The Ministry of Sport has announced the privatization of 14 teams from various divisions as part of the second phase of the Sports Clubs Investment and Privatization Project. This initiative will make sports clubs at various levels available for privatization to both domestic and foreign investors. The first batch of clubs includes six clubs, with investors able to apply through the National Privatization Center (NCP) website starting from August 2024. The next eight clubs will have their offerings completed sequentially at a later date.
This project, approved by the Council of Ministers, aims to achieve the objectives of the Kingdom’s Vision 2030 by encouraging the business sector to participate in the growth of the sports industry. The project was launched by the Crown Prince in June of the previous year, with the goal of benefiting all teams, clubs, players, and fans. The two primary tracks used to initiate the project involved granting permission for businesses to invest in sports teams in return for ownership transfer, as well as offering sports clubs for privatization.
The announcement of the privatization of sports clubs is in line with the project’s goals of improving administrative and financial governance, creating an environment for sports investment, and enhancing the fan experience through infrastructure development. The Ministry of Sport is eager to help sports teams achieve financial sustainability and operate professionally, while also strengthening relationships with businesses. This second phase of the project will see the completion of the first batch of clubs for privatization, with other clubs to follow in the future according to the project’s strategic plans.
Investors interested in participating in the privatization of sports clubs can visit the NCP website to apply and obtain necessary information. This initiative represents a step forward in the development of the sports industry in Saudi Arabia, in line with the goals of Vision 2030. By involving domestic and foreign investors in the growth of sports clubs, the project aims to create a more dynamic and sustainable sports ecosystem that benefits all stakeholders involved.
The privatization of sports clubs in Saudi Arabia marks a significant shift in the governance and operation of these institutions. By allowing for private investment in sports teams, the project aims to improve the overall quality and professionalism of sports clubs in the country. With the completion of the first phase of the track and the upcoming privatization of additional clubs, the Ministry of Sport is taking concrete steps towards achieving the objectives set out in Vision 2030.
As the second phase of the Sports Clubs Investment and Privatization Project unfolds, Saudi Arabia is poised to attract both domestic and foreign investors to the sports industry. By offering the opportunity to privatize sports clubs, the Ministry of Sport is demonstrating its commitment to creating a thriving sports ecosystem that benefits all stakeholders. This initiative aligns with the broader goals of Vision 2030, which seeks to diversify the economy and promote sustainable growth across all sectors. With the successful privatization of sports clubs, Saudi Arabia is positioning itself as a leader in the regional sports industry.
