Saudi Arabia’s Public Investment Fund (PIF) is on the verge of taking another major step in the acquisition of its game, but this time in the virtual world. The PIF, a branch of the Saudi royal family, has joined the army for $ 55 billion (€ 47 billion) with Jerid Kushnar, and US investment firm Silver Lake Company Electronic Arts (EA), a son -in -law of US President Donald Trump.
This will make it the largest private equity-funded procurement in history and a significant amount of purchase price is made of borrowed money. PIF had about 10% of the first EA. EA hosts successful sports, with its commercial success with sports titles such as EA FC (first FIFA) and Maden NFL.
The size of this deal is dwarf in the game as other PIF investment, discovery as live golf or the purchase of Premier League Team Newcastle United. With those undertakings, and similar cultural asset purchases, the Economic Diversification is a major objective for Saudi and their vision 2030 project, headed by Prime Minister Mohammed bin Salman.
The Gulf State currently depends on oil and gas for about half government revenue depending on the prices of energy. As the world moves slowly to move away from fossil fuels, the inspiration to diversify the economy is clear, as is pushing towards sports and entertainment, which provides a glow to the country’s global reputation.
Saudi’s strategy and domestic concerns are
“PIF is specificly deployed in global gaming and eSports sectors, manufactures and supports ecosystems connecting fans, developers and IP creators,” said Turqi AlnOwaiser, Deputy Governor and Head of International Envesments in PIF.
Professor of Eurasian Sport Industry at France’s Aminion Business School said that Saudi Arabia is actually “one of the few countries in the world with a national asports strategy” but said that there is another inspiration.
“There is something domestic and social.
“It is catering for the domestic population. And it is especially important because it addresses some security concerns.
“Therefore I think there is a provision for not only sports and competitions and sports, but therefore the employment opportunities they bring is a way to address fanaticism. To an extent the Arab rebel attached to it is the edge of Arabs who do not want at all.
Most young people are involved in protests in Morocco and are worried about the poor state of public services. One of the primary disappointment of the protesters is that the North African nation is constructing a stadium in the preparation of the 2030 football men’s World Cup, with Spain and Portugal, ignoring public health and education crises.
Large events provide legitimacy but do they hide the truth?
The next Men’s World Cup will be held in Saudi Arabia in 2034, while the ESORS World Cup was in the country earlier this year and he will host the first Asports Olympics in combination with the International Olympic Committee in 2027.
“If you can showcase the world that you are reducing events that are free from trouble, then are very attractive and popular around the world, attracts a large number of people, suddenly you have in the world and it gives you a voice that you may not have historically,” said Chadwick.
Sportswashing claims, in the words of Human Rights Watch, “have been continuously and brushed by bin Salman and others, using sports events to whitewash the country’s hate human rights.
However, Joy Sheya feels that the latest purchase fits the pattern of distraction. It is not visible to the untrained eye to purchase politically in buying tickets for that game or a football shirt or a golf event.
Shea, a researcher from Saudi Arabia, said that these investments are used to attract attention to the human rights crisis. “
“Our concerns about human rights are with the Saudi government and how they are welding their investment as a tool of soft power and have an impact abroad.
“I am extremely confident that your average fan default does not want to support a cruel, abuse government, which is abroad on the basis of begging a fan of a particular game,” Xi said.
“The tragedy in sportswashing campaigns is that the average fans for the game have been leveraged in the service of thesis abuse objectives.”
Kushner and Trump left Saudi
Bin Salman said in 2023 that “If Sportwashing is going to give sunlight to my gross domestic product through 1%, I will continue to play the game.”
And Chadwick said that “Saudi Arabia is trying to buy effects, but it is just playing the game that everyone is also playing.”
The presence of Kushner’s intimacy partners as one of the parties in the consortium is another aspect of purchasing with significant political unders. Kushner, who has previously served as a senior advisor to Trump, developed close relations with bin Salman and when he has been cultivated.
His father -in -law, meanwhile, earns money from Saudi through his live golf venture, playing a break -up tour on his established PGA tour after the Capital siege by Trump supporters in 2021.
The Trump Organization, which incorporates the President’s business interests, signed a deal to build a $ 1 billion development known as Trump Plaza in Saudi, Jeddah this week, and further strengthened Still Saudi Arabia and US administration.
Additional Reporting by Ronit Borpujari
Edited by: Chak Penfol