Saudi Arabia’s ambitious Vision 2030 plan is seeing major progress through its investment in global sports sponsorships. The Kingdom’s strategy to reduce its dependency on oil now includes over 900 sports deals, signaling a significant shift toward economic diversification and international influence.
According to Play the Game, a sports ethics institute based in Denmark, Saudi Arabia, also holds over 1,400 positions in sports organizations globally.
Leveraging Sports for Image and Influence
The Public Investment Fund (PIF), a $925 billion sovereign wealth fund, has been at the forefront of these investments, accounting for more than one-third of the sponsorships.
Stanis Elsborg, head of Play the Game, highlighted that the Kingdom uses high-profile sports events as part of its campaign to project an image of modernity and success.
“They’re leveraging sport as a powerful platform to tell a story – a narrative carefully designed to reshape their global reputation and cement their place in geopolitics,” Elsborg noted. This approach not only generates economic returns but also shifts attention away from Saudi Arabia’s human rights record.
Long-Term Investments: A High-Stakes Bet
The Kingdom’s sports sponsorships, including its takeover of Newcastle United in 2021 and investments in golf, boxing, and Formula 1, are not just for financial gain but for establishing a long-term economic impact.
Professor Simon Chadwick of Skema Business School explained that Saudi Arabia is using sports to improve its legitimacy and global reputation. “They’re looking for sports that are commercially immature, like cricket,” Chadwick said, referring to the country’s plans to expand into less traditional areas.
These investments align with Saudi Arabia’s strategy to boost tourism and economic activity. Ben Gordon, a sports diplomacy expert at Dentons Global Advisors, pointed out that the sponsorships aim to foster non-oil economic growth.
“The brand awareness or soft power aspect is part of the economic return because it is ultimately about boosting economic activity in – and international tourism to – the kingdom,” Gordon stated.
Key Sponsorship Highlights
Saudi Arabia’s strategy spans various sports, demonstrating the Kingdom’s diversified approach:
• Football: The PIF bought Newcastle United for £305 million in 2021, increasing its stake to 85% by summer 2022. The kingdom has also gained control of several Saudi Pro League teams, including Al-Ahli and Al-Ittihad.
• Golf: The PIF launched LIV Golf, attracting top golfers and signaling a breakaway from traditional circuits. Negotiations to merge LIV with the PGA Tour are ongoing.
• Boxing: Riyadh has hosted major events, such as the heavyweight unification bout between Oleksandr Usyk and Tyson Fury.
• Formula 1: Starting in 2021, Saudi Arabia hosted its first F1 race in Jeddah and secured a 10-year sponsorship deal with the F1 organization, which also includes supporting Aston Martin.
• Cricket: Aramco, Saudi Arabia’s state oil company, became the International Cricket Council’s naming sponsor and announced the creation of its professional cricket league. Saudi Tourism has also backed the Indian Premier League.
• Horse Racing: The Saudi Cup, with its $20 million prize, holds the record for the world’s richest horse race.
• WWE: A decade-long multi-platform agreement with WWE brings two wrestling events to the kingdom annually.
The Kingdom’s commitment to sports sponsorships reflects its broader Vision 2030 goals of creating a more sustainable and diversified economy. While the immediate outcomes remain uncertain, the long-term success of these ventures will play a critical role in determining whether Saudi Arabia can achieve its ambitious aspirations.
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