Understanding Arab Investment In The Sporting World

The Qatar FIFA World Cup, the LIV-PGA golf merger, the UAE’s global investment in soccer, plus the vast swathes of top-level athletes heading to the Saudi Pro League are just some examples of emerging Arab investment in sport. In response to this investment there has been global criticism – ugly spats between former footballers, online abuse and public condemnation aimed at anybody implicated from athletes, and coaches to entire organisations (ie: FIFA). This criticism has contended that these states are seeking to distract the rest of the world from their poor human rights records, in a phenomenon known as sport-washing. 

Sport-washing can be understood as the practice of repairing or improving a state’s international image through the utilisation of sport. Abuse of migrant workers, denial of LGBTQIA+ rights, torture and heavy-handed responses to dissent are well-documented throughout the region. These atrocities carry a negative international connotation for Arab states; therefore it makes sense that they may seek to divert international attention away from these abuses. With this in mind, it is confusing for Saudi crown prince, Mohammed bin Salman, to claim that he ‘doesn’t care’ about accusations of sport-washing. Such a laissez-faire attitude seems to be at odds with the positive international image sport-washing strives for. Perhaps these comments by bin Salman point to a more nuanced collection of circumstances that have led to this investment.

In light of this, Umer Hussain, at a Monash University lecture, decried the “singular lens” commonly applied to Arab investment in sports. The Assistant Professor of Sport Management at Wilkes University in the USA highlighted that the UAE, Saudi Arabia and Qatar each have complex issues that are independent of each other. This misunderstanding that the UAE, Qatar and Saudi Arabia are investing in sport only to distract from their poor human rights records concerns him. By failing to recognise the unique reasons to invest in the sporting world the rest of the world is missing the actual strategy being employed by these Arab states.

Whether bin Salman’s comments were meant to point to these unique circumstances is difficult to gauge. Yet, they definitely highlight that Arab investment in sport is much more nuanced than simply being a ploy to improve their international image through sport-washing.

Sporting Investment Strategy

In the same lecture, Hussain contended that there are three strategic goals that the Arab states seek to achieve by investing in sporting events. Firstly, they do so to diversify their economies. For example, by encouraging tourism. Furthermore, he argued that national pride, in the form of international sporting success and local entertainment, drives this boost in investment. Finally, he acknowledged that improving their international image is a key tenet of this investment. This framework recognises that sport-washing is definitely a strategic aim of sports investment, yet also illustrates the other issues at play.

Unique circumstances/strategies of the regimes

Saudi Arabia

The reasons for sport investment by Saudi Arabia stem from internal, regional and global forces. Internally, 63% of Saudi Arabia’s population is under 30. This young population has been made more aware of their limited rights due to the combination of the Arab Spring and information available through social media. According to Hussain, the Saudi ruling class seeks to invest in sport to distract and entertain these younger people from their limited rights. This is reflected in Saudi’s ‘Vision 2030’. This strategy has involved fostering local participation by investing in local clubs, getting famous athletes into the country and by holding football, martial arts, e-sports, racing, tennis and golf events in the country.

In a recent Fox News interview bin Salman said that his country’s sports investment was driven by a desire to increase Saudi’s GDP. The recently announced LIV-PGA golf merger reflects this. By hosting these golf tournaments Saudi gets themselves at the table at potential business conversations and deals that occur during these golf events. The potential business opportunities that arise from this increased representation are clear. 

Furthermore, Saudi Arabia is attempting to build their tourism profile beyond the many pilgrims who come to Saudi Arabia. This has been illustrated by paying sports stars such as Lionel Messi millions to be Saudi ambassador. These athletes utilise their social media profiles as a billboard for Saudi tourism. These economic factors are particularly poignant as Saudi Arabia seeks to diversify its economy and reduce its dependence on oil revenue .

Qatar

Unlike Saudi Arabia, Qatar is not focussed on investment in local clubs. Rather Qatar sports investment is focussed on encouraging tourism, reducing dependency on Saudi Arabia and increasing its profile on the global stage. All the while improving their global image.

About 85% of Qatar’s population are not Qatari nationals. Therefore, tourism is a critical economic lever for Qatar. This is reflected in their ownership of Paris Saint-Germain (PSG), and Qatar Airways’ sponsorship of many major international sports teams and events. This tourism drive is particularly targeting non-western nationals. East-Asian tourism was a distinct focus at the 2022 Qatar FIFA World Cup. K-pop and Bollywood stars were heavily represented in the promotional material Qatar produced for the tournament.

Furthermore, investment in PSG has provided Qatar the opportunity to build a rapport with African nations. Business and tourism deals have flourished. The relations between Qatar and these nations play a broad role in Qatar’s economic and political strategy.

Finally, Qatar has successfully established BEIN Sport as a major player in global sporting media. Prioritising Qatari businesses and promotional material through this medium has allowed Qatar to improve its soft-power image.

UAE

The UAE cabinet has recently announced significant sport and wellbeing strategies to encourage sport participation and growth in the UAE. These targets seek to increase community wellbeing while also seeking to be a path for UAE Olympic and international success

On top of this, the UAE has significantly invested in the UK-based Manchester City, the City Group and many other soccer teams throughout the world. In doing so it has become one of the largest investors in soccer throughout the world. These initiatives improve UAE’s soft power reach and their visibility. This strategy recognises that less than 12% of the UAE population is Emirati. This large expat community must be convinced that residing in the UAE continues to benefit their business interests. To ensure this large portion of their economy is secured it is essential that the UAE maintains a visible and reputable international image. These initiatives are designed to do so.

Photo by Zafarullah Islam on Unsplash

What to make of this?

There are a plethora of objectives that have encouraged Arab states to invest in sports. It illustrates that sport-washing is not the singular intention of these states, instead a much more nuanced analysis is required. With that said, it is important to recognise human rights abuses continue to occur in these states and these atrocities should not be undersold in any discussion about Arab investment in sport. Rather, we should recognise that sport has a long and complicated history with power. For better or for worse, states invest in sport and they will do so for a whole range of reasons that reflect their unique circumstances and interests.

Jochem Bowler
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