Saudi Arabia has spent the first half of 2026 culling sports investments - but experts say this is a strategic reset and not the start of a full-scale retreat.
The Public Investment Fund (PIF) most notably ended its support for LIV Golf, having ploughed in excess of $5 billion into the failed breakaway league.
Extravagant plans to build a ski resort at Trojena for the 2029 Asian Winter Games were shelved, the Saudi Masters snooker abandoned, and an option to renew the WTA Finals discarded among a raft of cost-cutting measures. Reports also suggest they are looking to dilute their 85 per cent majority stake in Premier League Newcastle United.
Last month, the PIF announced it had sold its 70 per cent holding in Saudi Pro League Al Hilal and published its 2026-2030 investment strategy. The five-year plan was described by PIF governor Yasir Al Rumayyan as “a natural next step in PIF’s growth journey” but made no direct mention of sport.
Saudi Arabia has started planning for the world's largest sporting event - the World Cup in 2034 - a costly endeavour even for the kingdom, and the project comes at a time of budgetary pressures exacerbated by the Iran war. Their World Cup vision includes 11 new stadiums, renovating four more, and establishing the many layers of infrastructure required to support them.
Professor Simon Chadwick, a leading sports economist and former member of the Qatar 2022 Supreme Committee for Delivery and Legacy, believes landing the tournament and a growing determination to see tangible returns are the key reasons for the PIF's decision to tighten its belt in the sector.
“[From 2025] there was an air of fiscal stringency across Saudi sport because they perceive the World Cup is pivotal in terms of driving their big sporting project forwards,” he told The National.
“Not just the image, the reputation and having to stage the matches, but the roads, rail, airports, airline network, hotels, shopping malls and all the rest of it. It's a big undertaking. As I understand it, the strategic exercise around the World Cup is continuing and they will appoint an organising committee later this year.
“It's hugely important for lots of reasons, and it has forced them to think about spending priorities. When you know that the eyes of the world are going to be on you in 2034, you've got to successfully deliver a tournament, then why would you, for example, keep LIV Golf that's not making any money?”
National goals take priority
Chadwick says a sense of perspective is required amid talk of the Saudi sports bubble bursting, pointing out that under Vision 2030 – the master plan to modernise society and diversify the economy – sport is a “bit-part player” anticipated to eventually contribute three per cent to GDP.
He says PIF strategy – and that of its sports investment arm Surj – must be separated from the kingdom's national goals as shaped by the Ministry of Sport, and even the Ministry of Health, with public well-being also a factor. That the fund's decision to dump a few bad investments is not a precursor to those broader goals also being sacrificed.
“It's just one organisation releasing a strategy document,” Chadwick said of the PIF's new five-year plan. “It's not the sum total of Saudi sport. It's a bit like the UK Treasury making a statement about English football and then everyone saying, 'Oh well, that's English football finished'.
“And then you obviously have a series of giga-projects being built … which is independent of what the Ministry of Sport and PIF are doing. So, it's not like a house of cards where Surj makes a decision about LIV Golf and everything else crumbles.”
Chadwick feels Saudi sport is entering a third phase of development. The first, between 2015 and 2021 was characterised by “opportunism without a plan” before the creation of Surj and a defined strategy of “investing in commercially mature assets with a global footprint”.
The onset of this third phase is a case of, “It's OK buying assets and saying you have a vision but now it's time to make money … and the driver of this in so many ways is [Crown Prince] Mohammed bin Salman. People say this guy is very stringent and very target orientated. If you don't hit that target, you're gone.”
Qiddiya – the new home of Saudi sport
Where the giga-projects and sport truly intersect is at Qiddiya City. Billed as “three times the size of Paris”, the site, 45 kilometres south-west of downtown Riyadh, will be the kingdom's new $40 billion sports and entertainment hub.
A new national tennis centre will make it the home of Saudi tennis. The sport remains important despite relinquishing hosting duties for the ATP Next Gen and WTA Finals. An ATP Masters 1000 will arrive in 2028.
It's also the location of a new F1 track. Saudi Arabia has a 10-year contract with F1 up to 2030, while Aramco is a global partner and title sponsor of Aston Martin. Also on the way is the Group 1 $20 million Saudi Cup with new racing and equine facilities on site.
