8 sports clubs become firms owned by development bodies

The Ministry of Sports announced the clubs included in the first track of the sports clubs investment and privatization project.

Al Ittihad, Al Ahli, Al Nassr, and Al Hilal, are transformed into companies, each of which is owned by the fund and non-profit foundations for each club.

The fund is working with the sports ministry to finalize all paperwork required to complete the transformation of these clubs into four independent firms with a non-profit foundation for each club.

The PIF will own 75% of each club, while their respective non-profit foundations will hold 25% ownership of each club.

The transformation of the four clubs will unleash various commercial opportunities, including investment, partnership and sponsorships across numerous sports. It will raise the private sector’s contribution to the Saudi gross domestic product, and boost local content on the local, regional and global levels.

The first track also includes the transformation of four clubs to development bodies. The ownership of Al-Qadisiyah Club will be transferred to Saudi Aramco, AlUla Club will be transferred to Royal Commission for AlUla, Diriyah Club to Diriyah Gate Development Authority, and Saudi Falcon Club to NEOM. 

Crown Prince Mohammed bin Salman launched the investment and privatization project for sports clubs upon completing the implementing procedures of the first stage, Argaam reported.

The project has two main tracks. The first is to approve the investment of major corporations and public sector organizations in sports clubs in exchange for transferring clubs' ownership to them, and the second is to offer a number of the sports clubs for privatization starting from Q4 2023.