Project Overview
With the aim of building an effective and distinguished sports sector and enabling the private sector to participate and contribute to this development, His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister launched the investment and privatization project for sports clubs. This aims to achieve qualitative leaps for the Kingdom's sports sector, in line with the objectives of Saudi Vision 2030.
The project includes two main tracks: the first is for major companies and development entities to invest in sports clubs, in return for transferring ownership of the clubs to them. The second track is offering a number of sports clubs for privatization, where the council of ministers approved on Tuesday, July 2, 2024, pursuant to its Resolution No. (1037) the document of the privatization project for (14) sports clubs. The Council of ministers granted the Supervisory Committee for Privatization in the Sports Sector the authority to issue approvals for the privatization of sports clubs from the following divisions: (professionals, first, second, third, and fourth).
- Supporting the economic and social goals of Saudi Vision 2030.
- Enhancing cooperation between the Saudi sports sector and various local and international investment entities.
- Developing the professionalism of clubs, including improving governance factors and fan experience.
- Providing clubs with suitable business opportunities through private sector investment and ownership.
- Enabling club owners to activate community participation.
PRIVATIZATION PROCEDURES SUPPORT THE ECONOMIC AND SOCIAL GOALS OF SAUDI VISION 2030, ESPECIALLY:
- Economic Growth and Diversification (Privatization Program): It is expected that private sector ownership and investment will improve club operations and governance, which will increase the competitiveness of these clubs, growing revenues, reducing the cost base, and ultimately building a sustainable future that elevates the sports system in the long term.
- Providing a Vibrant and Healthy Life (Quality of Life Program): Private sector investment is expected to enhance the role of sports clubs in the community, raise the level of fan and public participation in clubs, increase sports participation, and support Saudi sports talents.
- Future growth of sector value.
- Support and development programs.
- Unexploited commercial opportunities within clubs.
- Community participation.
