The Hidden Risks of Skipping Feasibility in Saudi Arabia’s Gym Business

Saudi Arabia’s fitness industry is undergoing rapid transformation, projected to expand from about USD 1.14 billion in 2024 to USD 1.79 billion by 2030, with an annual growth rate of 8–10%. While the sector’s momentum tempts many entrepreneurs, bypassing a comprehensive feasibility study can turn a promising venture into a costly misstep. One of the biggest risks lies in misreading market dynamics. The industry is highly fragmented, with dominant domestic players such as Leejam Sports (Fitness Time) and several global franchises capturing a significant share. Without tailored market intelligence, market entry risk is being squeezed between established brands and emerging competitors, making it difficult to secure prime locations or build a loyal customer base.

Pricing strategy errors are another common pitfall, especially in the growing Low-Cost, High-Value (LCHV) segment. Expected to grow 35–45% annually by attracting price-sensitive non-members, this market requires precise positioning. Setting prices too high can alienate budget-conscious clients, while going too low can erode margins and dilute brand value. Operational setbacks can also occur when licensing timelines and compliance costs are underestimated. Gym operators must secure approvals from the Ministry of Investment (MISA) and the Ministry of Sport—typically a 15–20 working day process if documentation is complete. Delays or unforeseen expenses can disrupt launch plans and deplete marketing resources. A feasibility study also uncovers high-growth niches—such as women-only fitness, youth programs, and senior wellness—each with unique cultural, operational, and design considerations. Furthermore, it highlights auxiliary revenue streams like personal training, dietary consulting, spa services, and wellness tourism, which can significantly boost profitability.



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