Sportswash and Diversify: Will this Saudi strategy help the country?

In recent months Saudi Arabia has gone on a buying spree, spending gazillions to acquire superstars of international soccer

Saudi Arabia, the world's second-largest producer of oil, is now trying to project itself as a major global sports hub.

The move is aimed at presenting itself as a moderate Islamic country by highlighting its soft power, and diverting international focus from its dubious human rights record. Recently it has also hosted major international and regional events, like the Ukraine peace meeting, and the Gulf Cooperation Council and Arab League summits.

Critics have called this ‘sportswashing,’ and alleged that the current Saudi leadership has been ruthless against dissidents and leads the world in extra-judicial executions.

Plus, it’s a wannabe strategy.

Other Gulf rivals and neighbours such as the United Arab Emirates (UAE) and Qatar have also tried to use sports to spruce up their international profile. Further, their worldwide television networks such as Al Jazeera and Abu Dhabi Sports have also been money-spinners.

As the Saudis and the Gulf countries try to shift dependence from oil and gas to other sectors, global sports has emerged as a preferred choice.

Football, F1, and more

In recent months Saudi Arabia has gone on a buying spree, spending gazillions to acquire superstars of international soccer, like Neymar, Karim Benzema, Christiano Ronaldo, N’Golo Kante, Sadio Mane, and several others to raise the game of its domestic soccer league.

Football is extremely popular in Saudi Arabia and the Middle East, especially among the youth.

In the past, Gulf nations used to buy stake in or take control of major clubs in the English Premier League and in Europe. Now Saudi Arabia has decided to make international stars perform before the home audience.

Riyadh has been championing other global sports too. It has hosted Formula One racing, the Dakar rally, international golf tournaments, world boxing championships, and women’s wrestling matches (as part of WWE).

Reasons behind the move

The decision to use sports to shore up the country’s image is the brainchild of the 37-year- old Crown Prince Mohammed Bin Salman, popularly known as MBS. He is acknowledged as the de facto ruler of the kingdom.

Traditionally, Saudi Arabia drew its clout from its rich oil reserves and as custodian of the two holiest mosques of Islam at Mecca and Medina, where millions of Muslims from across the world visit every year for the Haj pilgrimage.

But Saudi Arabia has a young population and is trying to deal with rising unemployment. Of its total population of 18 million, 63 percent are below the age of 30. The Crown Prince’s move is aimed at this demographic, his main support base, as he consolidates his position within the kingdom’s hierarchy.

To woo the youth further, MBS has brought in a number of social reforms, like allowing women to drive, encouraging free mixing between boys and girls, and doing away with the headscarf and veil that were mandatory for Saudi women.

All this is being done to build his personal image, both at home and abroad.
However, he has been mindful of not pushing for reform in many areas like marriage, education, and employment and foreign travel for girls, that are still subject to parental consent.

Controversies surrounding MBS

MBS has been a controversial figure since his appointment as defence minister in 2015. The controversies around him grew when two years later, in 2017, he was made the Crown Prince by his father, King Salman.

Starting from the disastrous war with Yemen in 2015, and his subsequent decision to arrest senior princes and leading businessmen and intellectuals on the pretext of ridding the country of corruption, MBS has played the protagonist in several controversies.

His worst challenge came in 2018 in the wake of dissident journalist Jamal Khashoggi’s brutal murder inside the Saudi embassy in Turkey. MBS denied involvement and argued it was an act by “rouge elements” in the Saudi government.

However, the international outrage that followed led US President Joe Biden to describe Saudi Arabia a “pariah state” and cease all contact with the Crown Prince.

War and windfall

The Saudi economy suffered during the pandemic, but the Ukraine war led to a windfall as oil prices shot up in the international market, driving up the country’s revenues.

Ukraine also ended MBS’ international isolation and gave him the confidence to balance relations with the US on the one hand, and Russia and China on the other. Further, it made him realise the futility of the war in Yemen, and accept a China-initiated truce to normalise relations with arch-rival Iran, to help him get out of Yemen. The Houthis of Yemen, who are fighting against the UAE-Saudi coalition, are backed by Iran.

Fastest growing

At 8.7 percent, Saudi Arabia was the fastest growing G20 economy in 2022. This reflected both strong oil production and a 4.8 percent non-oil GDP growth driven by robust private consumption and non-oil private investment in infra and industry, like the Neom SEZ, Qiddiya entertainment city, the Red Sea tourism project, etc.

The total size of the Saudi economy is about $1.063 trillion. The IMF says it has to diversify its economy to reduce its dependence on oil and increase long-term economic stability

MBS’ Vision 2030 programme stresses on investing in non-oil sectors such as green technology, entertainment, and tourism.

But for a Saudi population that is long-used to living on state patronage, coping with an emerging non-oil economy dominated by the private sector could be a challenge that has to be carefully handled by the Crown Prince.