Saudi Arabia Disrupting the Sports Industry

Over the past decade, Saudi Arabia has been introduced as a powerful player in the global sports industry. Following the Vision 2030 framework, the Kingdom is investing billions across various sports. They are tackling the whole sports industry thus they invest from football and golf to boxing and mixed martial arts. This is an effort to diversify the country’s economy, boost international soft power, and shift global perceptions of the nation. Sports, athletes, and the brands closely aligned with the industry, hold significant power in shaping opinions and influencing global views.

Football

When Saudi Arabia chose to enter the world of football their decisions/ goals were really bold but also strategic. In 2021, the Saudi’s Public Investment Fund (PIF) acquired Newcastle United in a £305 million deal . This was not a surprise as the PIF was trying for a lot of years to buy the club, and similar deals took place in the past as well, with the most known example being the purchase of Manchester City from the Emirate of Abu Dhabi. Thie Newcastle acquisition can also be seen as a symbolic move that marked the Kingdom’s arrival on the European football stage.

In the Saudi Arabian domestic league there was more than $1 billion spent on players from 2022 to attract global talent. The PIF owns 75% stakes in four of the biggest clubs within the league. This shows that the majority of the money spent is coming from the fund in an attempt to better their ‘product.’ The transfer moves aim to increase the competitiveness of the league and draw international attention to the Kingdom’s growing football ecosystem.

Lastly, in 2023, FIFA confirmed Saudi Arabia as the host for the 2034 World Cup, solidifying the country as one of the future sports hubs. Prior to the World Cup the country will build 11 new stadiums and they will also refurbish 4 existing ones. The total estimated cost of the stadiums, transportation network and related infrastructure is approximately €460 billion.

Combat Sports and Golf

Saudi Arabia’s strategy is not only limited to football. The Kingdom has become a premier destination for combat sports. Additionally, Saudi Arabia is making significant advancements in the world of golf.

Boxing events have become a staple of Riyadh’s international sports calendar. The country is hosting the biggest boxing events globally with the biggest athletes participating in these 'megafights’. To do so they are offering unmatched financial incentives that other promotions or companies cannot even imagine giving. Through these events the country is providing entertainment and tourism initiatives and are also able to draw million people's attention around the world. Through these events Saudi Arabia can be seen as a modern, open destination.

UFC has also strengthened its relationship with the Kingdom. In 2024, Saudi Arabia hosted its first UFC Fight Night in Riyadh. Later that year, Riyadh Season became the title sponsor of UFC 306 in Las Vegas, held at the Sphere on Mexican Independence Day. The UFC event was the first sporting event at the venue and highlighted the Kingdom’s expanding influence on global fight promotions.

Golf has been another major focus. The PIF helped with the LIV Golf tour in 2022. This was major news in the golf world because it disrupted the traditional golfing world with prize funds and player contracts unmatched by existing tours. PIF spent more than $2 billion in funding LIV and forced a merger discussion with the PGA Tour.

The Strategy

Saudi Arabia’s sports spending goes much beyond just prestigious reasons. Their aim is to enjoy long term success by achieving:

• Economic Diversification: Oil still makes up to 70% of government revenue thus the country is looking at developing new revenue streams. The Kingdom is investing in sports to stimulate tourism, entertainment, and service sectors. The global sports industry presents a lucrative growth opportunity for the state.

• Soft Power and Global Branding: By hosting international events and partnering with elite sports organisations, Saudi Arabia has reshaped its image on the world stage. Sports often serve as a form of soft diplomacy, offering influence in diverse markets.

• Engaging Youth and Society: With over 65% of the population under the age of 35, sport provides a powerful tool for youth engagement and public health It also can be seen as taking the correct steps towards social liberalisation and cultural openness which are major pillars for the country to be seen in a more friendly way from the rest of the world.

• Tourism Development: Events like Riyadh Season, the Saudi Cup (horse racing), and other international tournaments, picking with the 2034 World Cup can contribute to the country’s ambition to attract 10 million international sports visitors annually by 2030. These visitors spend money in other industries as well. Building on sports tourism the country can also promote their museums, hotels, malls and much more and start to be considered as a good leisure destination.

What’s Next?

Saudi Arabia is set to keep expanding its presence in the sports industry by:

• Preparing for the 2034 FIFA World Cup with major investments in infrastructure and logistics.

• Continuing its push in on ongoing projects/ deals.

• Expanding into other traditional sports (e.g into tennis by hosting the Next Gen Finals, and possibility to introduce a Masters 1000 tournament by 2028)

Conclusion

To conclude, Saudi Arabia’s sports investments depict a long-term strategy aimed at shaping its image and revenues beyond oil. Through investing in football, combat sports, and other sport related global partnerships, the Kingdom is introducing a new way of how nations can use sports for much more than just entertainment, but for diplomacy and international relevance. Similar examples were used in the past where unpopular regimes used the hosting of sporting events in a way to either show their dominance or shape their image.(even if not as extreme, examples like Nazi Germany's 1936 Olympics or Argentina's 1978 World Cup show how regimes have used global sports events to shape their image). This has never led to the results they were hoping for. However this case is different, the country is investing an unparalleled amount of money, using a multi- layered strategy that has already started producing results. My belief is that what we are witnessing cannot be described as simply 'sportswashing'. The country is going through a total makeover and rebranding, with sports being one of its tools.