Middle East defence spending accelerates
7 May 2023
Global military spending reached a record high of $2.24tn in 2022, up 3.7 per cent year-on-year, according to newly compiled data from the Stockholm International Peace Research Institute (SIPRI), as the Ukraine war and tensions in East Asia prompted governments to ramp up their investment in equipment.
It marks the eighth consecutive year of growth in global defence expenditure. The sharpest rise was in Europe, where there was a 13 per cent increase in spending, but the Middle East and North Africa (Mena) region was not far behind, with an 11.2 per cent rise on the previous year.
“The continuous rise in global military expenditure in recent years is a sign that we are living in an increasingly insecure world,” said Nan Tian, a senior researcher with SIPRI’s military expenditure and arms production programme.
“States are bolstering military strength in response to a deteriorating security environment, which they do not foresee improving in the near future.”
Rising regional outlay
The rise in the Mena region’s total to $168bn was mostly due to an increase in spending by Saudi Arabia and Qatar and, to a lesser extent, Lebanon and Iran.
As has long been the case, Saudi Arabia dominated the picture, with a defence outlay of $75bn in 2022 – up 16 per cent on the year before and its first increase since 2018.
Military spending data for the Middle East is often opaque. Other large spenders, according to SIPRI’s database, include Israel ($23.4bn), Qatar ($15.4bn), Algeria ($9.1bn), Kuwait ($8.2bn), Iran ($6.8bn) and Oman ($5.8bn).
However, the institute has no estimates for a number of other countries, most notably the UAE. Its most recent figure for the UAE is for 2014, at which point the defence budget was an estimated $22.8bn, the region’s second-biggest after Saudi Arabia that year.
There are also no current estimates for defence spending by the countries suffering the greatest instability, including Libya, Sudan, Syria and Yemen.
Others have drawn up figures for the UAE, though. The London-based International Institute for Strategic Studies (IISS) estimated the UAE’s defence spend was $20.4bn last year in its recently published Military Balance 2023 report. That marked a 6 per cent rise on the previous year’s estimate.
While the UAE may not have the largest budget in the region, IISS says its armed forces are “arguably the best trained and most capable of all GCC states”.
Unclear Iranian picture
The outlay by Iran is also a matter of some debate, given the questions over the value of the rial and the country’s high inflation rate of around 40 per cent.
SIPRI says that, in local currency terms, Iran’s defence spending grew by 38 per cent to IR1,988tn in 2022. That is equivalent to some $46.9bn at the government’s official exchange rate, but far less at the open market rate used by SIPRI.
Inflationary pressures have become a common concern for countries around the world, even if few are having to cope with price rises as rapid as in Iran. Many Western countries are also dealing with an energy supply crisis due to the war in Ukraine, which has led to prices spiking upwards and sanctions being imposed on Moscow.
The Middle East’s oil exporters have benefitted from elevated oil prices, making it easier to afford the rise in defence spending.
However, the most notable direct consequence of the conflict in Ukraine for the Middle East has been the surge in military cooperation that has followed between Russia and Iran. Moscow’s failure to quickly take control of Ukraine has led to a drawn-out conflict and, as its weapons inventory has become depleted, it has imported drones from Iran to fill in some of the gaps.
That cooperation may yet extend in the other direction, with Iranian media reporting in March a potential deal for Tehran to receive Russian Sukhoi Su-35 fighter jets. Iran will also have gained useful information about the performance of its Shahed 131, Shahed 136 and Mohajer-6 drones in the war.
Lingering Gulf concerns
Such developments will likely concern other Gulf governments, even if regional tensions have eased somewhat due to the rapprochement between Saudi Arabia and Iran, announced via a China-brokered agreement in March.
That fits into a broader regional trend for de-escalation and diplomatic advances. Recent talks between Saudi officials and Yemen’s Houthi rebels in Sanaa could yet pave the way to resolving that conflict – further discussions between the two sides are due to take place in May, possibly in Muscat.
The levels of violence in Libya and Syria have also been on a downward trajectory over the past year, but both remain susceptible to further outbreaks of fighting, as does Iraq.
Elsewhere, though, relations between Algeria and Morocco remain problematic, and the prospects of any peace deal between the Israelis and Palestinians look as distant as ever with the hardline government of Israel’s Prime Minister Benjamin Netanyahu in office.
Any reduction in regional tensions will be a welcome development given the high burden of defence spending on local economies. As IISS points out, many Mena countries’ defence budgets are very large relative to the size of their economies.
