PIF sells Al Hilal majority stake to Kingdom Holding

Saudi Arabia’s Public Investment Fund has agreed to sell a majority stake in Saudi Pro League club Al Hilal as it seeks to attract more private sector investment to support its development activities.

Kingdom Holding Company, a Saudi investment company founded by billionaire Prince Alwaleed bin Talal, will pay SAR840 million ($224 million) for PIF’s 70 percent stake, according to a disclosure released to the Saudi Exchange on Thursday.

In an accompanying press release, Prince Alwaleed said that KHC would “unlock Al-Hilal’s full potential while preserving its history and identity”.

The Public Investment Fund, which oversees more than $900 billion in assets, is looking to increase the role of the private sector in its investment activities.

The fund has held a stake in Al Hilal since July 2023, when it also bought controlling stakes in Al Nassr, Al Ittihad and Al Ahli, which were previously state-owned.

PIF has maintained its stakes in the other three clubs.

Speaking to a Saudi news station this week, PIF governor Yasir Al Rumayyan said that the PIFs ultimate goal with its football clubs is to pursue “a sale or an exit”.

The PIF announced a new strategy this week, which focuses on expanding the role of the private sector and boosting returns for the sovereign wealth fund.  

In a press release, Yazeed Al-Humied, deputy governor and head of Mena investments at PIF said that the sale of Al Hilal “aligns with PIF’s strategy to maximise returns and redeploy capital within the domestic economy”.

Al Hilal, which was founded in 1957, has won 21 Saudi League championships and finished as runners up in the 2022 Fifa Club World Cup, after being beaten by Real Madrid.

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