Saudi Arabia to launch massive sports investment group: Report
Saudi Arabia plans to launch a multibillion dollar sports investment company after expanding its position in golf and football and massive investments in adventure travel and entertainment.
The sports group will be part of the kingdom's $650bn sovereign wealth fund, according to the Financial Times.
The Public Investment Fund (PIF) is chaired by Crown Prince Mohammed bin Salman and is the main vehicle for the diversification of Saudi Arabia's economy away from its reliance on oil revenue.
The PGA Tour and LIV Golf, which is backed by the PIF, shocked the world of sports in June when they announced a partnership that ended a blistering legal dispute between them.
The deal is facing pushback with the US Department of Justice announcing an investigation into the planned partnership. But it was just the latest in Saudi Arabia's blitz into the western sports world.
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In 2021, the sovereign wealth fund bought English football club Newcastle United. Saudi Arabia has hosted some F1 grande prix racing competitions and is boosting its domestic football scene by pinching aging stars like Cristiano Ronaldo with lucrative contracts.
Ronaldo's move to Riyadh club Al-Nassr was immediately felt: the club's Instagram following jumped from under one million to almost 15 million after the deal. And broadcast rights to the Saudi league have reportedly been sold to 36 overseas territories.
Critics have accused Saudi Arabia of investing in sports and entertainment to gloss over its poor human rights record. But the push is part of a wider effort to reshape Saudi Arabia's economy and relax conservative social codes.
Other Muslim footballers, such as Manchester City's Riyad Mahrez, Chelsea's Hakim Ziyech and Sevilla's Yassine Bounou have also been linked to moves to the kingdom.
Saudi Arabia pinches rich tourists
Besides offering an alternative for young Saudis to vacation at home and spend their money inside the kingdom, Saudi Arabia is banking on entertainment and sports to help pinch high-spending western travelers as it tries to compete with established Middle East vacation spots.
In October, the Jeddah Yacht Club began offering cut-rate prices to sailing YouTubers willing to stop at its new state of the art marina, sources told MEE.
MEE reported that western sailors have been ditching Egypt's Red Sea coast for Saudi Arabia.
Advertisements on the website of Neom, a futuristic $500bn megacity being built by the PIF, advertise activities like kayaking, kite surfing and sailing as it bills itself as a winter alternative to the Mediterranean.
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