Saudi Arabia’s Al-Ahli football club secured its first-ever Asian Champions League title in May, joining fellow homegrown teams Al-Hilal and Al-Ittihad as champions of the continent.
The win offers early validation for the kingdom’s state-backed investments in football – particularly those made by the Public Investment Fund.
Among fans and officials in Riyadh, there will be satisfaction that Saudi football is rising on the global stage.
However, it is notable that the latest player transfer window passed with minimal activity. It seems the hype around the Saudi Pro League has cooled somewhat.
The shift reflects a more broadly cautious approach to sports spending in the kingdom. One reason is pressure on public finances, driven partly by falling oil prices. But it’s also clear that Saudi Arabia is evolving its sports strategy into a more considered and structured phase – especially as it prepares to host the 2034 Fifa World Cup.
Winning the right to stage football’s biggest tournament is a major coup. Yet it also brings significant logistical, political and financial challenges.
For critics who dismiss Gulf nations as frivolous spenders and conspicuous consumers in the world of sport, it’s time to take a second look
Organising a World Cup is a massive task under any circumstances. Doing so under the international spotlight, in a region still building its sports infrastructure and reputation, requires precision and coordination.
It is likely that Saudi Arabia will soon establish a dedicated organising body – paralleling Qatar’s Supreme Committee for Delivery and Legacy (SCDL), which oversaw the 2022 tournament.
Early estimates suggest Saudi spending on the tournament could reach $200 billion, similar in scale to Qatar’s investment. Such a commitment demands meticulous planning, particularly given that post-event returns are far from guaranteed.
Qatar, for its part, is still navigating the post-World Cup landscape. Despite building world-class infrastructure and hosting a widely praised tournament, Doha now faces challenges in maximising its legacy value. Hotel occupancy rates have declined, and questions remain about how to keep facilities busy and economically viable.
In response, Qatar has reaffirmed its commitment to sport by retaining the SCDL and reappointing Hassan Al-Thawadi as its head.
The move reflects a renewed focus on securing future mega-events – most notably, a possible bid for the 2036 Olympics.
Strategically, it solidifies Qatar’s intent to manage legacy over the long term while continuing to pursue global hosting opportunities.
Abu Dhabi, too, is ramping up its sports ambitions. While the capital emirate’s investments have so far focused on football and motorsport – typically in a more understated fashion than Qatar or Saudi Arabia – its approach now appears to be shifting.
This month, global asset manager TPG launched TPG Sports, a dedicated investment platform for the sports industry, backed by a major anchor commitment from Abu Dhabi-based Lunate. The initiative is a joint venture with professional golfer Rory McIlroy and his business partner Sean O’Flaherty, co-founders of Symphony Ventures.
TPG Sports aims to invest in companies, teams and leagues that are shaping the future of sports. The platform will adopt a private equity approach, providing capital and business-building expertise to support the scaling of sports intellectual property and operating businesses.
This development highlights Abu Dhabi’s commitment to diversifying its investment portfolio and strengthening its position as a global hub for sports and entertainment.
For critics who dismiss Gulf nations as frivolous spenders and conspicuous consumers in the world of sport, it’s time to take a second look.
The likes of Saudi Arabia, Qatar and Abu Dhabi are fast becoming more strategic about their commitments in sport, allied to a much sharper sense of return on investment.
Simon Chadwick is professor of AfroEurasion sport at Emlyon Business School in Lyon and formerly worked at Skema Business School in Paris
