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For Saudi Arabia, sport is the new oil

Saudi Arabia, the world’s second largest oil producer, has gone into overdrive in recent years in its efforts to become a global player in international sports. It has spent billions of dollars on high-profile deals for an image makeover that involves reducing the country’s overdependence on oil. But detractors say the kingdom is using Sport in a desperate attempt to divert international focus from its poor human rights record.

Until recently, the country was known for its oil and as the custodian of the two holy mosques, in Makkah and Medina that draw millions of Muslims to the country each year for Hajj and Umrah. The Saudi leadership’s championing of Wahhabism, however, has been criticised as many feel it is responsible for the spread of Islamic fundamentalism in the world. Its dubious track record on human rights and women’s freedoms has often led to stringent attacks by international rights groups, but Saudi Arabia is now making efforts to project itself as a moderate Islamic power and global sports hub.

Saudi Arabia has, in recent months, gone on a buying spree. In its effort to rejuvenate domestic football, it has picked up the most sought-after football stars for its local clubs. Some of the biggest names in world football—Neymar, Cristiano Ronaldo, Karim Benzema, N’Golo Kanté, Sadio Mané, and several others—have been lured with million-dollar salaries and opulent mansions into signing up for major Saudi clubs.

MBS plays the great game

The new initiative is the brainchild of the 37-year-old Saudi Crown Prince Mohammed bin Salman, popularly known as MBS. Most people regard him as the de facto ruler of the country. The Crown Prince used his 2030 Vision document to make a case for transforming Saudi Arabia into a modern economy and regional power. He believes investment in sport will not only help diversify the economy but also attract tourists, generating employment and investment. He also believes it will keep younger generations of Saudis healthy and fit.

Other Gulf countries, too, have shown considerable interest in football and have spent generously on the sport in recent years. Love for the sport grew significantly after Qatar successfully hosted the 2022 FIFA World Cup. Qatar, UAE, and Saudi Arabia have invested heavily and bought major stakes in leading English and European clubs. The Saudi Crown Prince now wants the star performers of world football to play before a domestic audience.

Currently, Saudi Arabia is considered the biggest investor in global football. However, its first major investment in a foreign sports enterprise came in 2018 when the Saudi Sports Ministry signed a 10-year contract (worth $100 million a year) to host World Wrestling Entertainment (WWE) events. In subsequent years, the kingdom spent lavishly on other sports, too, hosting international boxing, tennis, horse racing, and Formula 1 events. Since 2020, it has also hosted the famous Dakar Rally, an off-road endurance race. Furthermore, Saudi Arabia has financed international golf competitions. It even bought a stake in a Formula 1 franchise and purchased the English football team Newcastle United F.C. in 2021.

Most of these investments have been made through Saudi Arabia’s $776 billion Public Investment Fund, considered to be one of the largest sovereign wealth funds in the world. However, its purchase of LIV Golf, an international rival of the US-based PGA Tour, golf’s foremost competitive body, drew a lot of attention in the US media and concern from its legislators. In June 2023, after the PGA Tour and LIV Golf decided to become partners, two US Senators and the Department of Justice, respectively, opened investigations into the agreement.

The post For Saudi Arabia, sport is the new oil appeared first on Universal Times Magazine.



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