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Saudi Arabia’s Sports Investment like Sport Is The New Oil

In recent years, Saudi Arabia, the world’s second-largest oil producer, has embarked on a determined quest to become a global player in the international sports arena. This massive undertaking, backed by billions of dollars in investments, aims to transform the country’s image and reduce its reliance on oil. However, critics argue that Saudi Arabia is using sports as a distraction from its poor human rights record. In this article, we delve into Saudi Arabia’s sports ventures, the role of Crown Prince Mohammed bin Salman (MBS), and the controversies surrounding this ambitious endeavor.

Saudi Arabia’s Image Makeover:

Traditionally known for its oil wealth and its role as the custodian of the two holy mosques in Makkah and Medina, Saudi Arabia has faced criticism for promoting Wahhabism, a conservative Islamic doctrine believed to fuel extremism. Concerns over human rights violations and restrictions on women’s freedoms have also drawn international scrutiny. To counter this image, Saudi Arabia is now positioning itself as a moderate Islamic power and a global sports hub.

MBS’s Vision:

Crown Prince Mohammed bin Salman, often regarded as the de facto ruler of Saudi Arabia, introduced the ambitious “2030 Vision” plan. This blueprint outlines his vision of transforming Saudi Arabia into a modern economy and a regional power. Sports investment plays a crucial role in diversifying the economy, attracting tourists, generating employment, and promoting a healthier lifestyle among the younger population.

A Gulf Trend:

Saudi Arabia is not alone in its sports investment endeavors. Neighboring Gulf countries, including Qatar and the UAE, have also poured substantial funds into football and other sports. Qatar’s successful hosting of the 2022 FIFA World Cup heightened the region’s interest in global sports. These countries have even acquired stakes in leading English and European clubs, aiming to bring top football talent to domestic audiences.

Saudi Arabia’s Sport Investment Portfolio:

The Kingdom of Saudi Arabia has made significant investments across various sports, with a particular focus on football. High-profile signings such as Neymar, Cristiano Ronaldo, and others for local clubs have garnered global attention. These investments are primarily channeled through the country’s massive $776 billion Public Investment Fund, one of the world’s largest sovereign wealth funds. Notably, Saudi Arabia’s acquisition of LIV Golf, a rival to the US-based PGA Tour, triggered investigations and concerns in the United States.

“Sportswashing” Concerns:

Saudi Arabia is not the only country facing accusations of “sportswashing,” the practice of using sports to divert attention from controversial issues. China, Russia, and Qatar have also faced similar allegations. Qatar, in particular, faced criticism leading up to its FIFA World Cup due to human rights concerns. Despite these controversies, Qatar showcased its impressive stadiums and infrastructure during the tournament.

A Multifaceted Investment Strategy:

Saudi Arabia’s investment in sports spans a wide range of activities, including esports. Estimates suggest that the kingdom has injected approximately $38 billion into the $184 billion global gaming market through its subsidiary, Savvy Games Group. The goal is to generate substantial revenue through international broadcasting of major sporting events, making Saudi Arabia a prominent player in the sports media landscape.

Saudi Crown Prince MBS’s Multifaceted Strategy: From Sports to Economic Diversification

Since assuming the role of Crown Prince in 2017, Mohammed bin Salman (MBS) has faced numerous controversies, including allegations of detaining senior figures to solidify his political power and the brutal murder of journalist Jamal Khashoggi. This article explores MBS’s endeavors in sports diplomacy, his diplomatic maneuvers with global players, and his efforts to engage the youth and diversify the Saudi economy.

Global Controversies and Diplomacy:

The Khashoggi incident, which occurred within the Saudi embassy in Turkey, sparked global outrage and calls for MBS’s accountability. Although Saudi authorities denied his involvement, MBS took moral responsibility, attributing the act to “rogue elements” within the government. The ensuing US sanctions and calls for international isolation pushed MBS to seek closer ties with China, Russia, and India through oil diplomacy. Eventually, the impact of COVID-19 lockdowns and the Ukraine conflict led to renewed communication between MBS and President Joe Biden.

Leveraging Sports Diplomacy:

MBS’s strategy extends to using sports as a means to reshape Saudi Arabia’s image and attract global attention. The kingdom aims to position itself as a host for international events. Recently, Jeddah was proposed as a venue for a US-led initiative focusing on peace in Ukraine, with the notable absence of Russia. Despite this, Saudi Arabia maintains a strong relationship with Russia, collaborating to stabilize oil prices. The Crown Prince also played a role in releasing prisoners of war from Ukraine, including UK and US veterans. In December, Chinese President Xi Jinping visited Saudi Arabia, emphasizing the kingdom’s role in regional forums.

Addressing Domestic Challenges:

Saudi Arabia boasts a youthful population, with over 63 percent below the age of 30 and 50 percent below 25. However, the country faces an 8 percent unemployment rate among its youth. To win the support of this demographic, MBS has implemented social reforms such as permitting women to drive, encouraging mixed-gender interactions, and relaxing dress codes. While these measures have portrayed him as a reformer, he is cautious not to push too rapidly on issues like marriage, education, employment, and foreign travel for girls, which still require parental consent.

Economic Diversification:

A significant challenge for MBS lies in diversifying Saudi Arabia’s economy. In 2022, the country achieved impressive economic growth, with a 4.8 percent increase in non-oil GDP, driven by private consumption and investment in infrastructure and industry. Mega projects like Neom Sez, Qiddiya entertainment city, and the Red Sea tourism project aim to create smart, green cities to attract business and investments. However, success hinges on private sector development and reduced government interference. Historically, Saudi nationals have relied on government support, but MBS’s vision requires a shift towards private sector employability, presenting a considerable challenge.

Conclusion:

Crown Prince MBS’s multifaceted approach encompasses sports diplomacy, global diplomacy, youth engagement, and economic diversification. As he navigates these challenges, the world watches closely to see how these endeavors shape Saudi Arabia’s future and its role on the international stage.

The post Saudi Arabia’s Sports Investment like Sport Is The New Oil appeared first on Gadgets Ark.



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