Saudi Arabia Could Invest in a Formula 1 Team
According to the president of the kingdom’s automobile and motorcycle federation, Saudi Arabia could take the next step in its relationship with Formula 1: owning a team.
Prince Khalid bin Sultan Al-Abdullah Al-Faisal, in a video conference prior to the Jeddah race, stated that there is interest in this possibility.
“It could happen, it could happen soon if you see the growth [of the sport],” he said. “If you are going to buy a Formula 1 team, people will buy it to make money, especially if it is bought by one of the PIF [Public Investment Fund of Saudi Arabia] companies. We see that Formula 1 is reaching new markets, sales are increasing worldwide.”
Prince Khalid bin Sultan Al-Abdullah Al-Faisal
The prince also added that he would not be surprised if a Saudi team is announced, given the existing interest and sponsorship of teams.
Saudi Arabia debuted in Formula 1 in 2021. In addition, the energy company Aramco is a global partner of the sport and a principal sponsor of the Aston Martin team.
The Public Investment Fund (PIF) has already invested in McLaren and has a 20.5% stake in Aston Martin. The latter recently announced a fundraising of over £125 million.
There is speculation about the future of the Alpine team, owned by Renault, despite the French company’s insistence that selling is not in its plans.
Other Middle Eastern countries, such as Qatar and Bahrain, also have links to Formula 1. Qatar’s sovereign wealth fund owns a significant stake in the Audi team, and Bahrain’s fund is the majority shareholder of McLaren.
Saudi Arabia’s investment in sports has been significant in recent years, amid accusations of “sportswashing.” The country denies these accusations.
Formula 1 is experiencing a boom in the Middle East, with a notable growth of female fans. The region hosts four of the 24 races on the calendar.
The value of Formula 1 teams has increased, driven in part by the Netflix documentary series “Drive to Survive”.
Prince Khalid concluded: “Personally, I would like to see a Saudi team. But if Saudi Arabia or one of the Saudi companies get involved in one of the teams, I would like them to do it the right way and be successful. It’s a complicated question, but why not?”
