Saudi Arabia is Going All in on Sports

In May 2023, Saudi Arabia’s football federation made headlines when it signed a deal with Portuguese football star Cristiano Ronaldo to join local club Al Nassr for an annual salary of $75 million, with the potential to reach $200 million through commercial agreements. Since then, a host of football stars, including France’s Karim Benzema and Brazil’s Neymar, have joined the Saudi League, as the country looks to establish itself as a major investor and football sporting hub.

But Saudi's investment in sports is far from limited to football. Driven by Vision 2030, Saudi is attracting athletes, global championships, and investment in its sports industry. This includes everything from investing and hosting major sporting events and purchasing football clubs in Europe to developing sporting infrastructure in the kingdom. Through its efforts, it aims to promote sports, enhance international engagement, boost tourism, and create employment opportunities for Saudis.

Saudi as a hub for sports

This week, Saudi Arabia launched the inaugural edition of the Esports World Cup, which builds on the previous success of Gamers8 and puts Saudi on the map of global esports.

Saudi is also making forays into fight sports, having recently launched the Middle East’s first regional MMA league in partnership with the Professional Fighters League (PFL) through the PIF-owned SRJ Sports Investments.

One of the kingdom’s biggest investments has been in golf. In 2021, the PIF-backed LIV Golf League launched as a rival to the established PGA Tour. Last year, Saudi’s sovereign wealth fund the Public Investment Fund (PIF) entered into talks with the PGA Tour and Europe’s DP World which could see fund investing more than  $1 billion in the PGA Tour. The largely controversial deal is still being negotiated.

In 2022, Aramco partnered with the International Cricket Council and the Indian Premier League. Aramco also backs the Diriyah E-Prix, which is in its fifth year. 

Riyadh has made investments in tennis, with the Saudi capital set to host the next three editions of the Women's Tennis Association Finals from 2024-2026, building on the success of the Aramco-backed Diriyah Tennis Cup.

The kingdom has also secured hosting rights for major events such as the Asian Champions League Finals, the Asian Games in 2034, and the FIFA World Cup in 2034.

Encouraging Investment in Sports

In 2021, Saudi Arabia’s Ministry of Sports introduced the online licensing platform NAFES to encourage foreign investment in sports, facilitating full ownership of clubs, academies, and sports centers across 27 different sports--the first initiative to allow foreign investment in the kingdom’s sports industry.

Last year, Saudi Crown Prince and Prime Minister Mohammed bin Salman announced the sports club investment and privatization project to encourage investment in the sporting sector and privatize sporting clubs. This week, the Saudi Ministry of Sport announced the privatization of 14 teams from various divisions.

Also last year, PIF which holds significant stakes in clubs like Newcastle United and Saudi domestic clubs, established SRJ Sports Investments to accelerate the sports industry in Saudi Arabia and MENA by acquiring broadcasting and intellectual property rights for sports events and organizing and hosting global sporting events in Saudi.