Saudi Arabia has recently emerged as one of the most influential players in global sports, reshaping industries through massive financial commitments. With seemingly limitless resources and strategic ambitions, Saudi Arabia sports investment have transformed multiple sports landscapes. But how exactly did the kingdom acquire such immense wealth, and how are these resources shaping global sports?
Saudi Arabia’s Wealth: From Oil to Global Influence
To fully appreciate the scale of Saudi Arabia sport investments, it’s essential to understand the origins of their vast wealth. The kingdom’s economy is primarily driven by its abundant oil reserves. Discovered in the 1930s, Saudi Arabia holds approximately 17% of the world’s proven petroleum reserves, making it one of the most critical energy producers globally.
The state-owned oil giant Aramco is the world’s most profitable company, responsible for billions of dollars in annual revenue. This oil wealth not only provides financial stability but also facilitates expansive international investments. In recent years, Saudi Arabia has actively diversified its economy beyond oil, strategically investing in global sports as part of its broader Vision 2030 economic reform initiative.
Saudi Arabia Sport Investments: Why Sports?
As part of its economic diversification, Saudi Arabia sees sport as an ideal sector to expand its global influence, reputation, and soft power. While the kingdom’s critics view these moves as “sportswashing”—an attempt to distract from human rights criticisms—Saudi Arabia frames its involvement in sports as modernization and international engagement.
Indeed, no country has executed sports investment at the scale Saudi Arabia is currently demonstrating. Unlike neighboring Qatar, which hosted the 2022 FIFA World Cup, Saudi Arabia boasts significantly deeper pockets and more ambitious plans, evidenced by its extensive portfolio of sporting acquisitions.
Football: A Strategic Entry Point
Football was among the first and most prominent areas for Saudi Arabia sport investments. In 2021, Saudi’s Public Investment Fund (PIF), a sovereign wealth fund with assets exceeding $700 billion, acquired English Premier League club Newcastle United for over £300 million. This marked a turning point, showcasing Saudi ambition on the global stage.
Following Newcastle’s acquisition, Saudi Arabia began injecting significant funds into its domestic league. In January 2023, global superstar Cristiano Ronaldo signed with Saudi Pro League club Al Nassr, initiating an influx of prominent international players. The summer 2023 transfer window alone saw a staggering $957 million spent by Saudi clubs, second only to the English Premier League.
Top European footballers including Neymar, Karim Benzema, Sadio Mane, and N’Golo Kante joined Saudi clubs, dramatically raising the league’s international profile. Saudi Arabia will also host the 2034 FIFA World Cup and has secured strategic sponsorship agreements, notably Aramco’s $100 million-a-year FIFA deal.
Golf: Disrupting Tradition with LIV Golf
Saudi Arabia sport investments extended boldly into golf with the launch of LIV Golf in 2021. Backed by $2 billion from PIF, LIV Golf quickly became a rival to the established PGA Tour. This bold investment shook the golf world, eventually forcing the PGA Tour to merge commercially with LIV Golf in 2023.
Though negotiations remain ongoing, Saudi Arabia’s influence in golf is now undeniable. Their investment not only impacted the financial landscape of professional golf but also redefined how golf tournaments are structured and funded.
Cricket: Sponsorships and New Competitions
Cricket, a sport beloved by billions globally, particularly in South Asia, is another focal point of Saudi Arabia sports investment. Aramco became the naming sponsor for major ICC tournaments, including the Cricket World Cup. Saudi Tourism also secured a major sponsorship deal with India’s lucrative Indian Premier League (IPL).
Saudi’s PIF is reportedly considering substantial investment in launching a secondary IPL-style tournament, potentially creating a major shift in cricket’s economic structure by significantly expanding its global commercial value.
Horse Racing: Setting Records with the Saudi Cup
Horse racing in Saudi Arabia also benefited from ambitious investments. The annual Saudi Cup at King Abdulaziz Racetrack in Riyadh boasts a $20 million purse—the largest in horse racing history. Saudi leadership has openly expressed the goal of becoming the premier destination for elite horse racing events worldwide.
Boxing: A New Home for Mega-Fights
Saudi Arabia rapidly positioned itself as a global center for elite boxing events. Starting in 2019 with Anthony Joshua’s heavyweight clash against Andy Ruiz Jr., major boxing matches have consistently gravitated toward Riyadh. Events involving Tyson Fury, Deontay Wilder, and Oleksandr Usyk underline Saudi Arabia’s emerging dominance in the sport, primarily driven by their unmatched ability to finance huge prize purses.
Formula 1 and Motorsports Investments
Saudi Arabia’s 2021 hosting of its first Formula 1 race in Jeddah signaled another strategic sports investment. Alongside the F1 Grand Prix, PIF also invested £400 million in the McLaren F1 team (though later selling to Bahrain), underscoring their commitment to motorsports. Additional investments in Formula E highlight the kingdom’s broader motorsports strategy.
