompasses media exposure worth hundreds of millions of dollars, tourism development through international visibility, infrastructure investment that serves the host city beyond race weekends, workforce development in event management and motorsport operations, commercial partnership activation by national and international brands, and soft power projection that positions Saudi Arabia as a forward-thinking participant in the global energy transition.
Saudi Arabia’s total motorsport investment portfolio — conservatively estimated at $2.5 billion or more in direct infrastructure and hosting fees across Formula 1, Formula E, the Dakar Rally, Extreme E, and associated facilities — positions Formula E within a broader economic strategy rather than as an isolated expenditure. The returns on Formula E hosting must therefore be evaluated not only in terms of direct financial metrics but also in terms of its contribution to the comprehensive motorsport ecosystem that Saudi Arabia has constructed as a component of Vision 2030.
Hosting Fees and Direct Investment
Formula E hosting fees are structured differently from Formula 1’s well-documented annual payments. While the Saudi Arabian Grand Prix carries a reported hosting fee of $55-60 million per year with approximately 5 percent annual escalation, Formula E’s hosting arrangements involve lower base fees but similar contractual commitments regarding infrastructure standards, event execution, and commercial obligations.
The direct investment in Formula E hosting at Diriyah included the construction and annual reconfiguration of the temporary Riyadh Street Circuit, installation of timing, safety, and broadcast infrastructure to FIA standards, installation of the floodlighting system for night racing from Season 7 onward, construction and operation of fan villages, hospitality facilities, and grandstand seating, and the logistical costs of staging double-header weekends including travel, accommodation, and personnel for the entire Formula E paddock.
The move to the Jeddah Corniche Circuit for Season 11 transformed the investment profile significantly. The Jeddah circuit’s permanent infrastructure — including a $500 million pit building, permanent grandstands for 70,000 spectators, over 2,000 LED lights for night racing, and road-quality racing surface — already existed from Formula 1 operations. This meant that the marginal cost of hosting Formula E at Jeddah was substantially lower than the standalone cost of the Diriyah circuit construction, even though the absolute quality of the venue was considerably higher.
The financial efficiency of hosting Formula E at an existing Formula 1 venue represented a mature evolution of Saudi Arabia’s motorsport strategy. Rather than maintaining two separate circuit operations — one for Formula 1 in Jeddah and another for Formula E in Diriyah — the consolidation at Jeddah allowed shared infrastructure costs to be distributed across multiple events, reducing the per-event expenditure while maintaining or improving the quality of each individual championship’s experience.
Media Value and Global Exposure
Formula E’s media exposure represents one of the most significant but difficult-to-quantify sources of economic value for host nations. The championship broadcasts to a global audience through partnerships with major television networks, streaming platforms, and digital media channels. Each race broadcast includes extensive aerial footage of the host city, cultural commentary about the venue’s setting, and promotional segments highlighting local attractions and amenities.
The Diriyah E-Prix’s UNESCO World Heritage setting generated media coverage that consistently extended beyond motorsport outlets. International news organizations, travel publications, cultural commentators, and technology media all covered the juxtaposition of electric racing and ancient architecture, producing coverage that reached audiences who would never watch a motorsport broadcast. This cross-domain media attention generated tourism marketing value that purpose-built racing venues in commercial districts cannot replicate.
Comparative benchmarks from other international motorsport events provide context for estimating Formula E’s media value in Saudi Arabia. The Dakar Rally, which has been held in Saudi Arabia since 2020, was estimated to generate over $300 million in media value per edition based on comparable figures from its final years in South America. While Formula E’s individual event media value is likely lower than the Dakar Rally’s two-week, multi-stage format, the championship’s global broadcast footprint — reaching 1.5 billion cumulative viewers across a season — generates substantial exposure for each host venue.
The cumulative media value of seven seasons of Saudi-hosted Formula E races — comprising 14 race broadcasts plus qualifying sessions, preview shows, and post-event programming — represents a significant long-term investment in international brand positioning for both Diriyah and Jeddah as global cities. The consistency of hosting, with Saudi Arabia appearing on the Formula E calendar every season since 2018, created repeated exposure that built recognition and association over time rather than relying on a single event to generate lasting impact.
Tourism Impact and the Visitor Economy
The tourism impact of Formula E in Saudi Arabia operates across multiple timeframes and channels. The immediate impact involves international visitors who travel specifically for race weekends, contributing to hotel occupancy, restaurant revenue, retail spending, and transportation usage. The medium-term impact involves visitors who become aware of Saudi Arabia as a destination through Formula E media coverage and subsequently plan visits that may or may not coincide with motorsport events. The long-term impact involves the gradual shift in international perceptions of Saudi Arabia as a tourist destination, driven in part by the positive associations created through hosting world-class sporting events.
