Saudi Arabia's Monumental Investments in Sports

In recent years, the Kingdom of Saudi Arabia has captured global attention through its ambitious initiatives and substantial investments across various domains. Among these, the entertainment and sports sector holds a prominent position within the Vision 2030 framework.

This comprehensive plan aims to elevate the Kingdom's economy, amplify its global economic contributions, and bolster its standing on the international platform. With a passionate populace deeply invested in sports, notably football, it's no wonder that the Saudi League boasts one of Asia's highest attendance rates. This article delves into Saudi Arabia's strategic approach to sports sector investment and focuses on the substantial deals that have resonated worldwide. 

Sports: From entertainment to a massive economic powerhouse! 

Sports is no longer just a means of entertainment or social activity but has become a form of investment and an integrated economy that is part of the GDP of many countries that have recognized the importance of this sector. Countries compete to host global sporting events for the benefits they bring on various levels, most notably the financial side; studies have shown that sports have generated revenues exceeding $500 billion! This undoubtedly indicates the transformation of a hobby into a giant industry. For example, sports enthusiasts spent $29 billion on buying match tickets in just one year! 

Regarding the most important motivations for Saudi Arabia’s investment in the sports sector and the benefits resulting from it, they are as follows: 

• Developing talents and capabilities: Saudi Arabia’s investment in sports, especially football, is a real opportunity to discover hidden talents and potentials in young people, where they will be developed through providing necessary training and support, reaching a global level that qualifies the Kingdom to compete for major championships. 

• Attracting foreign investments: Experiments have shown for different countries that investing in sports is an effective way to attract foreign investments, through organizing international and regional tournaments and competitions, which enhances growth in all sectors and thus creates a large number of job opportunities. 

• Upgrading infrastructure: Investments contribute to improving and developing infrastructure, not only sports-related but also including transportation lines, roads, airports, as well as service facilities, hotels, restaurants, shopping centers, and much more that directly and indirectly benefit the state as a whole, host cities and their residents in particular. 

• A great opportunity for marketing the country: Sporting events, especially those related to football, are characterized by great popularity unmatched by any other event. Millions of people follow their favorite team or national team competing in one of the world championships. This represents a real opportunity to market the name of the country and introduce it along with its culture. It also sheds light on its progress and other aspects. 

• Increasing tourism activity: If a country succeeds in hosting any of the important matches or continental or global championships, it will make the eyes turn towards it and attract tourists. 

Massive deals that propelled the Saudi League onto the global stage! 

Saudi Arabia has dominated the headlines of the world’s most famous news sites through the huge deals it has made with football stars, spending more than 600 million euros during the transfer window. This comes after the Public Investment Fund of Saudi Arabia acquired the “Big Four” in the local league; Al-Hilal, Al-Nassr, Al-Ittihad, and Al-Ahli, in addition to allocating many other clubs. We will now highlight the most prominent of these deals and their financial value: 

Cristiano Ronaldo 

We start the list of the most prominent deals in the Saudi league with the transfer of global star Cristiano Ronaldo from his club Manchester United to Al-Nassr Saudi Club for a salary of 200 million euros per year. This deal is considered the best in the history of Saudi sports and even Asia; where the Portuguese legend is considered one of the best players in the history of football, having won a large number of collective and individual titles, including 5 Ballon d'Or as the best player in the world. He is also the highest scorer in the history of the game with 844 goals for his country’s national team and clubs Manchester United, Real Madrid, Juventus, and Al-Nassr. 

• Previous club: Manchester United 

• Current club: Al-Nassr Saudi Club 

• Transfer fee: Free transfer 

• Annual salary: 200 million euros 

• Contract duration: Two years 

Kanté 

The star French player N’Golo Kanté shone with Chelsea FC and his national team that won the 2018 World Cup in Russia. He was known for his high skill, physical strength, and ability to play collectively. All this made major international clubs put him on their radar, for which Al-Ittihad Saudi Club won his services for a salary estimated at around 100 million euros per year. 

• Previous club: Chelsea FC 

• Current club: Al-Ittihad Saudi Club 

• Transfer fee: Free transfer 

• Annual salary: 50 million euros 

• Contract duration: Two years 

Neymar  

The Brazilian player is one of the deals that have proven that Saudi Arabia is moving at full speed towards bringing in some of the world’s most famous players to its clubs. The star player from Paris Saint-Germain moved to Al-Hilal Saudi Club in a deal worth 90 million euros that his club received, in addition to a salary of up to 180 million euros per year. 

