Saudi Arabia announces six additional sports clubs for privatization
Saudi Arabia has embarked on a new phase in its ambitious Sports Clubs Investment and Privatization Project, which aims to privatize an additional 14 sports clubs. This initiative, launched by Crown Prince Mohammed bin Salman in June of last year, is a collaborative effort between the Ministry of Sport and the National Privatization Center. The project’s goal is to accelerate the development of the Kingdom’s sports industry by involving the private sector in club ownership and operations.
Starting in August, six more clubs will be available for privatization: Al-Zulfi, Al-Nahda, Al-Okhdood, Al-Ansar, Al-Orouba, and Al-Kholoud. These clubs were chosen based on their operational readiness, financial stability, administrative capabilities, and athletic facilities. Additionally, eight more clubs—Al-Shoalah, Hajar, Al-Najmah, Al-Riyadh, Al-Rawdhah, Jeddah, Al-Taraji, and Al-Sahel—will be privatized at a later stage.
The project’s first phase successfully privatized four major clubs: Al-Hilal, Al-Nassr, Al-Ahli, and Al-Ittihad. Building on this success, the second phase aims to enhance the administrative and financial governance of clubs, create new investment opportunities, and improve club infrastructure. These improvements are expected to elevate the fan experience to new heights.
The Roshn Saudi League, which saw significant commercial revenue growth last season following the privatization of clubs, aims to achieve an annual total of 1.8 billion Saudi riyals ($479,819). With over 80 percent of the population engaged in football, either as players, fans, or viewers, the league’s development is enhancing the overall sport and entertainment experience in the country. This progress is encouraging clubs to invest in better facilities and stadiums.
During the 2023-24 season, several clubs, including Al-Fateh, Al-Ettifaq, Al-Taawoun, Al-Shabab, and Al-Hilal, moved into their own home stadiums with the ministry’s assistance. The Sports Clubs Investment and Privatization Project operates through two main tracks. The first allows businesses and development organizations to invest in sports teams in exchange for ownership transfer. The second track involves offering publicly owned sports clubs for privatization. Investors interested in participating can find application details and further information on the ministry’s website.
This strategic move is part of Saudi Arabia’s broader Vision 2030 initiative, which seeks to diversify the economy away from oil dependency by developing various sectors, including sports. By attracting private investment and fostering a competitive sports environment, the Kingdom aims to become a global sports hub, enhancing both its domestic sports culture and its international sports profile.
The Ministry of Sport’s statement highlights that this project is not just about privatization but also about creating sustainable sports organizations that can operate efficiently and profitably. The focus is on improving the governance, financial health, and overall capabilities of these clubs, ensuring they are well-equipped to compete at the highest levels and provide top-notch experiences for fans.
As Saudi Arabia continues to push forward with its ambitious plans, the privatization of these additional clubs marks a significant step in transforming the Kingdom’s sports landscape, promising a future where sports play a crucial role in economic diversification and societal engagement.