Saudi Arabia’s tourism sector has been identified as a priority growth area under Vision 2030, with the government targeting 100 million annual visits by 2030 through a combination of religious tourism, cultural heritage tourism, entertainment and events tourism, and nature-based tourism. Motorsport events, including Formula E, contribute directly to the entertainment and events category while supporting cultural heritage tourism through venue choices like the Diriyah World Heritage setting.
The fan experience infrastructure developed for Formula E events also contributed to the broader tourism ecosystem. Fan villages featured entertainment stages, food and beverage operations showcasing Saudi and international cuisine, sponsor activation areas offering interactive experiences, and merchandise retail operations. Post-race concerts featuring internationally recognized musical artists extended the event experience and attracted attendees whose primary interest was entertainment rather than motorsport, broadening the demographic reach of the event beyond core racing fans.
The integration of Formula E events with broader Riyadh and Jeddah tourism offerings — including cultural sites, entertainment complexes, dining districts, and shopping destinations — created opportunities for visitors to experience Saudi Arabia beyond the circuit gates. The timing of the Diriyah E-Prix at the beginning of each calendar year placed the event during one of the most comfortable periods for outdoor activities in Saudi Arabia, encouraging visitors to extend their stays beyond race weekends.
Infrastructure Legacy and Employment Effects
One of the most tangible economic benefits of hosting Formula E was the infrastructure development that served the host cities beyond race weekends. At Diriyah, the event’s presence accelerated road improvements, utility upgrades, and public space development in the area surrounding the At-Turaif heritage district. While these improvements were necessary for event operations — requiring road surfaces suitable for racing, electrical capacity for floodlighting and broadcast equipment, and water and sanitation facilities for large crowds — they also enhanced the area’s accessibility and attractiveness for tourism and local community use throughout the year.
The Jeddah Corniche Circuit’s infrastructure represented a more substantial and permanent legacy. The $500 million pit building, designed by Ulrich Merres of Tilke GmbH, is a four-story facility that functions beyond race weekends. The circuit’s location on the Jeddah waterfront contributed to the broader Corniche development that has transformed Jeddah’s coastline into a mixed-use entertainment, residential, and commercial district. The 2,000-plus LED lights installed for night racing illuminated not only the racing surface but also the surrounding area, enhancing the waterfront’s appeal for evening activities outside of event periods.
The employment effects of circuit construction and event operations created economic value through workforce development and job creation. The Jeddah Corniche Circuit’s construction employed approximately 3,000 workers from 50 countries, working around the clock to complete the facility in less than 12 months. Each race weekend generated temporary employment in event operations, hospitality, security, transportation, and support services, providing income and skill development opportunities for Saudi nationals and residents participating in the growing sports and entertainment sector.
The Saudi Motorsport Company’s role as event operator created demand for specialized skills in event logistics, broadcast production, safety management, and commercial operations. The knowledge transfer from international Formula E operations to Saudi-based personnel represented an investment in human capital that generated ongoing value as these individuals applied their expertise to other events and commercial activities within the Kingdom’s expanding entertainment industry, as detailed in the Diriyah E-Prix.
Commercial Partnership Ecosystem
Formula E’s commercial partnership model, analyzed alongside the Saudi motorsport sponsorship landscape, creates economic value through corporate relationships that extend beyond the racing event itself. National and international brands secure sponsorship, hospitality, and branding rights associated with the E-Prix, generating commercial activity that supports the broader business ecosystem around the event.
Saudi corporations have been particularly active in leveraging Formula E partnerships. The Saudi Telecommunications Company and Saudi Aramco, both major brands with international ambitions, have used motorsport sponsorship — including Formula E visibility — as platforms for global brand building. These corporate partnerships generated marketing expenditure that flowed through the events industry, media buying ecosystem, and creative services sector, creating economic activity that extended well beyond the circuits themselves.
International brands activating at the E-Prix brought marketing budgets that supported local event management, production, and hospitality businesses. The requirement to build temporary brand activation spaces, produce marketing materials in Arabic and English, recruit local event staff, and source catering and logistical services created business opportunities for Saudi-based suppliers and service providers who might not otherwise have had access to international corporate clients.
The Formula E paddock itself functioned as a business networking environment, with corporate hospitality areas facilitating meetings between Saudi business leaders and international executives. The informal networking opportunities created by shared interest in motorsport produced business relationships that extended beyond the event context, generating commercial partnerships and investment discussions that contributed to Saudi Arabia’s broader economic diversification objectives.
Vision 2030 Alignment and Strategic Returns
Formula E’s economic impact in Saudi Arabia must ultimately be evaluated against its contribution to Vision 2030 objectives. The program identifies sports and entertainment as key sectors for economic diversification, targeting $22.4 billion in sports sector value by 2030, up from $8 billion at the program’s inception. Motorsport events, including Formula E, contribute directly to this target through event revenues, associated tourism spending, and the development of a sports industry workforce and supply chain.
