Beyond Black Gold - Saudi Fund Funnels Billions Into Sports

By Achraf Ainaqi & Matin Mohammadi , UCEA Family Office Team.

The government of Saudi Arabia aims to diversify its economy by attracting foreign investment, tourism, and improving its global image, reducing its dependence on oil. The Public Investment Fund (PIF) is the sovereign wealth fund of Saudi Arabia. It is one of the largest in the world, with assets estimated at over $600 billion. The PIF has been involved in a number of sports investments, including:

• Football: The PIF acquired a majority stake in the Premier League's Newcastle United Football Club in 2021. It has also been linked with investments in other European clubs, such as Manchester United and Real Madrid.
• Golf: The PIF owns the European Tour and is a major sponsor of the Saudi International golf tournament. It has also been linked with investments in other golf properties, such as the Pebble Beach Golf Links.
• Boxing: The PIF is a major sponsor of the Professional Boxing Champions (PBC) and has been linked with investments in other boxing promotions, such as Matchroom Boxing .

Additionally, the government has pivoted towards various domestic investments, such as acquiring a 70% stake in Al Nassr, Al Ittihad, Al Ahli, and Al Hilal. These are the four most successful football clubs in Saudi Arabia.

They are also funding the construction of new stadiums to be used for domestic and international matches and they are expected to boost the country's hosting capabilities.

Furthermore, The PIF is also launching a new women's football league. This is a significant development as women's football has been largely neglected in the country in the past.

Saudi’s investments have been met with mixed reactions. Some people have welcomed them, arguing they will help to promote sport in Saudi Arabia and attract business. Others have argued that they are a form of sportswashing and that the PIF is using sport to deflect attention from its human rights record.

Do you view Saudi's ventures as a purely lucrative financial decision or a means to rebuild their image?