Saudi Arabia's PIF Sells 70% Stake in Al Hilal to Kingdom Holding Company
Saudi Arabia's PIF Sells 70% Stake in Al Hilal to Kingdom Holding Company
Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF), has sold a 70 percent stake in Al Hilal to Kingdom Holding Company, the firm run by billionaire businessman and Saudi royal family member Prince Alwaleed Bin Talal. The deal values the Saudi Pro League club at SAR 1.4 billion (approximately £276 million or $373 million).
Al Hilal, currently second in the Saudi Pro League, is one of Saudi Arabia's most successful and prominent football clubs, having won 19 league titles including six since 2017. The club has been among the biggest spenders in the league, recently acquiring 2022 Ballon d'Or winner Karim Benzema from fellow Saudi side Al Ittihad in the January transfer window.
The club's roster already includes former Liverpool striker Darwin Nunez, Portugal midfielder Ruben Neves, and Senegal defender Kalidou Koulibaly, under the management of former Inter head coach Simone Inzaghi. In March, reports indicated the club was interested in appointing Liverpool's sporting director Richard Hughes to the same role at Al Hilal.
Strategic Shift in PIF's Sports Portfolio
Al Hilal was one of four Saudi Pro League clubs owned by PIF, which became the majority shareholder in 2023. The other clubs include Al Nassr, Al Ahli, and Al Ittihad. This sale comes amid scrutiny of PIF's sports investments following reports that the fund was potentially pulling its funding for LIV Golf, the rebel golf league that has accumulated billions of dollars in losses since its founding in 2022.
The strategic shift was formalized on Wednesday when Saudi Arabia's crown prince and PIF chairman, Mohammed bin Salman, approved a five-year strategic plan focused primarily on domestic objectives.
Official Statements on the Transaction
In a press release issued on Thursday, Yazeed A. Al-Humied, PIF's deputy governor and head of Middle East and North Africa investments, stated: "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."
Al-Humied added: "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."
Prince Alwaleed Bin Talal expressed his vision for the club, saying: "Al-Hilal is a national symbol and a source of pride for the Saudi people. This acquisition expresses our deep belief in the power of sports as a unifying force and a catalyst for national development. By applying our global investment standards and cultivating strategic partnerships, we will unlock Al-Hilal's full potential while preserving its history and identity."
Implications for Saudi Football
The sale represents a significant development in Saudi Arabia's football landscape, marking a transition from direct sovereign wealth fund ownership to private investment while maintaining royal family involvement through Kingdom Holding Company. The transaction comes as Saudi football continues to attract global attention through high-profile player acquisitions and investments in infrastructure and talent development.
Industry analysts will be watching closely to see how this ownership change affects Al Hilal's transfer strategy, financial operations, and competitive performance in both domestic and international competitions.