Then there's the Prince Mohammed bin Salman Stadium, a key 2034 World Cup venue and the future home of SPL giants Al Hilal and Al Nassr. And that's not to mention an entire neighbourhood dedicated to Esports, a Nick Faldo-designed golf course, Mercedes-AMG World, Six Flags amusement park and Aquarabia, the Middle East's biggest water park.
“It is about creating an industrial sector,” said Chadwick. “The way I see this is if you had a blank piece of paper, how would you create a sports industry? Maybe you would bid for some events and maybe you would have some grass roots and somewhere they meet in the middle … you're addressing not just economic and industrial needs, you're addressing sociocultural needs as well.”
Abdullah Nasser Al Dawood, Managing Director of Qiddiya Investment Company, speaking on Fi Al Soura on Saudi TV, said Qiddiya could make a SAR 44 billion contribution to GDP and help create 85,000 jobs by 2030.
"We engaged over 20,000 individuals to understand their needs, revealing an overwhelming desire for high-quality recreational outlets and family activities," he said. "Qiddiya was created in response to people's needs. His Royal Highness further directed us to not merely meet these needs, but to import the best global practices, infuse them with a unique Saudi touch, and create a Saudi landmark for the world.
He added: "We are not just building a city, we are creating a national landmark that will inspire and uplift for generations to come, fostering opportunities and experiences unparalleled anywhere in the world."
'LIV Golf wasn't even an investment'
The demise of LIV Golf made global headlines after losing its four-year battle with the PGA and DP World Tours. Despite spending vast sums to lure star players such as Jon Rahm and Bryson DeChambeau, the disrupter competition has failed to establish any meaningful market share.
The PIF will withdraw funding at the end of the 2026 season with it showing little chance of reaching profitability any time soon. Despite it resembling a financial black hole, Chadwick believes LIV yielded results in other forms, including political capital.
US President Donald Trump has hosted LIV Golf at his properties – including last week in Virginia – and in the past has advocated for a merger between LIV and the PGA Tour.
Affinity Partners, the firm of Trump's son-in-law Jared Kushner has, according to the New York Times, received billions in PIF investment, and in 2025 Affinity joined the PIF in a consortium to purchase the gaming giant Electronic Arts in a $55 billion leveraged buyout, the largest ever deal of its type. The EA deal is at the heart of Saudi Arabia's plans to dominate the gaming and Esports market.
Chadwick also suggests LIV was given special status as a passion project of PIF governor Al Rumayyan, who is widely known to be a golf obsessive. Al Rumayyan remains “politically important” and is a popular figure in the kingdom where he is lauded as a home-grown success story.
“[LIV Golf] didn't make money because it wasn't an investment in the first place,” said Chadwick. “This series was conceived during Trump's first presidential office. I think that golf was a diplomatic outcome of this strengthening relationship between Mohammed bin Salman and Trump … and in some ways, you might argue that's just kind of the traditional role that golf has always played, when men get on golf courses, they cut deals.”
Future of the Pro League and Newcastle
The PIF's acquisition of Premier League Newcastle United in 2021 got the world's attention. The subsequent takeover of the domestic Pro League's top four and a lavish recruitment drive dominated the agenda for months.
The SPL reached its modern peak on Thursday night when Al Nassr, led by Cristiano Ronaldo, beat Damac to clinch the title having narrowly held off the challenge of bitter rivals Al Hilal.
However, that came against the backdrop of Hilal's sale and a slow down in transfer business. Consortiums are also said to be interested in both Al Ittihad and Al Nassr, with the PIF exploring ways to reduce direct control and attract private capital.
There was a time in 2023 when it seemed SPL clubs could overpower their European counterparts in the market, although that initial frenzy has since given way to more modest spending and an intent to recruit emerging talent, as opposed to the household names who arrived in that initial gold rush.
The league announced its 'PACE strategy' last week, detailing plans for a new four-year allocation model designed to “strengthen competitiveness, sustainability and long-term club development”. The language is in keeping with the prevailing mood, and while the accompanying press release highlighted glitzy captures like Joao Felix, Theo Hernandez and Mateo Retegui, it might have mentioned several other illuminating transfers.
