Kingdom Holding Company acquires 70% of Al Hilal Saudi Club Company

Today, Thursday, the Saudi Public Investment Fund and Kingdom Holding Company signed a binding share sale and purchase agreement, under which Kingdom Holding Company will acquire 70% of the total capital of Al Hilal Club Company, one of the leading football clubs in the Kingdom of Saudi Arabia and Asia, based on a total enterprise value of 1.4 billion riyals for the entire capital of Al Hilal Club Company.

The Public Investment Fund said, in a statement, that the deal is in line with the fund’s strategy aimed at maximizing returns and recycling capital in the local economy.

This strategy supports the Fund’s efforts to advance sustainable development and diversify the local economy, and the Fund’s investments contribute to launching opportunities that transform the sports sector, support its growth and achieve positive and sustainable results.

The Public Investment Fund has been considered the main shareholder in Al Hilal Club Company since July 2023, within the framework of the investment and privatization project for sports clubs, with the aim of accelerating the development of the clubs and increasing the sports sector’s contribution to the Kingdom’s gross domestic product.

During that period, the Public Investment Fund led the transformation journey of Al Hilal Club Company, along with the club’s executive team, and it witnessed the implementation of an extensive development process in the governance frameworks, infrastructure, private facilities and operational performance of the club. The impact of these efforts was demonstrated by the growth of revenues and the commercial value of the club, with the support of sponsorships, product sales and match revenues. The Fund looks forward to continuing to support the growth process of Al Hilal Club Company, as it is a continuing owner of a share in it.

The acquisition reflects Kingdom Holding Company’s ability to identify promising opportunities and create sustainable value for shareholders and the national economy, and is also in line with the company’s strategy to diversify investments in vital sectors with an economic and social impact.

Under this deal, Kingdom Holding Company will support Al Hilal Club Company in enhancing its commercial performance, expanding its international partnerships, and continuing to develop sports infrastructure with global standards.

Prince Alwaleed bin Talal bin Abdulaziz Al Saud, Chairman of the Board of Directors of Kingdom Holding Company, said: “Al Hilal Club represents a national symbol and a source of pride and pride, and our acquisition of it reflects our deep belief in the role of sports as a developmental force for the economy and society, and will provide a unique platform for applying our global investment standards and building strategic partnerships that will unleash the commercial and sporting potential of Al Hilal Club while preserving its legacy and established identity.”

For his part, Deputy Governor and Head of the General Department of Investments in the Middle East and North Africa at the Public Investment Fund, Yazid bin Abdul Rahman Al-Humaid, said: “The Public Investment Fund is proud to contribute to the transformation efforts in the sports sector, increase its attractiveness to investors and achieve sustainable results at all levels, including players, fans and the local community. The Fund has set ambitious goals for the future of the clubs, and enabled them to become successful entities at the sports and commercial levels and achieve financial sustainability in the long term, and with today’s announcement, Al Hilal Club begins a new chapter.” This is new, and is also in line with the Fund’s strategy to maximize returns and recycle capital into the local economy.”

The deal is expected to be completed after fulfilling the conditions and obtaining the required regulatory approvals in accordance with the terms and conditions of the agreement.