Saudi Arabia launch a multi-billion dollar in sports investment company

Saudi Arabia plans to launch a multi-billion dollar investment company to expand in the sports sector.

  The "Financial Times" newspaper quoted two informed sources as saying that "The sports group will be part of the Saudi Public Investment Fund, and will have cash reserves to fund its expansion, in an indication that the Kingdom is committed to carrying out more acquisitions, investments and joint ventures in the fields of football, tennis and other sports”.

In an indication that the Kingdom is committed to carrying out more acquisitions, investments and joint ventures in the fields of football, tennis and other sports.

According to “Bloomberg”, and according to people familiar with Saudi Arabia’s strategy in this regard, the Saudi Professional League League is discussing the option of new broadcast deals and partnerships with private equity companies to increase the attractiveness of competition, as the Kingdom works to become a leader in the world of professional sports.

$700 billion Saudi wealth

The $700 billion Saudi wealth fund and state oil company Aramco last month took over several local clubs. One of the people, who asked not to be named because of the talks, said the goal is for the new owners to build the teams' brands and revenue and then sell their stakes to investors including global private equity firms to benefit from their expertise in overseeing sports teams.

International deals

  Saudi clubs announced during the last period the conclusion of international deals with players and coaches, the first of whom was the Portuguese Cristiano Ronaldo to victory, at the beginning of this year, and the Al-Ittihad club, the champion of the Roshen League, announced his contract with the French Karim Benzema and Ngolo Kante, and the promising Portuguese striker Joao Felipe “Jota”.

Al-Ahly also officially contracted with goalkeeper Mendy and Brazilian striker Firmino, in addition to Al-Ettifaq club announcing the appointment of former Liverpool star Stephen Gerrard as its new coach.

Last June, the Ministry of Sports announced the transfer of ownership of 4 major local clubs, namely Al-Ittihad, Al-Ahly, Al-Nasr and Al-Hilal, to the Saudi Public Investment Fund, as part of the investment and privatization project for sports clubs.

It should be noted that, Business activity within the non-oil private sector in Saudi Arabia continued to improve in June, with production and new orders increasing at an accelerating pace.