As has long been the case, Oman spends more as a proportion of its GDP than any other country in the region, with its 2022 outlay equivalent to 5.9 per cent of GDP, according to IISS calculations.
It is followed by Kuwait at 5 per cent and Saudi Arabia at 4.5 per cent.
The average for the region is 3.8 per cent of GDP, more than double the global average of 1.7 per cent. The overall trend for rising budgets means that the economic burden is unlikely to fall away any time soon.
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Broader region upgrades its airports Yasir Iqbal
25 July 2025
This aviation package also includes:
> Middle East invests in giant airports
> Global air travel shifts east
While high-profile projects such as the development of King Salman International airport and the expansion of Al-Maktoum International airport have captured headlines, a quieter but equally significant story is unfolding elsewhere.
Smaller countries across the region are increasingly investing in airport infrastructure, either by modernising existing terminals or constructing entirely new facilities.
Throughout the broader Middle East, governments are dedicating substantial resources to expanding airport capacity in order to meet growing passenger demand, enhance global connectivity and support wider economic reforms.
Oman
Oman achieved a milestone in 2019 with the opening of Muscat International’s new terminal, which increased the country’s passenger handling capacity to 20 million annually.
The government is now shifting its focus to regional airports, including the planned Musandam airport – an important component of Oman Vision 2040. This project aims to stimulate economic development in the Musandam region by enhancing logistics and promoting tourism.
In June, Oman’s Civil Aviation Authority invited firms to prequalify for the enabling works contract for Musandam airport. The project attracted strong interest, with more than 50 local and international companies expressing their intent to participate in the construction work.
Beyond physical infrastructure, Oman is also looking to modernise its aviation ecosystem. Plans are under way to expand the air navigation infrastructure and open the sector to private international investment through concessions for the management and operation of airports and related services.
These efforts align with the National Aviation Strategy 2030, unveiled in 2020, which aims to attract $3.6bn in investment for airport cities over two decades.
Kuwait
Kuwait International airport is undergoing a major redevelopment with the construction of Terminal 2, a project led by Turkish contractor Limak. The long-delayed $5.8bn development is now progressing steadily and is expected to be completed by the end of 2026.
Spanning over 700,000 square metres (sq m) and comprising five floors – including one underground level – the new terminal will significantly boost the airport’s capacity. Once the first phase is completed, it will be able to handle 25 million passengers annually, with capacity expected to increase to 50 million in later phases.
The terminal plays a central role in Kuwait’s ambition to become a regional transit hub and is a cornerstone of the country’s broader economic diversification efforts outlined in the New Kuwait 2035 strategy.
Qatar
Qatar marked a significant milestone in its aviation sector in February with the inauguration of Concourses D and E at Hamad International airport (HIA), boosting capacity to over 65 million passengers a year.
With the opening of these two new concourses, the HIA expansion project – launched in 2018 – is now complete. The expanded terminal spans more than 842,000 sq m and includes 17 new aircraft contact gates.
While high-profile projects have made headlines, a quieter but equally significant story is unfolding elsewhere
Bahrain
Bahrain completed a $1.1bn expansion of its international airport in 2021, more than doubling its annual passenger capacity to 14 million. The project included the construction of a new terminal, upgraded baggage handling systems and enhanced passenger services.
While smaller in scale compared to its regional counterparts, Bahrain International airport plays a crucial role in supporting the kingdom’s financial and tourism sectors.
Continued investment in airport infrastructure is anticipated, as Bahrain seeks to remain competitive in a region where aviation standards are rapidly evolving.
In October last year, Bahrain’s Minister of Transportation Mohammed Bin Thamer Al-Kaabi said that the kingdom is considering developing a new terminal at Bahrain International airport. Although discussions are still in the early stages, preliminary plans suggest substantial upgrades – including increased passenger capacity, automated check-in systems, enhanced security features and expanded retail areas.
Iraq
Iraq is gradually rebuilding its aviation sector after years of conflict and instability. In July, it issued a tender for a public-private partnership to rehabilitate, expand, finance, operate and maintain Baghdad International airport in a project valued between $400m and $600m.
The airport’s initial capacity is expected to be around 9 million passengers, with plans to increase to 15 million over time.
According to an official statement, Iraq’s Transport Ministry has prequalified 10 of the 14 international consortiums that expressed interest earlier this year to compete for the tender.
Morocco
Morocco, as part of its MD42bn ($4.3bn) plan to expand key airports ahead of the 2030 Fifa World Cup, has begun procuring contractors to expand its largest airport, Mohammed V International Airport in Casablanca.
