Kingdom Holding Company has signed a binding agreement to acquire a 70% stake in Saudi Pro League soccer club Al-Hilal, Saudi Arabia’s Public Investment Fund (PIF) said on Thursday.
The deal values the share capital of Al-Hilal at 1.4 billion Saudi riyals ($373.20 million). The agreement supports PIF's strategy of maximizing returns while recycling capital back into the local economy.
Since July 2023, the PIF has been the principal shareholder in Al-Hilal as part of a wider initiative aimed at accelerating the development of sports clubs and boosting the sports sector’s contribution to the Kingdom’s gross domestic product.
Chairman of Kingdom Holding Company Prince Al Waleed bin Talal said: “Al-Hilal Club represents a national symbol and a source of pride. Our acquisition reflects our deep belief in the role of sport as a developmental force for both the economy and society.”
Al-Hilal, who have been top-flight champions 19 times, are second in the Saudi Pro League on 68 points from 28 games, eight points off Al Nassr with a match in hand.
Deputy Governor and Head of MENA Investments at PIF Yazeed Al-Humied, said: “PIF has proudly helped drive the efforts to transform Saudi Arabia’s sports sector and increase its value proposition for investors while creating lasting results at every level, from players and fans to local communities.”
“PIF has set ambitious goals for the clubs, enabling them to become successful commercially and professionally and achieve long-term financial sustainability. Today’s announcement aligns with PIF’s strategy to maximize returns and redeploy capital within the domestic economy,” he added.
Completion of the transaction is subject to meeting certain conditions and receiving the necessary regulatory approvals as outlined in the agreement.
