Saudi Arabia has achieved a significant milestone in its sports sector transformation with the successful privatization of three football clubs—Al-Ansar, Al-Kholood, and Al-Zulfi—marking the first teams to be transferred to private ownership through initial public offerings.

Historic Foreign Investment

The privatization notably includes the first foreign acquisition of a Saudi football club. The Harburg Group, led by American Ben Harburg, completed a 100% acquisition of Al-Kholood Club, which finished ninth in the 18-team Saudi Pro League last season. The group already holds a 6.5% stake in Spanish second-division club Cadiz.

Ownership Transfers

The three clubs have been transferred to private entities following regulatory completion and corporate restructuring:

• Al-Zulfi to Nujoum Al-Salam
• Al-Kholood to Harburg Group
• Al-Ansar to a joint venture between Audat Al-Biladi and Ayana

Ongoing Privatization Process

The Ministry of Sport, working with the National Center for Privatization, confirmed that the acquisition process for Al-Nahda Club remains under evaluation, with some investment entities requesting extensions. However, interested parties for Al-Orobah and Al-Washm clubs failed to meet the required acquisition procedures and conditions.

Applications are now open for additional Saudi sports club acquisitions through the ministry's official website, involving qualification screening, financial analysis, and competitive bidding stages.

Vision 2030 Integration

This privatization initiative forms a crucial component of Saudi Arabia's Vision 2030 reform agenda, overseen by Crown Prince Mohammed bin Salman, aimed at diversifying the economy beyond oil dependence. The move aligns with the kingdom's broader sports investment strategy, which has already transformed the Saudi Pro League through high-profile player acquisitions including Cristiano Ronaldo and Karim Benzema.

With Saudi Arabia set to host the 2034 World Cup, these privatization efforts represent the kingdom's commitment to repositioning itself as a global sports and business destination while opening the sports sector to private investment and ownership.