In June, 28 local and international firms expressed interest in building the new terminal, which will cover approximately 450,000 sq m and is scheduled for completion before the World Cup, which Morocco will co-host with Portugal and Spain.
Morocco also plans to upgrade airports in Tangier, Marrakech, and Agadir, boosting their capacities to 7 million, 16 million and 7 million passengers annually, respectively. Additionally, a new terminal at Rabat-Sale airport will increase its capacity to 4 million passengers, while Fez airport’s capacity is set to rise to 5 million annually.
Main image: Morocco has started the procurement process to expand its largest airport, Mohammed V International airport in Casablanca, ahead of the 2030 Fifa World Cup
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Middle East invests in giant airports Colin Foreman
25 July 2025
The two largest airport construction projects in the world are in the GCC, according to UK data analytics firm GlobalData’s latest ranking of international airport projects.
Dubai’s Al-Maktoum International airport ranks first, followed by Riyadh’s King Salman International airport.
The scale and timing of the two projects underscores the region’s intention to remain a global travel hub.
Demand has rebounded strongly following the Covid-19 pandemic and data for 2024 shows that air traffic is nearing or exceeding pre-pandemic levels at many airports. These tailwinds have continued into 2025 and are expected to continue for many years to come.
Dubai pivots
In Dubai, the expansion of Al-Maktoum International airport, which is also known as Dubai World Central, is back on the agenda after a five-year hiatus. The expansion project was launched in 2014 and was put on hold as the emirate focused on delivering infrastructure for Expo 2020 and then dealt with the economic impact of the Covid-19 pandemic.
With a rebound in air travel and growing operational pressure at Dubai International airport (DXB), the project was relaunched in 2024.
Once complete, Al-Maktoum will cover an area of 70 square kilometres (sq km), which will make it five times larger than DXB. It will have five parallel runways, five terminal buildings and up to 400 aircraft gates. It is designed to eventually handle 260 million passengers and 12 million tonnes of cargo a year, making it the largest passenger airport in the world by capacity.
The government has said that operations will shift from DXB to Al-Maktoum within the next 10 years. The project is also driving housing and commercial development in the surrounding area, with plans to accommodate up to 1 million residents around the new airport zone.
Construction is already progressing. In May, Binladin Contracting Group won a AED1bn ($272m) contract for the second runway, and Abu Dhabi-based Tristar E&C is delivering enabling works for the terminal.
Dubai Aviation Engineering Projects (DAEP), the government entity managing the development, has also issued tenders for the first phase of construction, which is expected to be completed by 2032.
The initial phase includes five substructure packages covering tunnels, technical infrastructure and a seven-level West Terminal spanning 800,000 square metres. This terminal alone will have an annual capacity of 45 million passengers.
DAEP has also tendered a contract for the airport’s automated people mover system, which will operate beneath the apron and link 14 underground stations across the terminals and concourses. International firms including Alstom, Hitachi and CRRC are expected to bid.
Unlike in 2014, when Dubai had some time on its side, the need for expansion today is becoming increasingly urgent. While DXB remains the world’s busiest airport for international passengers and the second busiest overall with 92.3 million travellers in 2024, it operates with only two runways and is approaching its physical limits.
As Emirates begins flying smaller Airbus A350s with fewer seats than the A380s the company is replacing, the number of aircraft movements is expected to increase, further straining capacity. DXB already ranks among the world’s busiest airports for aircraft movements. Without additional runway infrastructure, future growth will be constrained.
Riyadh’s global ambitions
While Dubai expands to maintain its lead in aviation, Riyadh is seeking to establish itself as a global hub.
Backed by sovereign wealth vehicle the Public Investment Fund, the King Salman International airport project represents a central pillar of Saudi Arabia’s $100bn aviation and economic diversification strategy.
The airport will cover 57 sq km, integrating the existing King Khalid International airport and adding six parallel runways, several new terminals and a 12-square-kilometre mixed-use logistics and real estate zone.
By 2030, Riyadh aims for the airport to accommodate 120 million passengers annually, rising to 185 million by 2050. It will also target 3.5 million tonnes of cargo a year.
The airport will anchor the kingdom’s wider aviation strategy, which seeks to triple annual passenger traffic to 330 million, expand cargo throughput to 4.5 million tonnes and grow Saudi Arabia’s network to over 250 global destinations.
