On Thursday, Saudi Arabia’s sovereign wealth fund announced its decision to sell off the majority stake it held in Al Hilal, a prominent Saudi Pro League football club featuring French forward Karim Benzema.
The Public Investment Fund (PIF), which also has ownership of English Premier League team Newcastle United, transferred 70% of Al Hilal to Kingdom Holding Company (KHC). KHC is led by Prince Alwaleed bin Talal, a renowned billionaire and member of the Saudi royal family.
This transaction values Al Hilal’s equity at approximately 1.4 billion Saudi riyals (around $373 million).
The sale comes amidst increasing scrutiny regarding the PIF’s investments in LIV Golf, with rumours suggesting that the controversial league could be facing collapse due to potential withdrawal of financial support from Saudi Arabia.
“Al Hilal is a symbol of national pride and an icon for the Saudi populace,” Bin Talal remarked in his statement.
“This acquisition reflects our strong conviction in the role of sport as a unifying element and a catalyst for national progress.”
“Our approach will leverage global investment standards and forge strategic partnerships to fully realise Al Hilal’s potential while honouring its rich history and identity.”
The PIF, a lucrative public fund overseen by Crown Prince Mohammed bin Salman, secured a majority stake in the Riyadh-based club in 2023, acquiring it alongside three other Saudi league teams – Cristiano Ronaldo’s Al Nassr, Al Ahli, and Al Ittihad – as a part of the kingdom’s sports investment initiative.
This significant financial backing allowed Al Hilal to attract a host of international talents, including Brazilian superstar Neymar, prior to his exit in January 2025.
Karim Benzema recently joined Al Hilal after ending his contract with Al Ittihad.
“This sale is in line with PIF’s strategy to optimise returns and reinvest capital into the local economy,” read the PIF statement.
“This strategy aligns with PIF’s broader objectives to foster development and diversification within Saudi Arabia.”
“PIF is committed to unlocking opportunities that will have a transformative effect on the Saudi sports landscape and deliver positive, long-term outcomes.”
The PIF noted that it had “spearheaded the transformation of Al Hilal, enabling it to achieve remarkable growth in value.”
“As a continuing shareholder, PIF will remain dedicated to supporting Al Hilal’s evolution and growth.”
Compiled by SportArena.au
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