Women’s tennis has become another battleground for Saudi Arabia sports investment. The WTA’s decision to host its season-ending finals in Riyadh has drawn criticism due to the country’s human rights record, yet stars like Ons Jabeur support the move, citing potential opportunities to advance women’s sports within the kingdom.
Wrestling and MMA: Expanding Influence
Saudi Arabia hosts two WWE events annually, demonstrating a strategic partnership dating back to 2014. MMA investments followed, with the PIF’s $100 million stake in the Professional Fighters League (PFL), promising expanded events throughout the Middle East.
eSports: Targeting Youth Engagement
Recognizing eSports’ potential, Saudi Arabia aims to dominate this fast-growing sector. Announced by Crown Prince Mohammed bin Salman, the Riyadh eSports World Cup will feature record-breaking prize pools, highlighting another dimension of Saudi Arabia sports investment aimed at younger demographics.
Extensive Global Sponsorships
Beyond direct investments, Saudi Arabia’s state-linked sponsorships are extensive, spanning over 320 agreements globally. These deals include prestigious football sponsorships like Lionel Messi’s association with Visit Saudi and Aramco’s sponsorship across cricket, basketball, golf, and motorsports events worldwide.
Future Ambitions: Olympics, Rugby, and More
Saudi Arabia’s ambitions in the global sports sector are expansive, extending well beyond current investments into new territories and high-profile competitions. Among these future ambitions, hosting the Olympic Games is a standout goal. Historically, the Olympics have presented considerable financial challenges for host nations due to immense infrastructure demands and the high costs involved. However, Saudi Arabia is uniquely positioned to overcome these challenges, backed by seemingly endless financial reserves and the absence of electoral pressures that democratically governed nations face. Hosting the Olympics would complement the kingdom’s plans to host the 2034 FIFA World Cup, showcasing its ability to organize and fund two of the world’s largest sporting events.
Beyond the Olympics, rugby has recently emerged as another prime target for Saudi Arabia sports investment. The kingdom’s sovereign wealth fund, the Public Investment Fund (PIF), has reportedly entered advanced discussions to purchase stakes in top English Premiership rugby clubs, including renowned names such as Gloucester, Leicester Tigers, Northampton Saints, and Newcastle Falcons. The proposed £60 million investment would not only secure partial ownership but also grant Saudi Arabia lucrative stadium naming rights and opportunities to establish rugby academies within its borders. This strategic move could significantly influence rugby’s global profile, mirroring the transformative effect Saudi investments have had in other sports such as football and golf.
Saudi Arabia is also actively assessing opportunities in athletics. World Athletics President Seb Coe indicated that the organization would cautiously consider Saudi investment if the nation demonstrates an authentic commitment to nurturing fan engagement and ensuring stadiums are filled, addressing concerns stemming from the lackluster attendance during past Middle Eastern athletics events.
Absence in American Sports – For Now
Although Saudi Arabia sports investment have reshaped multiple global sports markets, a notable gap remains regarding America’s most popular leagues, specifically the NBA, NFL, and MLB. Various structural challenges currently make these leagues less immediately attractive or accessible to Saudi investors.
For example, American sports leagues typically employ stringent salary caps designed explicitly to prevent wealthier owners from simply buying competitive dominance. This structure contrasts significantly with European football or individual-based sports like golf, where unlimited financial resources can have immediate and decisive impacts. Moreover, existing ownership structures and stringent regulations in American leagues present significant barriers, with owners and league officials cautious about international or sovereign-state involvement that could alter competitive balance or attract political controversies.
However, despite these challenges, the potential for disruption should not be underestimated. Saudi Arabia’s successful entry into the global golf market through the creation and aggressive funding of LIV Golf demonstrates its willingness to bypass established sporting structures by creating entirely new competitions. Should the kingdom decide to enter the American market, it could similarly opt to establish competing leagues or events, offering unprecedented financial incentives to entice top-tier athletes away from existing structures.
Saudi Arabia’s absence from the major U.S. sports leagues might be temporary, contingent primarily on strategic opportunity, regulatory shifts, or changing attitudes within these American leagues. Given the scale of Saudi Arabia sport investments and the nation’s track record of reshaping global sporting markets, its eventual participation in the American sports landscape could represent the next seismic shift in sports economics.
Global Impacts of Saudi Arabia Sport Investments
The unprecedented scale and scope of Saudi Arabia sports investment are reshaping the international sports economy. Through strategic acquisitions and sponsorships, Saudi Arabia’s Public Investment Fund and state-linked enterprises have already left an indelible mark on football, golf, cricket, motorsports, boxing, tennis, and eSports.
While critics decry these moves as attempts to “sportswash” the kingdom’s human rights record, the financial power behind Saudi Arabia sport investments has undeniably transformed multiple global sporting landscapes. Whether viewed positively or negatively, these mega-deals are rewriting the rules of the game, positioning Saudi Arabia at the epicenter of global sports finance for decades to come.
