Saudi Arabia’s nation-branding strategy and economic diversification efforts have had wide-ranging effects, including on the sports scene both at home and globally. Recently, these activities have centered around major changes in the world of golf and big moves in football, or soccer. Saudi Arabia’s investment in golf, a sport that is not widely followed or played in the kingdom, has been under close scrutiny since even before the surprising merger of Saudi-backed LIV Golf with the PGA Tour and DP World Tour. There has been no shortage of media coverage and hot takes online, including on the usual topic of “sportswashing.” The other big story related to football, however, deserves a more nuanced examination to understand its multiple dimensions.

The popularity of and prospects for football in the kingdom have contributed to a real state-led commitment, with Saudi leaders aiming to transform the Saudi Pro League into a lucrative and competitive one – top 10 in the world is the official goal. To reach this target, on June 5 Crown Prince Mohammed bin Salman announced an initiative to privatize local football clubs, hitherto under the control of the Ministry of Sports. The announcement also included the transfer of four clubs to the Public Investment Fund. Three of these (Al-Hilal, Al-Nassr, and Al-Ittihad) finished at the top of the Saudi league last season, while the last (Al-Ahli) was recently promoted for the 2023-24 season. This privatization and investment initiative, and the central role of the Public Investment Fund, reflect the wider efforts under way in the kingdom to restructure the economy. Privatization is one of the core objectives of Vision 2030 and has already included sectors such as education, health care, and transportation. While the Public Investment Fund is still government owned, privatization plans aim to outsource the management of different sectors that were once dependent on government funding in order to lessen the dependency on oil. The move also aims to motivate and attract interest in investing in the sports scene from both domestic and global sponsors.

Unlike the smaller Gulf states, Saudi Arabia’s football aspirations are at an advantage due to the sport’s wide popularity and significant viewership among a relatively big and growing population of viewers. Thus, Saudi Arabia hopes that its investment in domestic football may become another source of non-oil revenue, by attracting regional and global investment, and job creation for the young population, though many jobs might be seasonal or temporary. At the same time, football can serve as an arena for the social opening of the country. The boost for the Saudi league and fan base started in late 2022 when Portuguese football star Cristiano Ronaldo signed a record-breaking contract with Riyadh’s Al-Nassr Football Club. In early June, Real Madrid’s Karim Benzema joined Al-Ittihad in Jeddah, followed by Chelsea’s N’Golo Kante. As a result, the two biggest markets in the kingdom now each have at least one superstar. More international players are expected to join during the transfer window this summer, notwithstanding the disappointment of missing out on Lionel Messi, who instead agreed to a deal with Inter Miami in the United States.

Football’s potential and resonance in Saudi Arabia, and the wider region, were on display during the 2022 World Cup in Qatar. During the tournament, there was one of the biggest upsets in history when the Saudi national team beat the heavy favorite – and eventual champion – Argentina in their opening match. The Saudi players, all of whom play in the domestic Saudi league, scored a victory that was widely celebrated in the kingdom and across the Arab world. The support Saudi Arabia enjoyed during the World Cup demonstrated the far-reaching influence of football, which has the power to strengthen national pride at home and increase soft power abroad. This effect was also demonstrated later in the tournament when football fans across the region supported Morocco on its way to a historic semifinal.

Saudi Arabia’s investments in sports, especially football clubs, are helping to forward a key goal of Vision 2030 – fostering nationalism, which has been on the rise across the Gulf region. While Gulf involvement in football is often reduced to claims of sportswashing, this fails to recognize the facility of the sport in also advancing governments’ domestic interests. Because of Saudi Arabia’s size and its well-established domestic league, it is trying to capitalize on big-name signings and utilize the sport to pursue domestic economic and social goals. While the Public Investment Fund will have to pour large buckets of cash into these clubs to be able to afford to attract and retain these football superstars, Saudi leaders are hoping they will help to increase local, regional, and global interest to generate investment and sponsorship deals so they will eventually see a return on their investments. Nonetheless, the recent developments, including the Public Investment Fund’s investment in the local league and clubs, confirm Saudi Arabia’s increasing interest in turning sports into a cornerstone of the kingdom’s transformation agenda.

Saudi Arabia’s interest in hosting major international football events is also helping to develop the sport’s infrastructure in the kingdom, while adding more milestones to the country’s sports portfolio. Saudi Arabia signed an agreement in 2019 to host the Spanish Super Cup for three years, which was later extended until 2029. The Spanish league is widely followed in Saudi Arabia, and hosting this annual event can promote tourism – to and within the kingdom – in addition to providing entertainment options and generating revenue. Similarly, Saudi Arabia has bid to host the 2026 AFC Women’s Asian Cup and will be the host of the 2027 AFC Asian Cup. In 2022, Saudi Arabia submitted a bid alongside Egypt and Greece to host the World Cup in 2030. While hosting such events is a critical component of Saudi Arabia’s international soft-power strategy, these events are also an important part of the kingdom’s domestic social and economic reform initiatives.

Seen through the external lens, international football has long played a central role in both nation-branding efforts and investment opportunities in the Gulf. Saudi Arabia, Qatar, and the UAE have been on a similar trajectory in their acquisition of football clubs and hosting sports events. The UAE and Qatar started the trend of ownership when Abu Dhabi bought Manchester City in 2008, and Doha acquired Paris Saint-Germain three years later. Saudi Arabia joined the club belatedly when the Public Investment Fund took over Newcastle United in 2021. At the time, the club was at the bottom of the English Premier League, at risk of relegation. Since then, Newcastle has progressed rapidly and finished fourth in the league in May, qualifying for the UEFA Champions League for the first time in 20 years.

Growing competition in the Gulf, especially between Saudi Arabia, the UAE, and Qatar, is not new or confined to sports. All three states have been pursuing similar plans to make themselves regional hubs for culture, tourism, transportation, and business. However, football is likely to play an even more prominent role in the future. A potential Qatari acquisition of Manchester United would bring a new dynamic to the Premier League. At the same time, teams backed by each of the three Gulf states will for the first time compete together in the Champions League. No doubt, Manchester City’s victory in the final June 10 was not only celebrated in the UAE but was felt across the region.

For the large football fan base in Saudi Arabia, seeing Newcastle join the elite next season will be welcome news to many. Having a “Saudi” team in the Champions League will likely increase the popularity of an already widely viewed competition, while contributing to strengthened nationalist sentiment in line with the kingdom’s transformation agenda. Combined with the recent developments in the domestic league, Saudi football fans will have a busy season ahead, both at home and abroad.