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The overall value of Arab-owned horses globally in 2021 was over US$ 30.081 billion, of which the United Arab Emirates imported US$24.2m in Horses, becoming the 16th largest importer of Horses in the world, while Bahrain spent US$1.03 million on horses including Arabians. This says a lot about the buying power of the Gulf nation, as well as the region, considering the total population is only fifty-six million people across 7 countries.
Another global phenomenon is that at the top tier, the volume of horses is down, but turnover is up. This is partially attributed to a higher demand for horses that are bred for intelligence, performance, conformation and high residual value.
NEW HUB?
The hub for high-end independent racing used to be the UK or America – but now it is here in the Middle East. Regional racehorse owners gather at the largest local and international auctions to select the best. Recently Arabs proved to be top spenders at the elite Tattersalls October Sale (2023), purchasing over US$18.54 in bloodstock, which was an estimated 42% of the Book 1 total purchases.
Earlier, it used to be a very different market, where affluent enthusiasts chose to acquire & race bloodstock globally. Now collectors are selective about the racehorses in their boutique racing stables, choosing to maintain a smaller number of highly elite horses aimed at the most iconic races in the world.
Another speciality of Arab owners is an unquenchable thirst for local Group racing.
THE MARKET
The GCC is a mature market with a lot of affluent and influential owners that purchase the most well-bred horses that reach the market. They gravitate to horses with interesting pedigrees that could win them elusive and iconic trophies in the global racing arena as well as the key regional races on their home ground.
The racing season at Meydan Racecourse comprises 14 meetings and precedes the US$ 30.5 million Dubai World Cup meeting on March 30th. Dubai Racing Club has increased prize money by 27% year-on-year.
While the 2023-24 Riyadh season, will feature more races at King Abdulaziz Racecourse and a 7% increase in prize money compared to the previous season, not including the US$35.35m prize fund for the prestigious Saudi Cup race meeting.
Horses are based internationally at times to facilitate better training at world-class historic stables and travel to major race meetings around the world. However, Arab owners are gravitating towards dual-training models, where the horse will be trained by a locally-based trainer during the GCC season and then sent to an international trainer for the rest of the year.
INDUSTRY GROWTH
The global horse racing market size was valued at USD 402.3 Billion in 2022 and is expected to reach US$793.9 billion by 2030, growing at a (compound annual growth rate) CAGR of 8.89% during the forecast period from 2023 to 2030. Currently, the UAE spends nearly US$600 million on training services while an estimated US$100 million per annum was spent by the country’s equestrian clubs on new products, services and suppliers.
A Q4 2022 report by Transparency Market Research predicted the equine sector within the UAE would be worth US$24.5 billion in 2023, covering a full spectrum of products, innovative treatments and services, from nutritional supplements to advanced cell-stem therapies.
Of which the market size of high-performance horse feed has reached more than US$35 million per annum, solidifying the UAE’s global position in this regard. The Middle East’s High Performance Horse Feed Market led by the UAE size is estimated to be US$50 million in 2019 and is estimated to grow at a CAGR of 3.4% during the forecast period 2020-2025.
Commenting further on the development of racing in the region, leading Saudi bloodstock agent Ahmad Alabdullatif, said: “Equestrianism in the Kingdom of Saudi Arabia is leaping forward with the support of the Custodian of the Two Holy Mosques King Salman bin Abdulaziz and Crown Prince Mohammed bin Salman. Under the management of Prince Bandar, horseracing in Saudi has managed to develop quickly in a short time. The entire industry is witnessing a new era, and with everyone’s contribution, we can achieve further success.”