Business and Investment

Restructuring Investment Opportunities in The Saudi Sports Industry

Published

11 months ago

22nd January 2024

Huda

In an effort to restructuring investment opportunities, His RH Prince Mohammed bin Salman launched a project to privatise Saudi sports teams.

His Royal Highness Prince Mohammed bin Salman started an initiative to privatise Saudi Arabian sports teams to restructure investment opportunities.

The Ministry of Sports has disclosed the project’s details. The project comprises transferring the ownership of Al-Ittihad, Al-Ahly, Al-Nasr, and Al-Hilal clubs and converting them into companies, in addition to selecting which other clubs to offer for investment in the private sector.

The First Track: To Invest in Clubs through PIF

Under the first track plan, the Public Investment Fund will invest in Al-Hilal, Al-Nasr, Al-Ittihad, and Al-Ahly clubs. The Fund will own 75% of the clubs, with the remaining 25% going to non-profit organisations.

This change to restructure investment opportunities aims to increase investment and boost its future worth.

The Second Track: Local and International Investment Opportunities

Furthermore, the project provides opportunities for domestic and foreign individuals who wish to invest in sports teams. From an economic and financial standpoint, this project is essential to the development of Saudi sports.

Restructuring Sports Industry Investment Prospects

The privatisation of Saudi clubs will transform the sports landscape in the Kingdom and enhance its standing internationally.

The fact that the names of the Kingdom’s clubs are widely recognised throughout the world provides a favourable environment for medium- to large-scale investments in the sports industry.

The club privatisation project has become a reality due to the vision of His Highness the Crown Prince, which has created new opportunities for sports investment.

The Kingdom’s gross domestic product surpasses one trillion dollars, making it appealing to both domestic and foreign investors, ensuring it is an ideal place to make investments.