Saudi Arabia Public Investment Fund New Sports Strategy
By Prof Dr Ian Blackshaw
The Saudi Arabia Public Investment Fund (PIF) has announced its new strategy for the period 2026-2030, which may send some tremors throughout the world of sport.
The PIF will now place its emphasis on more sustainable investments after the country has recorded a major budget deficit of U$73 billion (around €61.89 billion) last year, caused by increased spending and lower oil revenues.
The PIF Governor, Yasir Al-Rumayyan, who is also chairman of Newcastle United FC (Newcastle), confirmed that they were reviewing "some deals and investments".
He also added that:
"Whether due to the war or reasons related to economic feasibility, we continuously reassess our priorities."
The new strategy comes, at a time, when the PIF has sold a 70% stake in the Saudi Pro League football club, Al-Hilal, for £276 million (around €317 million).
These remarks were also made at a time when there is increasing speculation that the PIF may withdraw its financial backing of LIV Golf. This, in turn, has also led to speculation that the PIF may be looking to reduce or end its funding in some of its other sports investments.
This position also appears to have been accelerated by the Iran war, which has caused disruption to Saudi Arabia's oil exports.
But even before the war, there was a clear indication of a shift in approach, with budgets being tightened, and the eye-watering expenditure - reputedly some US 500 billion (around €424 billion) - on the 2034 Saudi World Cup being given priority over other sports investments.
However, the Saudis insist that the sale of Al-Hilal should not be regarded as a sign of reduced interest in the PIF sporting portfolio, which continues to be a key part of the country's plans to boost tourism, diversify its economy, and improve its reputation in the rest of the world.
But what about Newcastle, in which the PIF has a majority stake? Is there any divestment there on the horizon?
PIF has stated that divesting its stake in Al-Hilal was always its intention, and the powers that be remain fully committed to Newcastle.
Time alone will tell!
Prof Dr Ian Blackshaw may be contacted by e-mail at ‘
