A total of 574 players are up for grabs with Indian wicketkeeper Rishabh Pant, England veteran James Anderson and New Zealand all-rounder Rachin Ravindra among the top names in contention at the two-day auction in Jeddah.
Australian pacer Mitchell Starc smashed auction records last time when he signed with Kolkata Knight Riders for $2.98 million.
An incremental rise in the tournament's salary cap means his price may be potentially eclipsed at the auction, which will be broadcast live to an audience of millions.
"It's time for lights, camera... auction!" the IPL said on social media on Sunday, ahead of the start of the two-day bidding, which opens at 0930 GMT.
"You lose sleep, no doubt about it, and when you do drift off to sleep, you see players and numbers," former New Zealand skipper Stephen Fleming, the Chennai Super Kings coach, said in an IPL video.
"It's a horrible few days as you lead up to it because it means so much."
'Huge excitement'
Rajasthan Royals coach Rahul Dravid said managers had done the groundwork but bidding on the day meant nothing could be taken for granted.
"You can prepare... you have a lot of discussions around the players and the tactics that you might employ," Dravid said, according to the IPL.
"But being realistic, you have to be able to think on your feet a little bit."
Punjab Kings coach Ricky Ponting, the former Australia skipper, said there was "huge excitement" but keeping cool during the bidding was critical.
"I think being really really calm, and really clear, at the auction table is a really important thing," Ponting said.
The IPL has generated billions in revenue since its inception in 2008, turning the Board of Control for Cricket in India (BCCI) into one of the richest governing bodies in sport.
In June 2022 it sold the broadcast rights for five IPL seasons to global media giants for $6.2 billion.
The BCCI has sought to broaden the tournament's profile by staging the auction abroad.
Last year it was held in Dubai, a regular host for international cricket tournaments.
Like Saudi Arabia, it has a large base of prospective fans among its migrant worker population.
Putting the auction on in Jeddah is seen as a win-win for a tournament expanding its global reach and a kingdom using sports to improve its image.
De facto ruler Crown Prince Mohammed bin Salman has backed extravagant sports investments -- set to culminate in Saudi Arabia hosting the football World Cup in 2034 -- to diversify its oil-rich economy.
Critics point to Saudi Arabia's human rights record and the murder of journalist Jamal Khashoggi in the Saudi consulate in Istanbul in 2018, accusing the kingdom of "sports-washing".
But Saudi cricket federation chairman Prince Saud bin Mishal said that staging the auction reflected the kingdom's "commitment to developing the sport and showcasing its position as a global destination for sporting events".
The IPL is a huge earner for Indian cricket and the tournament makes more than $11 billion for the economy each year.
The pioneering IPL helped make Twenty20 cricket hugely popular, spawning copycat events worldwide.
Dates for next year's IPL have not been released but seasons usually run from March to May.
