Saudi Arabia still open to sport investing, insists PIF, despite drastic cutbacks
Saudi Arabia remains keen to invest in sport despite scaling back funding for high-profile projects in golf, football and tennis, says the Public Investment Fund.
PIF has retreated from bankrolling LIV Golf and extravagant spending on foreign players for the Saudi Pro League as well as giving up hosting the WTA Finals as part of a new strategic direction announced after war broke out in Iran.
PIF’s head of MENA investments, Feras Sheraiff, cited the recent joint venture between Saudi sports investment arm Surj, Live Nation and Oak View Group as an example of its continued willingness to spend, albeit more strategically.
“The model has shifted from fully government-backed subsidised events that are done for different purposes and more of a sustainable model that lives in real-world economics,” Sheraiff told the sports industry conference Leaders Week London at Stamford Bridge.
“So we’re happy to look at investments. We’re happy to look at co-investment, and I think Radia is a prime example where we found partners that were willing to put capital, but requested certain things from us that were managed through the negotiation.”
Saudi under pressure to deliver 2034 World Cup stadium
Geopolitical and economic uncertainty caused by the Middle East conflict has caused Saudi Arabia to focus on delivery of the infrastructure it will need for hosting the 2034 World Cup.
Among the most ambitious venues it has planned is the cliffside Prince Mohammed bin Salman Stadium, part of the Qiddya giga-project designed to become the country’s sports, entertainment and culture hub.
“We’re lucky enough to have a 2034 Fifa World Cup coming, so there’s a lot of pressure to deliver a world-class stadium, world-class training facilities, the infrastructure around mobility, hospitality, hotels have to be in place over the next decade,” said Qiddya director Marc Archer.
“There’s so much going on, and as you build a city, it’s not just placing sports, entertainment, arts and culture assets. It’s putting schools in place. It’s putting medical facilities in place. There’s a whole range of complicated jigsaw puzzles to put together.”