Saudi Arabia's Public Investment Fund expands its investment in the local sports sector
Two investment companies associated with the Public Investment Fund (PIF) signed strategic $2 billion deals with the country's four biggest football clubs. This underlines the growing importance of sport in the Saudi economy.
The government is looking to increase work within the sports sector and has an important strategy in place. In recent years, the country has made great strides, enabling it to host numerous international events. Officials are increasingly keen to invest in the sector, with a particular focus on football.
Saudi clubs have all the necessary elements for success if managed with professional marketing plans. Football aims to become an industry capable of generating significant revenues and increasing the country's gross domestic product.
Qiddiya Investment Company (QIC) has signed two landmark deals with Al-Nasr Football Club (FC) and Al-Hilal Saudi Football Club (SFC). The pact is valued at 100 million rials ($26 million) per year per club and will run from this year until 2042, with the possibility of a review every five years.
Abdullah bin Nasser Al-Daoud, board member and CEO of Qiddiya Investment, said the partnership is part of a strategic vision to "develop the sports industry in Saudi Arabia". For its part, the company says it is one of the largest deals in the Middle East that includes numerous benefits for both clubs.
Al-Nasr chairman Musli al-Muammar said the club is proud to sign this agreement. In 2019, the company unveiled its Giga Project, which aims to turn Qiddiya into the region's entertainment, sports and arts capital. This futuristic city will boast great facilities and experiences in an innovative format, located just 45 kilometres from Jeddah.
The Qiddiya Stadium will be the venue for all local and international matches of the two teams and will have a capacity of 40,000 spectators. In addition, the complex will have several VIP lounges. Construction of the stadium is scheduled to be completed by 2026.
Fans will have a completely new and unique experience as they will have access to all the facilities and venues surrounding the complex. "They will be inspired to pursue their own sporting dreams, which will boost the sports industry's contribution to the country's GDP".
The Central Jeddah Development Company, established by the Public Investment Fund in 2019, has also concluded two strategic cooperation agreements with Al-Ittihad and Al-Ahli clubs for the same period and with the same financial privileges as Qiddiya Investment.
The presidents of both clubs professed their pride after the signing of these agreements. For his part, Majed al-Nafie, head of Al-Ahli, said that the partnership "represents a quantum leap in the history of infrastructure projects for the city of Jeddah and also at the level of sports investment".
In addition to the sporting offer, visitors will be able to enjoy four other thematic areas. Parks & Attractions, Art & Culture, Movement & Mobility and Nature & Environment, along with a variety of real estate options and community services.
The Resort Core will be the area that represents the heart of the city. This district will feature numerous shops, hotels, restaurants and entertainment venues. The Six Flags amusement park and the Race Resort speedway are designed for adrenaline junkies.
Qiddiya Investment Company aims to enable Saudis to enjoy their hobbies and realise their dreams without having to leave the country. The project is also in line with the Vision 2030 programme. Promoting economic diversification, job creation and making the Kingdom one of the world's top tourist destinations are some of the government's objectives.
