In this three-part article, we explore key considerations and cost drivers for new-build and retrofit upgrade options as well as factors influencing the modern digital fan experience.
We have a vast global and regional experience in designing, building, project managing and costing some of the world’s most modern and iconic sports and entertainment stadiums and venues that have featured in many World Cups, Olympics, World Championships and beyond.
Part 1 - Modern sports stadium designs: Key considerations and cost drivers for the Middle East region
Sports and entertainment infrastructure is increasingly integral to the Middle East’s economic and cultural growth. Iconic projects such as Qatar’s Lusail Iconic Stadium and Saudi Arabia’s planned mega-venues exemplify the region’s aspirations to position itself as a global hub for major international events. Modern sports stadiums transcend their traditional role as venues for games. They serve as multi-functional urban landmarks that promote tourism, commerce, and community engagement. In part 1 of this article explores the critical considerations in designing such stadiums, the associated cost drivers, and the unique challenges and opportunities within the Middle East.
Modern sports stadiums transcend their traditional role as venues for games. They serve as multi-functional urban landmarks that promote tourism, commerce and community engagement.
Key trends in stadium design
Modern stadiums are designed with fans in mind, prioritizing their comfort and engagement. Enhanced fan zones, expansive concourses, luxury suites, and interactive displays are becoming the norm.
Technologies such as mobile apps provide real-time game statistics, exclusive content and personalized services, enhancing the overall experience.
Advanced technologies such as augmented reality (AR), high-definition video walls, robust Wi-Fi and 5G connectivity are now essential features of contemporary stadiums.
These innovations enable seamless digital engagement, including live streaming, interactive apps and immersive in-game experiences.
Sustainability has become a cornerstone of stadium design, addressing environmental concerns while optimizing operational costs. Energy-efficient systems, solar panels, water-saving technologies and recyclable materials are increasingly incorporated.
Achieving certifications such as LEED and other green standards is becoming a priority for developers aiming to position their venues as environmentally responsible.
To maximize utilization, stadiums are now designed as versatile spaces capable of hosting diverse events such as concerts, conferences, exhibitions and cultural gatherings.
Features like retractable roofs, movable seating, movable pitches and modular spaces enhance the adaptability of these venues.
The Middle East’s hot and arid climate necessitates innovative solutions in building materials and cooling systems. Technologies such as heat-resistant materials, advanced air conditioning and natural ventilation are crucial.
Roofs and facades are designed to minimize heat retention while maintaining energy efficiency.
- Modular construction techniques are increasingly favored for their efficiency. Prefabricating components off-site reduces construction time, health and safety incidents, labor costs and waste, ensuring streamlined project delivery.
Key cost drivers
Urban areas like Riyadh, Dubai and Doha have high land costs, significantly impacting budgets. Prime locations near transportation hubs or commercial districts are desirable but expensive.
Site preparation in desert environments often involves stabilizing soil, grading and installing utilities, which add complexity and cost.
- High-quality, durable materials that can withstand the region’s extreme temperatures are essential. Heat-resistant concrete, advanced insulation and UV-resistant glass contribute to higher construction expenses.
Stadium capacity in terms of number of seats, corporate boxes, etc.
Unique architectural features such as retractable roofs, tier arrangement, iconic facades and dynamic geometries add complexity and elevate costs.
Innovative designs must balance aesthetics with functionality, often requiring advanced engineering solutions.
Robust digital infrastructure, including 5G networks, interactive platforms and advanced broadcasting equipment is critical to meeting modern demands.
These technologies enhance the fan experience but require significant upfront investments.
Incorporating energy- efficient systems, solar panels, and water-saving technologies increases initial costs but delivers long-term savings and environmental benefits.
Green building certifications often require additional investments in materials and systems.
The Middle East relies heavily on expatriate labor for construction projects. Skilled labor shortages and high demand for specialized workers can drive up costs.
Effective project management is essential to coordinate stakeholders, meet regulatory requirements, and maintain schedules, adding to overall expenses.
Estimated cost of a modern 60,000 to 70,000 seater sports stadium in the Middle East
The cost of building a 60,000 to 70,000 seat stadium in the Middle East will vary greatly depending on factors such as location, design complexity, stadium capacity and specific technologies. Below is a rough cost estimate range based on recent projects in the region. In summary, a typical 60,000 to 70,000 seater stadium in the Middle East costs between USD 860 million and USD 1.38 billion, with variations based on location, design, and technology integration. It is to be noted that the below indicative cost ranges exclude various items such as but not limited to Signature Architectural designs, unique and or remote locations, land costs, VAT, inflation, soft costs, LFF&E, OS&E, etc.
Part 2 - Designing revenue-generating stadiums and upgrading and retrofitting existing stadiums
Designing Revenue-Generating Stadiums - In addition to being architectural landmarks, modern stadiums must function as revenue-generating hubs. This requires a careful balance between design, functionality, and operational efficiency. Key considerations include:
Maximizing non-matchday revenue
Hosting non-sporting events such as concerts, conferences, exhibitions and festivals increases utilization and profitability.
Multi-purpose venues with adaptable spaces and superior acoustics are more attractive to event organizers.
Optimizing operational efficiency
Artificial intelligence (AI) and Internet of Things (IoT) technologies streamline operations, from predictive maintenance to energy optimization.
These systems reduce costs and enhance the overall experience for spectators.
Revenue streams
Matchday revenue includes ticket sales, merchandise and food and beverage sales.
Non-matchday revenue is generated through venue rentals, stadium tours, retail outlets, and corporate sponsorships.
