Dubbed 'snooker's fourth major' and boasting a prize fund in excess of £2million, the event will be the second most valuable on the 2024 calendar, behind the World Championship.
Unlike next month's 10-man invitational, also to be held in Saudi Arabia, it will feature a field of 128 tour players plus six local wild cards.
The event was confirmed as part of a 10-year partnership with the Saudi Arabian Billiard & Snooker Federation and the Ministry of Sport for Saudi Arabia, an arrangement which also features the World Nineball Tour.
The 2024 World Pool Championship will take place at the Green Halls in Jeddah in June, before snooker takes over in Riyadh on August 31.
Matchroom Sport chairman Eddie Hearn said: "The Kingdom of Saudi Arabia has forged a reputation for growth and creating new opportunities for sports to grow in a new market to new fans.
"The country has hosted some of the world’s premier sporting events in recent years, welcoming visitors from all over to experience its passion for sport and unique culture.
"The addition of both the Saudi Arabia Snooker Masters and World Pool Championship over the next decade further enhances that as it heralds an exciting chapter for Snooker and Nineball pool.
"We have seen the incredible impact boxing has had in this region. Now, I believe we will see Billiards cement its legacy here too, creating incredible opportunities and competition for the finest players on the planet."
Plans for a tournament in Saudi Arabia were originally announced in late 2019 only to be shelved until confirmation that the Riyadh Season World Masters of Snooker would take place from March 4-6 this year.
They have met criticism from Amnesty International, whose UK s Economic Affairs director Peter Frankental told the Guardian: "It was just a matter of time before Saudi Arabia’s huge sportswashing machine sucked in snooker along with almost every other major world sport.
"If the likes of Ronnie O’Sullivan and Judd Trump play in Riyadh, they shouldn’t hesitate to speak out about human rights."
Trump though had previously indicated that he would happily see the World Championship played in Saudi Arabia, a comment which met criticism from seven-time champion Stephen Hendry.