The technology messaging inherent in Formula E hosting also supported Vision 2030’s emphasis on innovation and knowledge economy development. By visibly hosting the world’s leading electric racing championship, Saudi Arabia positioned itself within the global conversation about electric mobility, battery technology, and sustainable transportation — sectors that the Kingdom was actively pursuing through investments in Lucid Motors, the Ceer domestic EV brand, and renewable energy infrastructure.
The sports sector’s contribution to GDP was targeted at $16.5 billion annually, representing 1.5 percent of total GDP by 2030. Formula E, as part of the broader motorsport portfolio, contributed to this target through direct economic activity, multiplier effects in tourism and hospitality, and the development of a sports industry ecosystem capable of generating sustained economic value beyond individual event weekends.
Future Economic Trajectory
The economic trajectory of Formula E in Saudi Arabia points toward continued development and expanding returns. The move to Jeddah reduced marginal hosting costs while improving venue quality. The potential future inclusion of the Qiddiya Speed Park Track — a $500 million permanent facility designed for both Formula 1 and Formula E — would further enhance the economic efficiency of hosting by distributing infrastructure costs across multiple championships.
The growth of Formula E’s global audience and commercial value also benefits Saudi Arabia’s hosting economics. As the championship’s broadcast rights, sponsorship values, and merchandise revenues increase, the profile and prestige associated with hosting a round correspondingly increase. Saudi Arabia’s early and sustained commitment to Formula E has positioned the Kingdom as a core partner of the championship rather than a marginal or occasional host, securing favorable terms and priority treatment in calendar planning and promotional activities.
The maturation of Saudi Arabia’s domestic sports and entertainment industry will also enhance future economic returns from Formula E hosting. As local expertise in event management, broadcast production, hospitality operations, and commercial partnership activation deepens, a larger proportion of event-related economic activity will be captured domestically rather than requiring imported services and personnel. This localization of the motorsport value chain represents the ultimate economic benefit of sustained hosting: the transformation of imported expertise into domestic capability that generates ongoing value beyond individual event weekends.
The full return on Saudi Arabia’s Formula E investment will only become clear over the longer term, as the cumulative effects of seven-plus seasons of hosting manifest in tourism statistics, international perception surveys, corporate investment decisions, and the maturation of the Kingdom’s sports and entertainment industry. What is already evident is that the investment was not made in isolation but as a deliberate component of a comprehensive national strategy that leveraged every available mechanism — including electric motorsport — to accelerate the economic transformation envisioned by Vision 2030.
The Diriyah UNESCO Heritage Premium
The Diriyah E-Prix’s six-season tenure at a UNESCO World Heritage site generated a category of economic value that no other motorsport event in Saudi Arabia can replicate. The historic town walls of Diriyah provided a cultural setting that elevated Formula E media coverage from sports reportage to cultural storytelling, generating attention from travel publications, heritage organisations, and cultural commentators who would never cover a race at a conventional motorsport venue.
This cultural media premium amplified the tourism marketing value of the Diriyah E-Prix far beyond what racing action alone could generate. Every broadcast wide shot featuring the illuminated heritage walls, every photographer’s image framing an electric racing car against centuries-old architecture, and every journalist’s description of the juxtaposition between ancient tradition and cutting-edge technology contributed to Diriyah’s positioning as a global cultural tourism destination. The Royal Commission for AlUla’s tourism development strategy, which has leveraged similar heritage-motorsport juxtaposition through the Dakar Rally’s passage through the region, demonstrates the effectiveness of this approach in converting media exposure to actual visitation.
Comparative Cost Efficiency Within the Saudi Motorsport Portfolio
Formula E’s cost efficiency within Saudi Arabia’s broader motorsport investment portfolio merits specific attention. The hosting fees for Formula E, while undisclosed, are substantially lower than the $55-60 million annual Formula 1 hosting fee. The consolidation of Formula E at the existing Jeddah Corniche Circuit from 2025 further reduced marginal hosting costs by eliminating the temporary circuit construction required at Diriyah.
The media value per dollar invested in Formula E hosting may therefore exceed that of Formula 1 on a proportional basis, even though the absolute media value is lower. If Formula E hosting costs Saudi Arabia $10-15 million annually (a speculative but plausible range based on comparable Formula E hosting fees), and the event generates $50-100 million in media value equivalent, the return ratio of three to seven times the investment would be competitive with or superior to Formula 1’s ratio of media value to hosting cost.
This cost efficiency supports the strategic case for maintaining Formula E as a permanent component of Saudi Arabia’s motorsport calendar alongside Formula 1 and the Dakar Rally. The incremental cost of hosting Formula E at an existing F1 venue is modest, while the incremental benefits — in sustainability messaging, electric vehicle technology promotion, and audience diversification — are significant and distinct from what Formula 1 delivers.
For Formula E commercial data, see the Formula E corporate reports and SportBusiness media valuations.