Al Nassr's Jhon Duran is the second-most expensive signing in Saudi Pro League history. Reuters
Al Nassr's Jhon Duran is the second-most expensive signing in Saudi Pro League history. Reuters
Al Nassr's Jhon Duran is the second-most expensive signing in Saudi Pro League history. Reuters
Al Nassr's Jhon Duran is the second-most expensive signing in Saudi Pro League history. Reuters

Saudi spending ‘will either crush the rest of the Gulf countries, or push them to invest’: Al Wasl manager


Paul Radley
  • English
  • Arabic

Milos Milojevic says the rest of Gulf football risks being left behind by Saudi Arabia’s extraordinary spending.

The Al Wasl manager saw his side soundly beaten 4-0 by an Al Nassr team that had a forward line of Cristiano Ronaldo, Sadio Mane and Jhon Duran on Monday night.

He thinks it is still possible to compete with Saudi’s star-laden sides in the AFC Champions League, but that others need to perform at “130 per cent” of their potential to stand a chance.

“I would like to be positive and say we can compete, and I think we can,” said Milojevic, who led Wasl to the UAE double last season.

“[But to do so] we have to be on 120 or 130 per cent. It is known in football that, according to research, the team that spends the most in the top 10 leagues in Europe wins 93 per cent of the time. So over 10 years, they will win 9.3 times.

“So obviously, the investment Saudi is making in football is either going to crush the other Gulf countries, or push them to invest.

“We will see the reaction. I think everyone has the right to do whatever they can in their country, and the only thing I can control is on the pitch.

“Today, we didn’t perform good enough on the pitch, so I won’t go into those things. The quality they have in unquestionable, but I still think we could do a bit better. We need more players who are close to their max and over their max.”

Al Nassr started new record signing Jhon Duran, centre, alongside Cristiano Ronaldo for the game against Al Wasl. Getty Images
Al Nassr started new record signing Jhon Duran, centre, alongside Cristiano Ronaldo for the game against Al Wasl. Getty Images

Monday night’s game at the Al Awwal Stadium in Riyadh was a graphic illustration of the fact the Saudi sides are shopping in different markets to the everyone else in Asia.

The Nassr forward line of Duran, Mane and Ronaldo have recent pedigree of playing in Europe’s top leagues. Duran, 21, was making his debut after arriving straight from the Premier League with Aston Villa, in a deal reportedly worth nearly €77 million.

Wasl also had a new signing of their own up front. Joao Pedro is a 31-year-old who arrived during the transfer window on a short-term deal from Al Taawoun in the Saudi Pro League.

While Duran made a number of openings for his new team, Pedro scarcely made an impact. Although that was hardly his fault, seeing as the home team dominated the ball.

“It was not a game that suits him really well because his biggest quality is in the box,” Milojevic said.

“We were not producing many chances inside the box. He had two situations where he tried to finish the attack, but I am not unhappy with him.

“I don’t blame any individual player because it is not an individual sport. We didn’t do enough to get a positive result.”

Al Wasl's Soufiane Bouftini in action. Reuters
Al Wasl's Soufiane Bouftini in action. Reuters

The standings provide the most obvious evidence of Saudi’s dominance. With Al Hilal still to play their penultimate fixture of the group stage – they host Iran’s Persepolis on Tuesday night – the three Saudi clubs hold the top three positions in the Champions League’s western group.

Al Ain, the defending champions, continued their horror defence of their continental title with defeat at home to Al Rayyan on Monday night. They are last, with just two points from seven matches. Al Wasl are fifth with 11 points from their seven matches.

Ronaldo said last season that the Saudi Pro League is a match for some of the leading competitions in Europe, given the investments that have been made,

After seeing his side ease to victory against Wasl, Stefano Pioli, the manager, was asked where he thinks Nassr would rank if they played in his home league back in Italy.

“It is difficult to compare the Saudi League with Serie A,” Pioli said. “What is more important is that the team is growing all the time.”

Al Wasl coach Milos Milojevic watches on as his team are overpowered by Saudi side Al Nassr. Getty Images
Al Wasl coach Milos Milojevic watches on as his team are overpowered by Saudi side Al Nassr. Getty Images

The task facing the rest scarcely gets any easier. Wasl will complete the group phase with a home fixture against unbeaten Al Hilal, Saudi’s most dominant side, in two weeks’ time.

“We cannot be happy with the result [against Nassr] because our performance was not consistent,” Milojevic said.

“We made two big mistakes and when we had the chances to punish them, we didn’t make good decisions. If it’s a transition it has to be quick and if we are in possession, we have to keep possession.

“It is very hard because we faced a really good team. To get positive results in those types of games you have to go over the mark, do much better, and I can’t do anything but blame myself and try to fix it for the next game against Hilal.”

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Updated: February 04, 2025, 12:24 PM