A number of sports clubs, as well as events held or due to be hosted in Saudi Arabia, are set to be impacted by the Public Investment Fund’s (PIF) newest strategy, which could see a major cut in financing. Last week, Yasir al-Rumayyan said the PIF was "reviewing its investments and deals" and "reassessing its priorities" due to reasons relating to the impact of the US-Israel war on Iran and the subsequent fallout in the Middle East, as well as economic feasibility. "The 2026-30 strategy marks a natural evolution as PIF moves from a period of rapid growth and acceleration to a new phase of sustained value creation, with a strengthened focus on maximising impact, raising the efficiency of investments, and applying the highest standards of governance, transparency and institutional excellence," the PIF said in a release last week.
The PIF, one of the largest sovereign wealth funds in the world, finances and partners with some of the world’s leading sporting events and sports teams, notably the ATP and WTA tennis tours, the LIV Golf Tour, and has been a major shareholder in the likes of Saudi Pro League teams Al-Nassr, Al-Ittihad, and Al-Hilal. So what could be likely impacted by the wealth fund’s new approach? LIV Golf, one of the world’s leading golf tournaments, is said to be the most impacted by the shakeup.
Launched in 2022 to compete with the likes of the PGA Tour, the LIV Golf now faces questions over its future after reports emerged that the PIF would be backing out from the tournament, with funding only "guaranteed" until the end of the season. The golf tournament has yet to make any official statement on the matter, but the likes of The Athletic said that members of the leadership team have already been told they will "lose their positions". It did say that 2026 season will go on as usual despite speculation over its future.
Its Mexico edition concluded on Sunday, with Spain's Jon Rahm winning the tournament amid the frenzy. The PIF has spent around $6 billion on the tournament since its launch, but has failed to generate much profit amid stiff competition. The Saudi PIF is the lead shareholder in Al-Ittihad, Al-Nassr, and Al-Hilal - some of the Saudi Pro League’s top teams with burgeoning international fanbases, due to the signing of several foreign stars, chiefly Cristiano Ronaldo.
Last week, it was announced that the PIF has sold a 70 percent stake in Al-Hilal to Kingdom Holding Company, the firm run by billionaire businessman and member of the Saudi royal family, Prince Alwaleed Bin Talal. "Al-Hilal is a national symbol and a source of pride for the Saudi people," Bin Talal said in a press release. "This acquisition expresses our deep belief in the power of sports as a unifying force and a catalyst for national development."
The move has cast a cloud on whether the Saudi clubs will go on to attract as many foreign players or foreign investments as was hoped in 2023, when the PIF announced its takeover of the teams. The PIF’s new strategy has also raised concerns about the future of English Premier League club Newcastle United, which was taken over by the wealth fund in 2021, becoming an 85 percent stakeholder. The club, however, has reportedly been informed that it will be unaffected by the new strategy, according to the BBC, and its vision and plans for the team are still on the table.
Last year, Saudi Arabia expressed hopes to host the 2035 Rugby World Cup, and was said to be putting its name forward for the bidding process. But such plans have reportedly been abandoned in light of the PIF’s new strategy announcement. Snooker could also be impacted.
The country has hosted the Saudi Snooker Masters since 2024 and the Riyadh Season Championship, but concerns have been expressed about whether the PIF will continue investing in the sport due to its lack of profitability and popularity, as well as its pivot towards more domestic projects. Other sports, such as boxing, MMA, and Formula 1, could also see themselves impacted, but outcomes largely depend on profitability and what is deemed as sustainable and in the national interest - obscuring Saudi Arabia’s initial ambitions for becoming a leading country in sports and entertainment hosting, which could now change.