Saudi Minister of Investment: Golf Merger Just One Step in Kingdom’s Ambitious Tourism and Investment Strategy

Saudi economy

The Saudi Minister of Investment, Khalid Al-Falih, considered the merger deal launched by the Saudi Public Investment Fund between “Live Golf” and the Professional Golfers’ Association (PGA) as just one step in the Kingdom’s ambitious tourism and investment strategy.

During an interview with CNBC in Riyadh, Al-Falih indicated that sports of all kinds are a major economic component of the global economy, and for example, are part of media, digital journalism, games, and global consumption. “The Kingdom has plans and investments in many sports, such as boxing, football, Formula A, Formula E, and golf,” according to what was seen by Al Arabiya.net.

Al-Faleh said, “We are very much in favor of finding a strategy for all of the above, and we seek to pave the way for sports investment.”

He added, “Any sport that has global and local consumers is a sport that we are interested in as an investment opportunity, not only to achieve commercial returns for investors, whether they are the Public Investment Fund or private investors, but also to improve the quality of life in the Kingdom of Saudi Arabia, as it is part of our tourism agenda.” .

The merger deal between the PGA and LIV Golf, which was unveiled last week, has ended a two-year battle between the two golfing arch-rivals.

Founded in 2021 with the goal of becoming the world’s first professional golf league, LIV Golf has been backed by the Public Investment Fund and has lured some of golf’s biggest stars away from the PGA. This led to litigation between the two entities until the decision to merge, which ended all pending lawsuits.

“The region is more than capable of being part of this global phenomenon,” Al-Falih said of the Middle East. “It is the latest phenomenon for the rise of sports as part of the global economy.” “Golf is part of it, and it is a sport that appeals to an important segment of the population who also play and follow golf.”

As part of the PGA-LIV merger, the Saudi Public Investment Fund is now the exclusive investor in the new golf entity, and has the right of first refusal for any new investment.

The Public Investment Fund is rapidly expanding into sports, hosting Formula 1 Grand Prix and major boxing matches, and acquiring the English Premier League football team Newcastle United.

Saudi Arabia has also attracted football legends Cristiano Ronaldo and Karim Benzema to play in the Saudi League, and is expected to host the 2030 World Cup.

Al-Falih pointed to the power of sports in attracting tourism, but also in offering something attractive to Saudis already in the country.

He said: “Sport is an important component of the global economy, consumption, media and digital content, and it is now in our hands through phones and laptops, whether as individuals, families and companies.” “Of course, as investment minister, I welcome it as an opportunity for us to create more.”

The minister added, “It is part of preserving our Saudi citizens, and global residents who choose the Kingdom as their home, to stay in Saudi Arabia and consume this product, which is in high demand,” and also to bring international sports followers to the Kingdom for the various activities and sports that will take place here.

Al-Falih explained that about 70% of Saudis are under the age of 35, and the Kingdom’s youth are digitally active and in effective communication with the world, which creates a huge market for sporting events.

“We have one of the highest consumption rates per capita for many sports activities, electronic sports and digital games,” Al-Falih said, adding that “the establishment of these activities in Saudi Arabia, owned by Saudi entities such as the Public Investment Fund, will direct this demand in positive ways and generate commercial returns.” “I think it will increase the flow of investment by Saudi investors.”

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