• Previous club: Paris Saint-Germain FC 

• Current club: Al-Hilal Saudi Club 

• Transfer fee: 90 million euros 

• Annual salary: 100 million euros 

• Contract duration: Two years 

Benzema 

Despite being associated with Real Madrid for the long years he spent with the royal club, French star Benzema chose to move to the Saudi Pro League through the gateway of Al-Ittihad Jeddah Saudi Club, and the best player in the world in 2022 will receive a salary of about 100 million euros per year, making him one of the most expensive deals in the Saudi league. 

• Previous club: Real Madrid 

• Current club: Al-Ittihad Jeddah Saudi Club 

• Transfer fee: Free transfer 

• Annual salary: 100 million euros 

• Contract duration: Two years 

These deals have received the lion’s share of the spotlight, but the list of Saudi league deals is long, as shown below: 

Riyad Mahrez 

• Previous club: Manchester City FC 

• Current club: Al-Ahli Saudi Club 

• Transfer fee: £30 million 

• Annual salary: £42 million 

• Contract duration: Two years 

Sadio Mane 

• Previous club: Bayern Munich FC 

• Current club: Al-Nassr Saudi Club 

• Transfer fee: €37 million 

• Annual salary: €40 million 

• Contract duration: Three years 

Yassine Bounou 

• Previous club: Sevilla FC 

• Current club: Al-Hilal Saudi Club 

• Transfer fee: €21 million 

• Annual salary: €10 million 

• Contract duration: Two years 

Firmino 

• Previous club: Liverpool FC 

• Current club: Al-Ahli Saudi Club 

• Transfer fee: Free transfer 

• Annual salary: €18 million 

• Contract duration: Two years 

Ruben Neves 

• Previous club: Wolverhampton Wanderers FC 

• Current club: Al-Hilal Saudi Club 

• Transfer fee: €55 million 

• Yearly salary: €17.5 million 

• Contract duration: Two years 

Malcolm 

• Previous club: Zenit St. Petersburg FC 

• Current club: Al-Hilal Saudi Club 

• Transfer fee: €60 million 

• Annual salary: €21 million 

• Contract duration: Two years 

Sergej Milinkovic-Savic 

• Previous club: Lazio FC 

• Current club: Al-Hilal Saudi Club 

• Transfer fee: €42 million 

• Annual salary: €25 million 

• Contract duration: Two years 

Kalidou Koulibaly 

• Previous club: Chelsea FC 

• Current club: Al-Hilal Saudi Club 

• Transfer fee: €23 million 

• Annual salary: €32 million 

• Contract duration: Two years 

Marcelo Brozovic 

• Previous club: Inter Milan FC 

• Current club: Al-Nassr Saudi Club 

• Transfer fee: €1.5 million 

• Annual salary: €7.5 million 

• Contract duration: Two years 

Edward Mendy 

• Previous club: Chelsea FC 

• Current club: Al-Ahli Saudi FC 

• Transfer fee: 20 million euros 

• Annual Salary: 12 million euros 

• Contract Duration: 2 years 

Jordan Henderson 

• Previous club: Liverpool FC 

• Current club: Al-Ettifaq FC 

• Transfer fee: 14 million euros 

• Annual salary: 38.5 million euros 

• Contract duration: 2 years 

*Please note that all the figures mentioned, whether transfer fees or annual salaries are taken from official Saudi reports and major European news websites. 

Where is Saudi Arabia heading in the world of sports? 

If you asked about the station where the train of Saudi Arabia’s investments will stop, you won’t find anyone who can answer you precisely! It is moving at full speed in various economic sectors, especially in the fields of technology, innovation, entertainment, and sports. For example, the ambitious strategy of the Kingdom aims to elevate the Saudi football league to the ranks of the best leagues in the world and enter the top ten clubs. In addition, it aims to achieve revenues exceeding 1.8 billion Saudi riyals ($480 million) annually and raise the market value of the Saudi professional league from 3 billion Saudi riyals ($800 million) to more than 8 billion Saudi riyals ($2.1 billion) 

Football is by far Saudi Arabia’s most popular sport and the argument is commonly made that by seeing newly imported stars up close in the Pro League, children will be inspired to participate. However, Saudi Arabia is also making significant investments in other sports such as motorsports & golf. The country aims to host major international events such as Dakar Rally and LIV Golf. Reports suggest that Saudi Arabia has made a $20 billion offer to acquire Liberty Media, the company that owns the commercial rights to Formula 1. 

The kingdom is also planning to build sports facilities such as stadiums and training academies to host major global competitions like the 2030 FIFA World Cup. These investments are part of Saudi Arabia’s marketing strategy to showcase its potential in various sectors.