While Dubai expands to maintain its lead in aviation, Riyadh is seeking to establish itself as a global hub
The newly launched Riyadh Air will operate from the new hub, complementing Saudia and positioning the capital as a central node in global travel.
Contractors are already competing for major construction packages. The fourth runway package and a separate contract covering the Iconic Terminal and Terminal 6 for low-cost carriers are out to tender.
Several international firms have been appointed to design and delivery roles. Foster & Partners is leading the masterplan and terminal architecture, Jacobs is supporting runway and infrastructure design and Bechtel is delivering the terminal programme. Parsons has taken responsibility for airside and landside works and Mace is overseeing overall delivery management. Local firm Nera is handling the critical airspace design consultancy.
Both airports, along with other hubs and airport projects that are being developed in the region, will help the Gulf remain a key player in global aviation for decades to come.
Main photo: Artist’s impression of the phase two expansion of Dubai’s Al-Maktoum airport. Credit: Dubai Airports
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Gulf banks navigate turbulent times James Gavin
25 July 2025
Much can change in a year, as GCC banks are finding out. They face a sharply different environment in mid-2025 than they did at the same point last year. In 2024, GCC banks’ immediate challenge was the downward shift in interest rates dictated by the US Federal Reserve, prompting a drop in interest income and forcing lenders to secure other forms of revenue.
This year, the political and economic disruption wrought across much of the world has changed the calculus for regional lenders.
While lower interest income remains an ongoing challenge, a broader mix of issues requires attention, including tighter liquidity, higher cost of funds and the need to continue supporting domestic diversification agendas.
The good news for GCC banks is that, on the whole, the positives are outweighing the negatives.
According to Kamco Invest research, GCC banking sector bottom-line growth was steady in early 2025, with Q1 2025 witnessing expansion of 8.6% to reach $15.6bn, a record for that quarter.
This increase came despite a decline in net interest income of 1.7% in year-on year terms, and was mainly led by higher non-interest income, lower operating expenses and a decline in impaired loans.
Position of strength
Strongly performing Gulf economies over successive years have created favourable conditions for banks, offsetting the impact of lower interest rates.
“Throughout this period of higher oil prices, GCC banks were building their capital buffers because profitability was good,” says Redmond Ramsdale, head of Middle East bank ratings at Fitch Ratings.
“Asset quality in most of these countries has been improving. So the banks are in quite a good position with the buffers they have built.”
Strongly performing Gulf economies over successive years have created favourable conditions for banks, offsetting the impact of lower interest rates
Despite the economic volatility seen in the first half of 2025, Gulf banks have proved resilient, even if President Donald Trump’s tariffs remain a challenge for US trading partners globally, including those in the Gulf.
“Tariffs are likely to have limited direct impact on GCC banks. It’s more about what is the importance of tariffs on oil prices. Lower oil prices are negative for the GCC because oil is still the main component of government revenues – and that’s what effectively translates into lending or financing growth for the banks,” says Ramsdale.
Credit growth is holding up strongly, which in part reflects the resilience of economic diversification programmes in the GCC.
Demand for credit is also holding up, as is government spending – typically a key determinant of economic confidence, and a driver for non-oil GDP.
The consensus among analysts is that credit growth will remain in the high single-digits for the GCC as a whole, and will be still higher in Saudi Arabia.
“In Saudi Arabia we forecast that the loan growth will remain strong this year, and will be driven more by corporate lending as projects around Vision 2030 are being implemented — less so by mortgages,” says Mohamed Damak, senior director, financial services at S&P Global.
According to Damak, mortgages will continue to grow because there is still demand. “But the big story for Saudi banks is the recourse to external funding,” he says.
“They have been issuing debt on the international capital markets in order to mobilise liquidity to be able to continue to finance their growth, because deposit growth is not sufficient to finance all lending growth.”
This is the backdrop to the extensive issuance being seen in the kingdom and other Gulf markets. Saudi National Bank (SNB) completed the issuance of $1.25bn in Tier 2 US dollar capital notes in June, with order books exceeding $4bn.
It is not just Saudi banks that are in issuance mode. GCC banks have about $2.2bn in US dollar-denominated Additional Tier 1 (AT1) instruments with first call dates due in 2025, and a further $3.1bn in 2026, according to Fitch Ratings. This comes off a strong year for Gulf bank debt issuance in 2024, when $42bn of issuance was seen – the previous record was in 2020 with about $26bn.
