Saudi Arabia’s PIF sets up company to promote sports sector

Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), has launched a new company to accelerate the growth of the sports sector in the kingdom and across MENA region.

The new company, SRJ Sports Investments, will invest in acquiring and creating new sports events IP, commercial rights of popular and prominent sports competitions and hosting major global events in Saudi Arabia.

The investments are expected to deliver financial returns and localise partnerships domestically and in the MENA region.

#PIF today announced the establishment of SRJ Sports Investments, a sports investment company that aims to accelerate the growth of the sports sector in Saudi Arabia and MENA region. #SRJSPORTS

Read more: https://t.co/aNPpORyhKS pic.twitter.com/76Hp6PE9WN

— Public Investment Fund (@PIF_en) August 6, 2023

“We are thrilled to announce the establishment of SRJ Sports Investments Company to accelerate the growth of the sports sector in Saudi Arabia and the MENA region, by creating and investing in international sports IP, enhancing the fan experience through hosting major global events and investing in transformative technologies,” said Raid Ismail, Head of MENA Direct Investments at PIF.

“The company will complement other PIF investments in the sports sector, all of which are contributing to a more vibrant society, in line with PIF’s strategy and Saudi Vision 2030.”

SRJ Sports Investments will target businesses specialised in offering unique fan engagement activities and transformative sports technology across the industry, bolstering Saudi Arabia’s position as one of the world’s leading sports and entertainment destinations.

PIF’s sprawling portfolio

PIF said the entertainment, leisure, and sports sector is one of its 13 priority sectors for investment. Over the years, the fund has launched 87 companies while creating more than half a million direct and indirect jobs. The $700bn sovereign wealth fund has been creating companies across a wide range of industries as it takes on an increasingly assertive role in diversifying the domestic economy away from oil.

Last month, PIF launched the Saudi Tourism Investment Company (Asfar) and Al Madinah Heritage Company to advance the growth of the kingdom’s ​​tourism and date industry, respectively. PIF also set up Sawani Company earlier in July to boost the growth of Saudi Arabia’s camel farming industry and actively contribute to its sustainable development.

Saudi Arabia’s wealth fund owns stakes in tech companies such as ride-hailing firm Uber Technologies, soccer teams including English Premier League’s Newcastle United, electric carmakers Lucid and Ceer and is funding a host of new cities in the desert such as the $500bn futuristic NEOM City and the Red Sea Development Company’s mega tourism project.

Saudis boost sports sector

Meanwhile, Saudi Arabia unveiled its sports clubs investment and privatisation project, as part of the Gulf state’s ambitious Vision 2030 reform programme that seeks to diversify the economy away from heavy reliance on oil revenues.

The launch of the sports clubs’ privatisation plan earlier in June comes as the kingdom has flexed its financial might in recent weeks by luring some of the best players from European clubs with lucrative contracts, including Ballon d’Or winner Karim Benzema, Sadio Mane, N’Golo Kante, Jordan Henderson and Liverpool great Steven Gerrard who has joined Al-Ettifaq as head coach.

Cristiano Ronaldo joined Saudi Arabian club Al Nassr on a $75m-per-year contract last year. The Saudi league hopes to raise the profile of soccer in the country.

Read: Saudi Arabia kicks off sports clubs privatisation project