Unlocking Saudi Arabia's Sports Diplomacy: A Strategic Hedge Against Western Abandonment

Saudi Arabia's massive sports investment programs during the reign of Crown Prince Mohammed Bin Salman are not solely driven by profit motives. Rather, they are part of a broader geopolitical strategy to prepare the kingdom for a future where global oil demand is expected to decline and the international order becomes more multipolar. By leveraging sports diplomacy, Saudi Arabia aims to extend its global reach, influence, and secure long-term economic and security relationships with the West, ensuring the survival of the Saudi regime.

Powering Saudi Arabia's Global Ambitions Through Sports

Diversifying the Kingdom's Economic Portfolio

With a staggering 5 billion in assets in 2023, Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF), is on a mission to convert the country's oil revenues into even greater national income. In 2022 alone, the PIF reported .8 billion in profits, and since 2016, it has invested billion in various sports properties. This strategic allocation of resources is not merely a pursuit of financial gains, but a calculated move to future-proof the Saudi economy.

Extending Global Reach and Influence

Saudi Arabia's sports investments, from the high-profile acquisition of Newcastle United in the English Premier League to the launch of the LIV Golf tour, are not just about generating profits. The PIF's annual report explicitly states that these international investment pools "allow Saudi Arabia to extend its global reach and influence." This multifaceted approach, encompassing esports, wrestling, motorsports, and even niche pursuits like chess and snooker, suggests a strategic vision that goes beyond mere financial considerations.

Normalizing Engagement with the Saudi Regime

By actively engaging with the global sports ecosystem, Saudi Arabia aims to normalize its relationship with the West, creating an understanding that Riyadh is a "normal" place to do business. This normalization of economic and political ties serves to ensure the long-term survival of the Saudi royal family and the Saudi state, shielding them from potential western abandonment.

Challenging the Western Democratic Capitalist Model

Saudi Arabia's sports diplomacy is part of a broader geopolitical strategy that challenges the traditional Western democratic capitalist model. Alongside other authoritarian capitalist states like China, Russia, and Singapore, Saudi Arabia is presenting an alternative pathway to development, one that prioritizes economic freedom without the accompanying political freedoms.

Navigating the Shifting Geopolitical Landscape

In an era of increasing multipolarity, where power is distributed among several states, Saudi Arabia's sports diplomacy is a strategic hedge against the potential decline of Western dominance. By cultivating economic and security relationships with entities whose interests align with those of the Saudi royal family and the Saudi state, the kingdom is positioning itself to thrive in a more complex and unpredictable global order.

Normalizing Authoritarian Capitalism

The allure of the "big payday" has made it increasingly inevitable and even desirable for Western entities to engage in business with dictators and strongmen, a phenomenon that contributes to the normalization of authoritarian capitalism on the global stage. Saudi Arabia's sports investments are a prime example of this trend, which has troubling implications for the future of democratic values and the erosion of freedom worldwide.