Saudi Sports Clubs Investment and Privatization
The Saudi Sports Clubs Investment and Privatization is the project launched by the Crown Prince and Prime Minister, His Royal Highness Prince Mohammed Bin Salman Bin Abdulaziz Al Saud on June 5, 2023. The project aims to invest in and privatize sports clubs in the Kingdom of Saudi Arabia, encourage and empower the private sector to contribute to the development of the sports sector, and enhance the performance of national teams, sports clubs, and practitioners across all fields.
Previously, sports clubs in Saudi Arabia were subject to the state's ownership, and the Ministry of Sport was responsible for overseeing them and providing conditional governmental support according to the Sports Club Support Strategy.
The project follows the completion of the executive procedures for the first phase, which comprised two tracks: approving investments by major companies and development entities in sports clubs in exchange for transferring club ownership to them, and offering a number of sports clubs for privatization starting in the fourth quarter of 2023.
Objectives of sports clubs investment and privatization
The Sports Clubs Investment and Privatization Project aims to create high-quality opportunities and an attractive investment environment in the sports sector to achieve a sustainable sports economy, enhance professionalism and administrative and financial governance in sports clubs, and improve club performance and infrastructure to provide the best possible services to sports fans, thereby enhancing the fan experience.
The overarching goal of transferring and privatizing clubs is to achieve qualitative leaps in various sports in Saudi Arabia by 2030 to produce an exceptional generation of athletes on both regional and global levels. This is in addition to developing the football game and its competitions specifically to place the Saudi league among the world's top ten leagues, increase the annual revenues of the Saudi Professional League Association from SAR450 million to over SAR1.8 billion, and raise the market value of the Saudi Pro League from SAR3 billion to over SAR8 billion.
The first phase
The first phase of sports clubs' privatization has commenced with transferring ownership of four clubs to national companies. The ownership of Al-Qadsiah Club has been transferred to Saudi Aramco; Ad-Dir'iyyah Club to Diriyah Gate Development Authority; Al-Ula Club to the Royal Commission for AlUla; and the Falcons Club to NEOM Company.
In addition, the Public Investment Fund also invested in four Saudi clubs by converting them into companies owned by the fund and a non-profit foundation for each club. The clubs are the following: Al-Ittihad Club, Al-Ahli Saudi Club, Al-Nassr Club, and Al-Hilal Club.
The second phase
On July 2, 2024, the Council of Ministers approved the document for the privatization of fourteen sports clubs and granted the Supervisory Committee for Privatization in the Sports Sector the authority to issue approvals for the privatization of sports clubs in the following divisions: Professional, First, Second, Third, and Fourth. The second phase of the second track in the project for investment and privatization of sports clubs included the following clubs: Al-Zulfi, al-Nahda, Al-Okhdood, Al-Ansar, Al-Orobah, Al-Kholood, Al-Shoulla, Hajer, Al-Najma, Al-Riyadh, Al-Rawda, Jeddah, Al-Taraji, and Al-Sahel.
The third phase
On June 8, 2026, the Ministry of Sport and the National Center for Privatization announced the launch of the privatization process for five sports clubs—Abha, Al Fateh, Al-Riyadh, Al-Tai, and Al-Shoulla —as part of the Sports Clubs Investment and Privatization Project.
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Table of contents
Info Box
- Name
- Saudi Sports Clubs Investment and Privatization.
- Launch date
- 2023.
- Objective
- Improving the status of the sports in the Kingdom and stimulating the private sector to contribute to the development of the sports sector.
- The first phase of sports clubs' privatization
- transferring ownership of four sports clubs to national companies, which are al-Qadisiah Club, ad-Dir'iyyah Club, al-Ula Club, and the Falcons Club.
- The Public Investment Fund's (PIF) investment in four clubs
- al-Ittihad Club, al-Ahli Saudi Club, al-Nassr Club, and al-Hilal Club.
- Phase two
- Privatization of fourteen sports clubs.
Table of contents
Info Box
- Name
- Saudi Sports Clubs Investment and Privatization.
- Launch date
- 2023.
- Objective
- Improving the status of the sports in the Kingdom and stimulating the private sector to contribute to the development of the sports sector.
- The first phase of sports clubs' privatization
- transferring ownership of four sports clubs to national companies, which are al-Qadisiah Club, ad-Dir'iyyah Club, al-Ula Club, and the Falcons Club.
- The Public Investment Fund's (PIF) investment in four clubs
- al-Ittihad Club, al-Ahli Saudi Club, al-Nassr Club, and al-Hilal Club.
- Phase two
- Privatization of fourteen sports clubs.