Saudi Arabia’s oil diversification push continues to gain significant momentum as its $700 billion sovereign wealth fund PIF and state oil company Aramco prepare to assume controlling stakes in a number of local football clubs.
The Public Investment Fund (PIF) will take control of four of the kingdom’s top soccer clubs including Al-Nassr, which Cristiano Ronaldo plays for, as the government revives a plan to privatise several state-owned sports clubs.
Saudi oil giant Aramco will own Al-Qadsiah, a football club based in the eastern city of Khobar, located near the company’s headquarters, Bloomberg reported.
The kingdom’s ambitious move aims to position itself as a global powerhouse in the sporting arena and attract substantial investment to elevate the stature of the Saudi Pro League, which has already secured global attention with the signing of illustrious players. France’s Karim Benzema, widely regarded as one of the world’s finest footballers, is reportedly poised to join Al-Ittihad following his departure from Real Madrid at the end of this season. Additionally, Cristiano Ronaldo, who joined the league this year in a widely publicised move, commands a staggering contract rumoured to be worth $200 million per annum.
Sports is one of the pillars of the government’s Vision 2030 economic diversification plan that seeks to build new industries and create jobs, which PIF is at the centre of. The privatisation plan, mainly focused on soccer clubs and launched by Saudi Crown Prince Mohammed bin Salman, allows companies and development agencies to invest in and take over clubs, SPA reported earlier on Monday.