First-half 2025 issuance stands at $38bn, suggesting this year is going to set a new record. Maturities valued at $16bn are due in 2026, with $13bn due in 2027, a further driver for banks to tap the debt capital market.
At least three Saudi lenders have issued AT1 dollar-denominated capital Islamic bonds (sukuk) this year as they have moved to take advantage of tighter spreads and strong investor demand.
Saudi banks – in line with previous years – are driving loan growth, with UAE lenders not far behind.
“Our forecast for credit growth in Saudi Arabia for this year is between 10% and 12%, which is still very strong growth, and the highest in the region. That is driving quite strong profitability, despite the fact that they are funding this growth with more expensive funding,” says Ramsdale.
The kingdom’s current and savings account deposits are not growing at anywhere near the pace that loans or financing is growing, notes Fitch, so banks are filling that with term deposits or external liabilities.
The higher reliance on foreign funding has led to tighter liquidity. “Loan growth is exceeding deposit growth, so banks need to issue,” says Ramsdale.
Another reason for issuance is the need for dollars, which are being used to fund major government projects, notably in Saudi Arabia, where about 40% of the GCC bank issuance is located.
Shrinking liquidity
The prospect of tightening liquidity, as deposits prove trickier to attract, is not a cause for undue concern. There are ample tools at the central bank’s disposal to manage the situation.
“The Saudi Arabian Monetary Agency still has a lot of [deposits from government-related entities] sitting in its accounts that can be deployed into the banking sector. If liquidity gets too tight, it can do so,” says Ramsdale.
Stress-testing exercises appear to bear this out. According to S&P Global, all GCC banking systems have enough liquidity to sustain funding outflows, with the exception of Qatar, where there is a shortfall of $9bn under its hypothetical stress scenario. This is due to the fact that Qatar starts with a higher external debt compared to all other regional countries.
This $9bn is something the authorities can easily absorb, however, as demonstrated by the strong track record of support.
S&P stress tested the banking systems on three metrics – the outflow of external debt, the potential outflows of local private sector deposits and the implication on the economy and on the asset quality indicators.
The ratings agency looked at the top 45 regional banks. Under the first scenario, the outflow of external debt, 16 of the banks would show losses of around $5bn in cumulative terms, says Damak.
For the second scenario, 26 out of the top 45 would be loss-making for a total amount of around $30bn.
“But now, when you compare the $30bn to how much profit these banks have made over the last year – about $60bn – it means that they have the capacity to absorb the problem without any significant impact on capitalisation,” says Damak.
UAE banks’ massive debt external asset position makes them fairly resilient to potential stress-related external capital outflows, notes Damak.
Big banks dominate
At the individual level, the region’s large ‘national champion’ banks continue to dominate banking systems. Some of these institutions have posted impressive early-year performances.
For example, Al-Rajhi Bank, the largest lender in the GCC by market capitalisation, reported a 34% year-on-year increase in net profit in Q1 2025. It is reaping the benefit of the kingdom’s surging credit demand. Booking healthy profits on the back of strong loan demand, from both corporate and consumer sectors, comes relatively easily in this context.
However, where loan growth is weaker, banks’ earning performances have been commensurately negatively affected.
Looking ahead, profitability is expected to be marginally down this year
For Qatar National Bank, which is considered the largest Qatari bank by assets, while Q1 net profit reached $1.2bn, this
was only up by a couple of percentage points compared to the same period last year, indicative of less robust credit growth in Qatar.“The largest banks in the GCC – the likes of SNB and Al-Rajhi in Saudi Arabia, First Abu Dhabi Bank and Emirates NBD in the UAE and National Bank of Kuwait and Kuwait Finance House in Kuwait – tend to have around 50%-60% of the total banking system, which gives them an advantage in terms of efficiency, delivery and market access,” says Ashraf Madani, a senior analyst at Moody’s Financial Institutions Group.
“These banks are highly rated in terms of their standalone and overall deposit ratings and we expect their advantage to continue.”
Looking ahead, profitability is expected to be marginally down this year, says Madani, reflecting some pressure on the net interest margins because of the lower rates since Q4 last year, and also the expectation that credit costs should normalise compared to the previous year.
One of the big plus-points for Gulf banks is the improvement in asset quality witnessed in the past year, suggesting that Gulf economies’ post-Covid recovery has helped reduce bad loans.
“We’re seeing non-performing loans heading in the right direction, trending lower, and that’s basically because of the strong performance of borrowers, and the denominator effect, whereby an increase in the overall size of the loans will lower overall ratio,” says Madani.
