Is Saudi Arabia’s Sports Ambition Facing a Major Setback?

Saudi Arabia’s Public Investment Fund (PIF) has announced it will cease funding LIV Golf after this season, casting uncertainty over the future of the controversial golf series. This move raises broader concerns about the kingdom’s extensive sports investment strategy, which has seen billions poured into global events and clubs.

The decision comes amid shifting economic priorities and geopolitical tensions, prompting speculation about whether Saudi Arabia’s grand vision to become a global sports powerhouse is losing momentum. With the 2034 FIFA World Cup on the horizon, the kingdom’s sports revolution now faces critical questions about sustainability and focus.

Why Saudi Arabia Pulled the Plug on LIV Golf

LIV Golf, launched in 2022 with massive financial backing from Saudi Arabia’s sovereign wealth fund, racked up billions in losses. The PIF’s recent statement emphasized a strategic shift toward investments that promise sustainable, long-term returns, making the costly golf venture incompatible with current priorities.

With the kingdom facing a $73 billion budget deficit last year and rising geopolitical tensions disrupting oil exports, the focus has turned to essential infrastructure and security rather than high-profile sports projects.

A Broader Sports Strategy Under Review

Saudi Arabia’s sports ambitions have been vast, including hosting major boxing matches, Formula 1 races, tennis tournaments, and acquiring stakes in football clubs like Newcastle United. These efforts were part of Crown Prince Mohammed bin Salman’s Vision 2030 to diversify the economy and boost tourism.

However, recent developments such as the indefinite postponement of the 2029 Asian Winter Games and the end of Saudi Arabia’s hosting of the WTA Finals suggest a cooling of enthusiasm for some events. The cancellation of the Saudi Snooker Masters and abandonment of a 2035 Rugby World Cup bid further underline this trend.

Which Sports Are Still Thriving in Saudi Arabia?

Despite cutbacks, some sports remain firmly in the kingdom’s plans. Combat sports, especially boxing, continue to receive strong support, with high-profile fights scheduled in Riyadh. Cricket is also gaining traction, with the Women’s World T20 Challenge and plans for a global T20 competition underway.

Formula 1 is expanding with a new state-of-the-art circuit near Riyadh, and the Saudi Pro League’s future looks stable, highlighted by ongoing investment in Newcastle United. These areas align with the kingdom’s goal to engage its youthful population and maintain international sports relevance.

What Lies Ahead for Saudi Arabia’s Sports Vision?

Experts suggest that with the 2034 World Cup approaching, Saudi Arabia is reallocating resources to meet the enormous infrastructure demands of hosting the tournament. This pragmatic shift may mean fewer flashy sports ventures and more focus on sustainable, high-impact projects.

"It is plausible that the government is reallocating capital and reassessing its wider sports portfolio. Geopolitical tensions and rising construction costs may also be accelerating these decisions," says Dr Johan Rewilak, sport management expert at Loughborough University.

While the withdrawal from LIV Golf signals a pause in some ambitions, Saudi Arabia’s commitment to sport remains, albeit with a sharper focus on long-term value and strategic priorities. The kingdom’s sports revolution is evolving, but its future will depend on balancing prestige with sustainability.