Beyond Black Gold: How Saudi's oil giant became a sports powerhouse
For years, Aramco has served as an instrument of Saudi statecraft.Today, it also serves as a vehicle for projecting soft power through international sports.
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Last week, FIFA unveiled Saudi Arabia’s state-run oil and gas conglomerate, Aramco, as its Major Worldwide Partner under a deal that will run through to the end of 2027.
Under the deal, Aramco will have sponsorship rights for the football governing body’s most prestigious upcoming events, including the 2026 FIFA World Cup 26 and the 2027 FIFA Women’s World Cup.
"We are delighted to welcome Aramco to FIFA's family of global partners," FIFA president Gianni Infantino said in a joint statement. "This partnership will assist FIFA to successfully deliver its flagship tournaments over the next four years and, as is the case with all our commercial agreements, enable us to provide enhanced support to our 211 FIFA member associations across the globe.”
The FIFA-Aramco partnership marks the kingdom’s latest high-profile investment in global sports. This includes billions of dollars spent across tennis, heavyweight boxing, Formula 1, golf, horse racing, and football. Saudi Arabia also purchased English Premier League team Newcastle United through its sovereign wealth fund, accrued more than 300 sponsorships across sports, and has all but secured the rights to host the 2034 FIFA World Cup.
"Through this partnership with FIFA we aim to contribute to football development and harness the power of sport to make an impact around the globe," Aramco CEO Amin H. Nasser said.
"It reflects our ambition to enable vibrant communities and extends our backing of sport as a platform for growth."
So how did a major Saudi oil company emerge as a dominant force in sports?
Aramco traces its origins to the signing of the “Concession Agreement” between the Kingdom of Saudi Arabia and the Standard Oil Company of California in 1933—an agreement which laid the foundation for the exploration, production, and exportation of oil in the region.
The company’s early years were marked by significant milestones, including the discovery of the first commercial oil field in Dhahran in 1938—the aptly named “Prosperity Well.” Six years later, the company name was changed to the Arabian American Oil Company (Aramco), and by the 1950s, Saudi Arabia had gained full control of its oil resources. By 1980, the Saudi government had officially acquired 100% ownership of Aramco.
In December 2019—nearly 40 years after the kingdom attained 100% ownership of the oil giant—Saudi Aramco made headlines with its record-setting initial public offering (IPO). Saudi Aramco sold 1.5% of the company (3 billion shares) on the Saudi Tadawul stock exchange, giving the company a market capitalization of approximately US$1.88 trillion, which made Saudi Aramco the world’s largest listed company.
At the time, sources told the Financial Times that some of the wealthiest families in Saudi Arabia were “bullied” and “strong-armed” into joining the Saudi Aramco IPO to boost its overall market capitalization.
Since then, Aramco has emerged as a major player in the global sports landscape. A recent study by Stanis Elsborg for Play the Game, an initiative run by the Danish Institute for Sports Studies (Idan) that aims to raise the ethical standards of sport, revealed that Aramco directly sponsors at least 17 tournaments and leagues, including the International Cricket Council (ICC), the Indian Premier League, the Houston Half Marathon and the T20 World Cup. The oil giant is also heavily invested in Esports, having sponsored the Formula 1 Esports, Gamers Without Borders, and Gamers8 events.
Aramco also sponsors a range of local events, including the Diriyah Tennis Cup, as well as the Aramco Saudi Ladies International, Aramco Team Series, and PIF Saudi International golf tournaments. The oil giant also owns Al-Qadsiah FC, a football club based in the eastern city of Khobar, which is located near the oil company’s headquarters.
Much of Aramco’s recent foray into sports is being spearheaded by Yasir Al-Rumayyan, who serves as the chairman of the oil conglomerate, as well as the governor of the Public Investment Fund, one of the richest sovereign wealth funds in the world with more than $650bn in assets. He is also the chairman of Newcastle United and the driving force behind Saudi’s attempted takeover of the PGA Tour.
However, Saudi’s growing influence in the world of international football lies in FIFA president Gianni Infantino, who has built close ties to kingdom and its crown prince and de facto ruler Mohammed bin Salman since before the 2018 World Cup—a tournament which was sponsored by state-owned oil firm Gazprom.
Since then, Saudi Arabia has continued to expand its investments throughout the beautiful game. Visit Saudi was a third tier sponsor for the 2022 World Cup in Qatar, though a planned sponsorship deal for the 2023 World Cup in Australia and New Zealand fell through following public outcry and pushback. Later that year, Saudi Arabia was confirmed as the sole bidder for the 2034 World Cup.
Now, Saudi has managed to secure one of the largest sports advertising platform available, spreading Aramco’s name, image and influence around the world, during multiple game broadcasts for over a month. With each match aired, Saudi Arabia subtly reinforces its presence and power on the world stage—a boon for a kingdom known for leveraging sports as a means for soft power and statecraft.
Aramco’s status as FIFA’s worldwide partner is yet another power symbol of Saudi Arabia’s influence over the sporting world. However, what it achieves beyond that remains to be seen.
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