Other factors supportive of loan quality are regulatory changes in the UAE, which has allowed UAE banks to write off some of the legacy problem loans, another factor that is likely to move the headline non-performing loan ratio down.
Given the political and economic turbulence witnessed in the first half of the year, Gulf bank chiefs will not be minded to make rash predictions about future conditions. Even so, the resilience on display, and the healthy loan appetite, will likely boost confidence that lenders in the region can withstand further headwinds.
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Consultants shortlisted for new Egyptian railway Edward James
25 July 2025
Four European consulting groups have been shortlisted for a contract to provide project implementation support and construction supervision services for a new railway in Egypt, linking Robeiky with Belbeis via 10th of Ramadan.
France’s Systra, Italy’s Italferr, and two joint ventures comprising Germany’s DB E&C with France’s Egis and Germany’s SSF International with the local Ehaf will now be invited to bid for the contract by the project client, Egyptian National Railways (ENR).
The project, which has an estimated value of just under $200m, comprises the supply and installation of railway tracks, and signalling and telecommunication systems.
The new line will connect the 10th of Ramadan Dry Port project (DP10) to ENR’s main network and, in parallel, allow freight traffic from southern ports towards the north of the Nile delta to bypass the Cairo railway node and save time. It will also provide a railway link between Belbeis and DP10 for commuting traffic.
It includes seven stations: Robeiky, Industrial Zone 1, Industrial Zone 2, Kilometre 14, the 10th of Ramadan interchange station connecting to the Cairo–New Capital LRT network, DP10 and Belbeis.
The project alignment is divided into two sections. The first part of the railway line, with a length of 48 kilometres (km), connects the Robeiky and Belbeis stations.
The second part of the railway line is a 12km branch link from the main line junction to the border of the planned DP10 station, served by parking and a shunting yard.
Four competing contracting alliances are bidding for the construction works. They are:
- Alstom/Concrete Plus/Rowad Modern Engineering (France/local/local)
- Dhaka Bangladesh Group
- CBS Group/Orascom Construction (Spain/local)
- Hitachi/Mermec/Salcef/El-Hazek Construction (Japan/Italy/Italy/local)
The project is being financed with a €35m ($41m) loan from the European Bank for Reconstruction & Development (EBRD) and a €71m facility from Agence Française de Developpement (AFD). ENR will provide the remaining equity.
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First foreign firm takes ownership of Saudi football club Yasir Iqbal
25 July 2025
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Saudi Arabia’s Ministry of Sport, in collaboration with the National Centre for Privatisation & PPP (NCP), has announced the winning bidders of the rights to own and operate three sports clubs in the kingdom.
The agreement marks the first time a foreign investor has owned a Saudi football club, with the US-based investment firm Harburg Group winning the ownership rights of Al-Kholood football club.
The club competes in the Saudi Pro League and is based in the city of Ar-Rass, in the Al-Qassim province of the kingdom.
Riyadh-based firm Nojoom Al-Salam Holding will assume the ownership of Al-Zulfi club. The club is based in Al-Qassim province and competes in the Saudi First Division League, the second tier in the Saudi Arabian football league system.
Medina-based firm Awdah Al-Biladi & Sons acquired the ownership of Al-Ansar football club. The club is based in Medina and plays in the Saudi Second Division, the third tier of Saudi Arabia’s football league.
In April, MEED reported that the Ministry of Sport, in collaboration with the NCP, was expected to announce the winning bidders for owning and operating six sports clubs soon.
According to local media reports, the ministry received more than 22 offers for the acquisition of clubs, including bids from foreign companies.
The other clubs that were opened for privatisation include Alnahdah Sports Club (Dammam), Alokhdood Sports Club (Najran) and Alorobah Sports Club (Sakaka City).
In August last year, MEED reported that Riyadh was seeking investor interest in owning and operating six sports clubs in the kingdom.
The announcement followed a notice from the ministry in July that approval had been given for the privatisation of 14 sports clubs in the kingdom.
“The move is part of the ongoing implementation of the sports clubs’ investment and privatisation project launched by the Crown Prince, in line with the goals of Saudi Vision 2030. It also aims to provide opportunities for the private sector to participate in building and developing the sports sector, thereby benefiting national teams, clubs, fans and all sports practitioners,” NCP said in an official statement.
Saudi Arabia has major plans to develop its sports infrastructure. The kingdom will likely invest hundreds of billions of dollars in developing the required infrastructure to host the 2034 Fifa World Cup.
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