Saudi Arabia is undergoing a major cultural and economic transformation with significant investments in sports, including a $776 million contract offer to Kylian Mbappé and a merger between PGA and LIV golf.

Saudi Arabia is undergoing a major cultural and economic transformation with significant investments in sports, including a $776 million contract offer to Kylian Mbappé and a merger between PGA and LIV golf.

Saudi Arabia’s Sports Investments: A Bold Move on the Global Stage

Change is clearly afoot in Saudi Arabia, and the bold moves the country has been making in the world of sports are emblematic of the soft power it seeks to acquire with its deep pockets. Spearheaded by the Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund chaired by Crown Prince Mohammed bin Salman, the country’s sports investments are part of a larger plan to transform and modernize the Saudi economy.

Back in 2016, the PIF was tasked with leading an overhaul of Saudi Arabia’s economy, aiming to shift the country away from its dependence on oil. This ambitious agenda, known as Vision 2030, sets out to wean Saudi citizens off government entitlements and attract foreign direct investment. With these efforts, Saudi Arabia is undergoing a major cultural and economic transformation.

One of the most notable sectors impacted by Saudi Arabia’s sports investments is soccer. In recent years, the country’s soccer league has made a series of high-profile signings, shaping the sport’s landscape and stirring up both excitement and resentment. But the influence of Saudi Arabian investment goes beyond soccer. The upstart golf venture LIV Golf, which emerged in 2022 with unprecedented paydays for major stars like Phil Mickelson, made waves by merging with the PGA Tour earlier this year. Additionally, a Saudi-associated investment group took over the historic club Newcastle United in 2021, causing some controversy in the UK.

These investments have not been without their critics. League officials, the press, and even some players have expressed resentment, although some have come to accept the new reality in the business of sports. Bernard Haykel, a professor of near eastern studies at Princeton University, notes that sports have a profound impact on pop culture, with athletes serving as influential figures in the commercial realm. Fans invest their energy and identities in sports, creating connections instantly and allowing for ideological manipulations that sportswashing, as it’s called, takes advantage of.

Sportswashing refers to when a country utilizes its love for sports to improve its reputation. Jules Boykoff, a professor at Pacific University, explains that sportswashing aims to erase negative perceptions and replace them with a more positive image. This strategy is precisely what Saudi Arabia embarked upon with its sports investments. For instance, the introduction of LIV Golf as a rival to the established PGA Tour effectively split the sport in two. However, the PGA Tour eventually decided to merge with LIV Golf, appointing Yasir Al-Rumayyan, the PIF’s governor, as the chairman of the combined league.

• Tupperware’s shares tripled in a week, making it a potential ...
• Officials in Ukraine are growing concerned about relying on Elon Mu...
• Apple users are frustrated with the malfunctioning parental control...

While there has been some skepticism about these sports investments and their intended audience, it is clear that Saudi Arabia is making them primarily for domestic purposes. The country is seeking to move its population away from a fundamentalist version of Islam as a source of legitimacy and identity, with a focus on fostering Saudi Arabian identity instead. Soccer, being a crucial component of the national Saudi consciousness, plays a significant role in this effort. As Haykel explains, the aim is not necessarily to appeal to a Western liberal audience or hide the country’s human rights record, acknowledging that Saudi Arabia’s human rights record is widely known and criticized.

It is worth noting that Saudi Arabia has faced international condemnation and sanctions for the murder of Washington Post journalist Jamal Khashoggi in 2018. A CIA intelligence report in 2021 implicated Crown Prince Mohammed bin Salman in the murder. However, Boykoff emphasizes that sportswashing should not be solely viewed through an international lens but also in terms of its impact on the domestic audience. The significance lies in how the investments shape perceptions and attitudes within Saudi Arabia itself.

Despite sports and entertainment representing only 1.6% of the PIF’s total investments according to its 2021 annual report, these endeavors are critical to Saudi Arabia’s rebranding efforts both domestically and globally. They demonstrate the PIF’s central role in shaping the country’s cultural transformation. By investing in sports, Saudi Arabia aims to project a more positive image and present itself as a nation undergoing significant modernization.

In conclusion, Saudi Arabia’s sports investments reveal its ambitious plans to transform its economy and redefine its image on the global stage. While these investments have attracted both excitement and skepticism, they serve as a significant driving force in the country’s efforts to shape its cultural transformation. Ultimately, sports play a crucial role in reshaping the national identity and redirecting the focus of the Saudi population, making these investments key components of Saudi Arabia’s Vision 2030 plan.