PWC – Global sports survey Middle East reflections, 2023

PWC's Global Sports Survey Middle East Reflections for 2023 highlights the increasing trend of governments and institutional investors in the Middle East getting involved in the sports industry. This trend is evident in Saudi Arabia, where the Public Investment Fund (PIF) purchased a stake in the English soccer club Newcastle United in 2021. Additionally, the PIF's announcement of the Clubs Investment and Privatization Project will soon result in the transfer of ownership of four major Saudi Premier League clubs, which will greatly impact the region's sports industry. These institutional investments go beyond monetary returns and aim to enhance the prestige and reputation of the Middle East. For example, the ADQ sovereign wealth fund's ownership of Etihad Airways, the main sponsor of Manchester City, has helped promote Abu Dhabi as a global tourist and business destination. The Middle East is also investing in infrastructure and mega-projects to boost its sports industry. Saudi Arabia's Vision 2030 plan includes the Qiddiya mega-project, which will have various sports facilities including a Formula 1-grade motor racing circuit. Other regions such as Diriyah, Al Ula, and Neom are also leveraging their international events and growing health awareness to attract sports-related activities. The survey also highlights that sports clubs and federations in the Middle East are starting to operate more like businesses, seeking multiple sources of revenue through subsidiary companies. The national transformation programs like Vision 2030 create significant investment opportunities for both the public and private sectors. However, it is important for public and private sector funds to align their interests to mitigate potential risks.