Saudi Arabia has announced a major privatisation project for sports in the Kingdom.
It will see massive investment in to sports, including football.
Major sports clubs could be privatised before the end of the year.
Saudi sport investment
As part of the scheme ambitious targets have been set for the Saudi Pro League football organisation. It is hoped revenues for the emerging group will reach SR8bn ($2.1bn) by 2030 as the Kingdom wants its domestic league to be among the top 10 in the world.
Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, announced the launch of an investment and privatisation project in the Kingdom.
The project aligns with the ambitious objectives of Saudi sports within Vision 2030, emphasising the development of an efficient sports sector by encouraging and enabling the private sector to contribute to the industry’s growth.
The project comprises two primary components:
- The first entails the approval of corporations and public sector organisations investing in sports clubs, with investment amounts corresponding to each club’s value.
- The second component involves privatising sports clubs starting from the final quarter of 2023.
Three strategic objectives underpin the project: fostering investment opportunities and an appealing investment environment in the sports sector; boosting professionalism, governance, and financial sustainability in sports clubs; and enhancing clubs’ competitiveness and infrastructure.
The ultimate impact will see the provision of world-class services to sports fans, enriching the fan experience and driving community participation.
The privatisation and ownership transfer of clubs aims to accelerate progress in a variety of sports across the Kingdom further growing participation, providing cutting edge facilities, increasing competition and nurturing future champions.
The timing of the project is a further boost to the existing momentum and major uptake of sport in Saudi Arabia, with more Saudis, young and old, boys and girls playing more sport than ever before as part of more active and healthy lifestyles.
Mass participation in sport has increased from 13 per cent in 2015 to close to 50 per cent in 2022 and the number of sports federations has increased from 32 in 2015 to more than 95 in 2022, demonstrating the investment potential.
With more than 80 per cent of Saudi Arabia’s population either playing, attending or following football, the project has a major focus on the country’s national sport, which is also experiencing unprecedented growth.
The Saudi Pro League, which has players from more than 40 different countries and has seen attendances increase by nearly 150 per cent in the past year, will be supported in its ambition to be amongst the top ten leagues in the world.
Furthermore, the project aspires to raise the league’s commercial revenues from SR450m ($120m) riyals in 2022 to more than SR1.8b ($480m) annually, while generating private-sector investment opportunities and increasing the market value of the Roshn Saudi League from SR3bn ($800m) to more than SR8bn ($2.1bn) by 2030.
Saudi football achievements in the last year include the country’s participation at FIFA World Cup 2022, including memorably defeating eventual winners Argentina; Al Hilal reaching both the FIFA Club World Cup and AFC Champions League finals and the launch of a new women’s Premier League.
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