The Saudi government has transferred ownership of four of the top football clubs in the country to its Public Investment Fund (PIF), as the league aims to attract high-profile players like Lionel Messi and Karim Benzema. The move is part of the government's efforts to diversify its economy and boost its profile globally through sports investments.
Karim Benzema, the latest prominent soccer star to shift from Europe to Saudi Arabia, is reportedly close to signing with Al Ittihad. The PIF-owned club is said to be in advanced talks with the Real Madrid striker, who would join other big names like Radamel Falcao and Aleksandar Prijovic in the league.
The PIF's interest in football has been growing in recent years, with the fund investing in clubs and competitions around the world. The fund also owns stakes in major European teams like Manchester City and AC Milan.
The PIF's US subsidiary is now hiring top talent from Wall Street and hedge funds to manage its $730 billion portfolio. The subsidiary plans to invest heavily in technology and healthcare, as well as traditional industries like energy and real estate.
Lucid Group, an electric vehicle maker backed by the PIF, is planning to raise $3 billion through a stock offering. Two-thirds of the funds will come from Saudi Arabia's sovereign wealth fund, which owns a controlling stake in the company.
The PIF has also increased its stake in video game publisher EA, according to reports. The fund's controversial investments in companies like Uber and WeWork have raised concerns about the kingdom's human rights record and its impact on global business.
In golf, the PIF-backed LIV Golf has merged with the PGA Tour, creating a new global golf league. The league aims to attract the sport's biggest stars with huge paydays, funded by the Saudi government.
The PIF's sports investments are part of a broader strategy to diversify the Saudi economy away from oil and into new industries. The fund has been investing heavily in tech startups, real estate, and infrastructure projects in recent years.
Critics of the PIF's investments have raised concerns about the kingdom's human rights record and its role in the global economy. The fund has faced backlash over allegations of human rights abuses, including the murder of journalist Jamal Khashoggi.
Overall, the PIF's takeover of four domestic football teams is the latest move in the fund's growing sports investments. The league's pursuit of high-profile players like Lionel Messi and Karim Benzema reflects the kingdom's ambitions to become a major player in global sports. However, the PIF's investments have also raised concerns about the kingdom's human rights record and its impact on global business.
