Saudi Arabia's Sports Investments: Diversification or Sportswashing?

Saudi Arabia's recent surge in global sports investments has ignited a complex debate: Is the kingdom's substantial financial commitment a genuine effort to diversify its economy, or a strategic move to enhance its international image amid ongoing human rights concerns?

Over the past few years, Saudi Arabia has committed billions to various sports ventures, including the establishment of LIV Golf, hosting major esports tournaments, and securing the 2034 FIFA World Cup. While these initiatives align with the nation's Vision 2030 plan to reduce oil dependency, they have also intensified accusations of "sportswashing"—using sports to divert attention from human rights issues.

LIV Golf Investments

In early 2025, the Saudi Public Investment Fund (PIF) appointed Scott O'Neil as the new CEO of LIV Golf, succeeding Greg Norman. Under O'Neil's leadership, LIV Golf secured approximately $500 million in sponsorship deals over ten months, partnering with global brands such as HSBC, Salesforce, Fox Sports, New Era, and Panini. Despite these financial gains, LIV Golf's UK division reported losses exceeding $1.1 billion since its inception, with $461 million lost in 2024 alone. Independent auditors have expressed concerns about the company's financial stability, yet the PIF, valued at an estimated $925 billion, has committed to covering these losses for the foreseeable future.

Esports Initiatives

The Esports World Cup returned to Riyadh in the summer of 2025, boasting a record-breaking $70 million prize pool. The tournament expanded to include 24 games, such as chess and Riot Games' "Valorant," aligning with Saudi Arabia's Vision 2030 plan to diversify its economy through investments in gaming and sports industries. However, in October 2025, the International Olympic Committee (IOC) and Saudi Arabia mutually agreed to terminate their 12-year Esports partnership, initially established during the 2024 Paris Olympics. This decision came two years before the inaugural Olympic Esports Games were scheduled to take place in Riyadh.

FIFA Partnerships and Infrastructure Projects

In June 2025, FIFA secured a commercial partnership for the 32-team Club World Cup, set to occur in the U.S. from June 14 to July 13, 2025, by signing a deal with Saudi Arabia's PIF. PIF, which owns 75% of Saudi club Al-Hilal—one of the participating teams—will serve as an official tournament partner. Financial details were undisclosed, but Saudi backing is central to the global broadcast rights sold to DAZN and the substantial $1 billion prize pool, with each team, including Al-Hilal, receiving at least $9.55 million.

Saudi Arabia has embarked on significant infrastructure projects to support its sports ambitions. The King Salman International Stadium, a planned multi-purpose venue in Riyadh, is set to have a capacity of 92,760 and is expected to host the opening and final matches of the 2034 FIFA World Cup. Construction is slated to begin in 2025, with completion anticipated by 2029. Additionally, the Aramco Stadium in Khobar, with a proposed capacity of 46,096, is under construction and is expected to be completed by 2026. This stadium will serve as the home for Al-Qadsiah FC and host matches during the 2027 AFC Asian Cup and the 2034 FIFA World Cup.

Human Rights Concerns and International Reactions

Saudi Arabia's aggressive investment in global sports has sparked debates about the intersection of sports, politics, and human rights. Critics argue that these initiatives serve as a form of "sportswashing," aiming to divert attention from the kingdom's human rights record. In a 2023 interview, Crown Prince Mohammed bin Salman addressed these allegations, stating, "If sportswashing is going to increase my GDP by 1%, then we will continue doing sportswashing." This candid admission has drawn criticism from human rights organizations, which view it as an endorsement of using sports to obscure human rights abuses.

Human Rights Watch has highlighted concerns about Saudi Arabia's treatment of women and LGBTQ+ individuals, noting that as recently as 2018, women and girls were barred from participating in sports in schools or even watching sports in stadiums. While some reforms have been made, such as allowing women to drive and travel abroad without male guardianship, significant restrictions remain. The organization's report emphasizes that so long as Saudi Arabia discriminates against LGBTQ+ people and punishes women for their rights activism, FIFA should not allow Saudi authorities to use major sporting events to "sportswash" its rights abuses.

Economic Diversification vs. Image Rehabilitation

Saudi Arabia's substantial investments in global sports have undeniably positioned the kingdom as a major player on the international stage. However, these initiatives have also intensified scrutiny regarding the nation's human rights record and the ethical considerations of intertwining sports with politics. As the kingdom continues to pursue its Vision 2030 objectives, the global community remains watchful of the broader implications of these developments.