A Winning Formula: Saudi Arabia’s Sport Strategy, Sport Investment, Sport Industry and Perceptions of its Involvement in the Global Sport’s Sector
Date
2023-12-04
Authors
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Publisher
Loughborough University
Abstract
In recent years, the investment and development of sports within the Kingdom of Saudi
Arabia has seen a remarkable uptick in intensity, focus, and urgency. A country at the heart
of the Gulf, Arab, and Islamic world, the Kingdom has also entered the global sports market
with its full weight. Ever since the government released the 2020 Quality of Life Program,
the attention the sport sector has received has been unrivalled internationally in terms of
government involvement and support. The Ministry of Sport in Saudi Arabia has been
investing into the sport sector by providing billion-dollar investments into the multiple
sporting federations within the kingdom, athlete support and development programs, athletics
events such as the Arab and Saudi games. Football in the Kingdom is also very popular
among the population and The Saudi Pro League has also seen billion-dollar investments and
unparalleled support signing the world’s best players form Cristiano Ronaldo, Benzema, to
Neymar. Reports suggest that the Saudi Pro League also known as ROSHN Saudi League
(RSL) has received a budget of over $17 billon dollar up until 2030 to achieve its goal of
becoming one of the top 5 leagues in the world. The Ministry of Sport has also been hosting
many sporting events including Motorsports such as Formula 1 with the Jeddah Grand Prix,
The Dakkar Rally, Diriyah Formula E Grand Prix, and Extreme E. Sporting events include
boxing mega events as well with the nation hosting global boxing superstar such as Anthony
Joshua, Tyson Fury, Jake Paul among others. The Public Investment Fund of Saudi Arabia
has also recently acquired the PGA giving it control over Golf Internationally, is in talks with
ATP over a possible investment takeover, and also owns 5 Football clubs including
Newcastle United a Premier League club, Al-Nassr, Al-Hilal, Al-Ahli, and Al-Ittihad with
plans of buying even more clubs in Europe. The PIF also own SRJ Sports Investments an
investment arm tasked with developing IP rights, sport fan experiences, and Sport
Broadcasting in the Gulf and North Africa region and have also invested in the Pro Fighters
League (PFL) the UFC’s most important direct competitor. However, the academic research
on Saudi Arabia’s sports investments, sport industry and involvement in global sports, is
relatively limited perhaps because it is a recent phenomenon. Limited studies exist on the
motivations and strategies driving Saudi Arabia's increased investment in sport both locally
and internationally, hindering a comprehensive understanding of their goals and potential
outcomes. Additionally, there is a notable gap in research studying the intersection of sports
and investments. The impact of these investments on national development, including socioeconomic benefits, job creation, infrastructure improvements, public health promotion, and
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international relations are evident yet remain largely unexamined. Additionally, the influence
of global perceptions on Saudi’s investment and aim to be a key international player in global
sport has not been thoroughly explored. Further research is needed to address these gaps.
Description
This research paper aims to investigate the scope and impact of Saudi investment in sport, with a focus on understanding the motivations, strategies of such investments, and the effect of perceptions on Saudi involvement in sport.
Keywords
Sports, Sports Investment, Saudi Arabia, Sports Strategy, Sports Washing, Leadership, Sport Tourism, Soft Power, Investment, Sovereign Wealth Fund, Public Investment Fund, Perceptions