In 2018 Saudi Arabia entered the global sporting spotlight, spending billions to bring top competitions to their homeland. Sidelines looks at the events, how it is all possible and the reaction from around the world.
The first-ever Formula E race in Diriyah, 2018, was primarily seen as the turning point for the future of sport in Saudi Arabia and marked their entrance into international motorsport.
Following the primary success of the Formula E for the country, an increasing number of sporting events followed, including the hosting of the Spanish Super Cup, a boxing match between Anthony Joshua and Andy Ruiz Jr, in 2019, and the introduction of the LIV Golf tournament.
This is all alongside the efforts being made by the country to make the Saudi Pro League (football) competitive, with athletes such as Cristiano Ronaldo and Sadio Mane plying their trade there.
But how has this been possible?
The Public Investment Fund
Established in 1971 to invest funds on behalf of the Saudi Arabian Government, the PIF is controlled by Crown Prince Mohammed Bin Salman, Saudi Arabia’s ruler since 2015.
The wealth of the PIF was primarily from one source. With Saudi Arabia being home to one of the largest oil reserves in the world, profits were syphoned off to fund infrastructure to diversify its economy.
Oil profits have grown significantly since the PIF first came about, and the government has slowly but surely invested in the fund, transforming it into a more ambitious financial entity.
In 2016, the PIF was restructured to not only invest within the country but also globally. This was part of a broader Vision 2030 plan.
In 2016, the PIF was restructured to not only invest within the country but also globally. This was part of a broader Vision 2030 plan.
During this turning point, wealth was gained dramatically through the transfer of stakes in state-owned enterprises like Saudi Aramco to the Public Investment Fund, and also the sale of public shares on the stock exchange.
The Vision 2030 plan is built around the diversification of the country, economically, socially, and culturally, with the aim of being less dependent on oil.
During the 2016 turning point, wealth was gained dramatically through the transfer of stakes in state-owned enterprises like Aramco to the Public Investment Fund, and also the sale of public shares on the stock exchange.
This has enabled the PIF’s significant role in Saudi Arabia’s sports revolution, funding nearly $5 billion into LIV Golf alone.
But in attempts to diversify their portfolio worldwide, they haven’t stopped at just sport. The PIF owns stakes in Uber, Nintendo, Facebook, Disney and Boeing, to name a few.
The backlash
Following the hosting of all these sporting events, Saudi Arabia has faced a host of backlash because of concerns around their treatment of women, migrant workers, restrictions on free speech and the criminalisation of dissent.
Organisations such as Amnesty International continue to condemn sports washing in the country – a term that refers to using sport to improve reputation.
“Saudi Arabia is trying to use the glamour of sport as a PR tool to distract from the country’s appalling human rights record,” Amnesty International UK said in a statement in 2019.
However, the leaders of the country do not seem overly concerned by these allegations. As reported by Reuters, Crown Prince Mohammed bin Salman said in 2022: “If sportswashing is going to increase my GDP by 1%, then we’ll continue doing sportswashing.”
The sporting deals with competitions and events from around the world has generated huge financial incentives for all involved.
The sporting deals with competitions and events from around the world has generated huge financial incentives for all involved.
For the Royal Spanish Football Federation (RFEF), holding the Spanish Super Cup Final, in Jeddah, reportedly generates significant annual revenue, a leading factor in the continuation of the agreement. The tournament is set to be held there until at least 2029.
However, this has prompted significant backlash with many fans upset due to human rights concerns, the distance to travel for supporters, and player safety. The distance between Madrid, Spain, and Riyadh, Saudi Arabia, is approximately 4,966 kilometres (3,086 miles) by air, making it very inaccessible for supporters.
But this backlash from organisations and fans hasn’t slowed down the rate by which major worldwide sporting events and even sporting stars have made the switch to Saudi.
What sports events have taken place in Saudi Arabia?
Football has been one of the sports used to enhance the country’s international standing, with a consortium led by the PIF buying a majority stake in Newcastle United and heavy investment in world-class players for the Saudi Pro League, such as Cristiano Ronaldo.
Ronaldo has been a huge advocate of the project in Saudi Arabia since joining Al Nassr in May 2023 and reportedly earning a base salary of €90 million per year for his on-field contributions.
“Step-by-step I think this league will be among the top five leagues in the world but they need time, players and infrastructure,” he said in 2023 via Reuters.
“But I believe that this country has amazing potential, they have amazing people and the league will be great in my opinion.”
The attraction of Saudi Arabian sport hasn’t stopped at football either, with LIV Golf – financially backed by the PIF – attracting high-profile golfers such as Dustin Johnson with lucrative contracts.
LIV Golf (named after the Roman numeral 54) introduced a unique format which differed from previous events, with all golfers starting at different holes simultaneously to make it a faster-paced event.
The number 54 corresponds three rounds of 18 holes, totalling 54, a number chosen as achieving this score on a par-72 course would require a player to make birdies on every hole, a feat that is considered nearly impossible. LIV golf chose this as an aspirational benchmark, symbolizing the pursuit of excellence in the sport.
In June 2023, LIV Golf, the PGA Tour, and the DP World Tour merged, with an aim to unify the sport under a new combined entity. The initial eight-event series in 2022 offered a total prize fund of $255 million, with individual event winners receiving $4 million, surpassing previous PGA winnings.
The country’s growth in sport shows no sign of slowing down, with Saudi Arabia being confirmed as the host for the 2034 World Cup. It leaves some fans asking: where will it end?
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