Is Saudi Arabia’s Sports Investment Era Over?

Saudi Arabia has unquestionably left its imprint on various sports by providing financial and logistical support, transforming it into a global sports hub. Hosting world championships in several sports and securing the right to organise the 2034 FIFA World Cup, one of the biggest sporting events in the world, are examples of Saudi Arabia’s investments in the sports industry.

However, at the end of the 2025 season, the Public Investment Fund (PIF) stated that it will no longer fund the LIV Golf tournament, raising serious concerns about the future of Saudi sports investments.

Why is the Approach Different?

After a thorough analysis of investment policies, the decision to withdraw was made. The PIF reaffirmed its dedication to funding sports, but with a stronger emphasis on generating long-term, sustainable financial gains.

Numerous political and economic factors contributed to this shift, so it wasn’t entirely surprising. Due to rising government spending and falling oil earnings, the Kingdom’s fiscal deficit was over $73 billion last year. In addition, tensions in the Middle East impact the economy, especially the possible US-Israeli conflict with Iran, which requires a reordering of financial expenditures, including more defence and infrastructure spending.

In this regard, Johan Reuelak, a sports management specialist from Loughborough University, clarified that Saudi Arabia will need to make significant infrastructure expenditures to host the FIFA World Cup in 2034, necessitating a more precise reallocation of government funds.

This development has also influenced other decisions, such as postponing or rethinking the staging of some international athletic events, as well as cancelling or relocating some tournaments scheduled to take place in the Kingdom.

Read more: What Economic Impact Will the 2034 World Cup Have?

Sports Investment Priorities Have Shifted

Saudi Arabia has pulled out of some ventures, including LIV Golf, but this does not mean that sports investment has stopped. Instead, it suggests that the Kingdom’s longer-term and more important areas will receive this funding. Instead of largely depending on luring international stars with enormous pay, as was the case in recent years with big-name players like Cristiano Ronaldo, the focus now is on nurturing local talent and sports popular among Saudi youngsters.

Certain sports, like boxing, which Turki Al-Sheikh is in charge of organising significant international bouts, like those involving British boxer Anthony Joshua, continue to have substantial support. In addition to intentions to start new competitions in sports like cricket, the Kingdom has branched out into esports and organised international competitions.

Additionally, Saudi Arabia is getting ready to host the AFC Asian Cup—a significant event for the Asian continent—for the first time in its history. Modern sports infrastructure is also being developed; for example, a new Formula 1 racecourse is being built close to Riyadh, the capital. Regarding foreign investments, the Public Investment Fund (PIF) still owns a portion of Newcastle United in the English Premier League, suggesting that some long-term projects will continue despite other developments.

In summary, Saudi Arabia’s decision to stop funding LIV Golf is part of a broader shift in how it directs these investments, rather than a retreat from sports investment. The Kingdom continues to see sports as an essential part of its future vision, but it is now pickier about initiatives that meet its development objectives and yield definite economic benefits.

Read more: Smart Stadiums: A Step to Saudi Arabia’s Sports Leadership