Corporate sponsorships, including naming rights and advertising, provide a significant financial boost.
Usable areas, such as concessions and kiosks, which only require a small amount of space (0.05m2 usable area per seat), are capable of generating a large amount of revenue compared to concourses (0.50m2 usable area per seat), which are more space-hungry yet generate little or no revenue. Two options exist to address this design and revenue equation: (i) make these spaces, such as plants, concourses, back of the house and the WCs as cheap as possible or (ii) explore opportunities to allow some of these spaces to generate revenue. Understanding the sensitivity of changes to overall cost and revenue at a particular point in the design is also important. These factors in each stadium and corresponding variation often mean there are unique design, cost and revenue considerations on any stadium redevelopment.
Upgrading and retrofitting existing stadiums - While building new stadiums is often the focus, upgrading and retrofitting existing stadiums can be a cost-effective way to enhance capacity and functionality.
The advantages arising from upgrading and retrofitting versus new build are difficult to define. One potentially salient advantages of redevelopment over new build are the demands, or design and operational standards, to which new construction must comply such as row depths and tread. In most cases, increasing row depths and seat widths (particularly in corporate locations) of stadium terracing dramatically reduces the overall number of seats. This may prove to be counterproductive when the primary reason for redevelopment is often to increase capacity.
This approach addresses the following key areas:
Expanding seating capacity to accommodate more spectators can significantly boost revenue potential.
Upgrades may include reconfiguring seating layouts, adding upper tiers or incorporating standing- room areas.
Enhancements such as improved concourses, updated amenities and advanced digital infrastructure elevate the fan experience.
Upgraded locker rooms, media centers and hospitality areas meet the expectations of modern athletes, broadcasters and VIP guests.
- Retrofitting older stadiums with energy-efficient systems, including LED lighting, solar panels, and smart HVAC systems, reduces operational costs and aligns with sustainability goals.
- Retrofitting ensures compliance with updated safety standards, including fire protection systems, accessibility features and structural reinforcements.
- Adding high-speed Wi-Fi, digital signage and interactive mobile apps modernizes older venues, enabling better fan engagement and operational efficiency.
Cost Model Range for Upgrading Stadiums (in USD)
The above cost model assumes these upgrading works are driven by a stadium seat expansion project of between circa 10,000 to 20,000 additional seats as well as major upgrades for FIFA World Cup compliance, technology and health and safety upgrades, etc.
Upgrading existing stadiums not only extends their lifecycle but also provides a faster and often more cost-effective solution compared to new construction. These retrofits can significantly enhance revenue opportunities and align older venues with modern standards. It is to be noted that the below indicative cost ranges exclude various items such as but not limited to Signature Architectural designs, unique & / or remote locations, land costs, VAT, inflation, soft costs, LFF&E, OS&E, etc.
Part 3 - Digital Stadiums: Revolutionizing the fan experience
Saudi Arabia’s Vision 2030 emphasizes sports’ transformative potential in driving economic diversification. Digital stadiums are pivotal in this strategy, leveraging advanced technologies to enhance fan experiences and operational efficiency. These state-of-the- art venues are redefining global standards in sports infrastructure.
Key technologies
- High-speed Wi-Fi and 5G networks form the backbone of digital stadiums, enabling real-time activities such as live streaming, interactive apps and AR experiences.
IoT sensors monitor crowd dynamics, optimize energy consumption and enhance safety through predictive maintenance.
AI-driven systems personalize fan experiences and improve operational efficiency, from navigation to resource allocation.
- These virtual replicas of physical stadiums use real- time data for simulations, improving crowd management, energy efficiency and emergency preparedness.
- Centralized hubs integrate IT and operational systems, enhancing decision-making and incident response.
- Drones enhance surveillance and logistics, while autonomous robots improve cleaning and maintenance efficiency.
- AR and VR create immersive fan experiences, offering features like virtual stadium tours, real-time analytics and enhanced game visuals.
Conclusion
Building a modern sports stadium in the Middle East is an ambitious and complex undertaking that combines advanced engineering, innovative and cutting-edge technologies and unique architectural designs. By understanding the key cost drivers — from land acquisition and construction methods to technology integration and sustainability — stakeholders can better plan for a successful and financially sustainable project.
Upgrading and retrofitting sports stadiums also provides financially viable and environmentally sustainable options to clients, particularly when these stadiums often exist in urban areas where mature or semi-mature infrastructure exist.
Whether it is building new, retrofitting or upgrading existing stadiums, the digital fan experience is a must, with AV technologies playing a key role in how a fan experiences a major sporting event or indeed a major musical event.
The progression of cost modeling through the integration of design tools like BIM is invaluable, but integrated financial models that bring together operational, program and cost data, such that design can be informed, are more powerful and change the way stadiums and arenas are developed. AECOM’s ‘SAINT’ (Stadium and Arena Investment Tool) does just this. It allows the client to fully understand the potential of their stadium development or redevelopment at the earliest possible stage. It takes into account all the different fundamental aspects of stadium development, as discussed above, and understands how they are all linked, enabling the client to gain a clear and concise picture of the stadium they both want and need.
As the region continues to grow as a global sports and entertainment destination, stadiums will play a key role in defining the Middle East’s infrastructure legacy. With the right blend of innovation, functionality and sustainability, these stadiums will not only serve as state-of-the-art venues for sporting events but also as hubs for cultural and economic activity, contributing to the broader development goals of the region.
By understanding the key cost drivers — from land acquisition and construction methods to technology integration and sustainability — stakeholders can better plan for a successful and financially sustainable project.