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Al Nassr's Cristiano Ronaldo was seconds away from winning the Saudi Pro League title until a late own-goal earned Al Hilal a 1-1 draw in Riyadh. Getty Images -
Al Hilal's Ruben Neves celebrates after the late own-goal by Al Nassr goalkeeper Bento. Getty Images -
Mohamed Simakan, centre, celebrates scoring for Al Nassr. Getty Images -
Al Nassr's Cristiano Ronaldo shoots at goal. Reuters -
Hilal manager Simone Inzaghi argues with the referee. Getty Images -
Nassr defender Mohamed Simakan celebrates after scoring in the 37th minute. AFP -
Al Nassr's Inigo Martinez under pressure from Karim Benzema and Malcom of Al Hilal. EPA -
Al Hilal's Sergej Milinkovic-Savic battles with Inigo Martinez of Al Nassr for possession. Getty Images -
Al Nassr fans display a banner at King Fahd Sports City Stadium in Riyadh. AFP -
Al Nassr's Mohamed Simakan celebrates after scoring. EPA -
The players line-up line up prior to the Saudi Pro League match between Al Nassr and Al Hilal. Getty Images
Al Hilal's €30m deal for 18-year-old Kader Meite from Rennes, or their €22m move for Fenerbahce defender Yusuf Akcicek, 20, for example. Maybe Al Ahli's €25m swoop for Valentin Atangana, 20, from Stade Reims. Perhaps the trio of players – George Ilenikhena (19), Roger Fernandes (20) and Mahamadou Doumbia (21) – who arrived at Al Ittihad for a combined €71m. They are all players the league hopes will thrive and can be sold at a profit.
As for funding, the SPL revealed that a central pot of money will be doled out to clubs based on “four pillars” – the first 22 per cent will be distributed equally while a further 22 per cent will be weighted on average league position across the previous three seasons. A further 28 per cent will be linked to television numbers and the final 28 per cent will be tied to commercial performance. It is unclear whether that centralised pot of money has decreased season on season.
Al Hilal, with their new owners, are the wild card. As, while the Kingdom Holding Company, run by Prince Alwaleed bin Talal, is still very much in the orbit of the state, they in theory have the capacity to spend more freely than their PIF-controlled rivals.
Meanwhile, former Newcastle co-owner Mehrdad Ghodousi told The National in January the PIF remains “100 per cent committed”, but rumours persist of the kingdom losing interest. On Wednesday, Reuters reported the PIF is willing to dilute its 85 per cent stake in the club to fund stadium refurbishment and training ground improvements. That might seem a logical solution to an expensive problem, but is undoubtedly a softening of their previous stance.
Esports is Savvy business
In July, one week before the Fifa World Cup concludes at MetLife Stadium in New Jersey, a very different global finals will get under way in Paris. The Esports World Cup will feature more than 2,000 professional players and 200 global clubs representing over 100 countries – $75m in prize money is up for grabs.
From the leveraged buyout of EA to stakes in Capcom and Nintendo, the kingdom is all in on Esports, with July's World Cup now its annual showpiece. This year it goes on the road for the first time having been launched in Riyadh in 2025.
The state-owned Savvy Games Group - you might have seen their logo on Al Hilal's shirts - oversees the venture, and more has reportedly been spent on Esports than all other sporting investments combined.
“They've created their own IP with the Esports World Cup,” said Chadwick. “There's also going to be, later this year, in November, the Esports Nations World Cup. So, they've got the events, they've got the IP.
“But one of the sponsors of the Esports World Cup is China's Lenovo. And Lenovo and the PIF have reached an agreement. In fact, literally within the last few months, the building has started – the biggest computer manufacturing site in the Middle East will be in Riyadh.
“So that's an ecosystem. You've got the hardware, you've got the software, you've got the events, you've got the IP. And clearly owning a golf competition overseas doesn't deliver the kind of sustainable benefits that Esports potentially will.”
Before that, Saudi Arabia will have a presence on and off the pitch at this summer's Fifa tournament in North America.
The PIF was last week announced as an official tournament partner. The brands selected to accompany the PIF logo on the signage? The Savvy Games Group and Qiddiya.
