Key Takeaways
- The Saudi Fund for Development will allocate up to $1 billion in concessional loans for stadium construction and rehabilitation in developing countries
- The program targets FIFA Member Associations in nations with strategies to use sport for national development
- The global sports economy contributes nearly 2% of world GDP, according to independent reports cited in the FIFA announcement
- Saudi Arabia will host the 2034 Men’s World Cup and has existing FIFA sponsorship ties through Aramco
- SFD has funded over 800 development projects totaling more than $22 billion across 100 countries over five decades
What the Agreement Includes
The Saudi Fund for Development and FIFA signed a Memorandum of Understanding on November 24 in Zurich. The agreement establishes a framework for up to $1 billion in concessional loans to FIFA Member Associations for stadium construction and enhancement to meet FIFA certification standards.
According to the FIFA announcement, the program will prioritize developing nations with clear strategies to use sport for national development. Projects will include essential surrounding infrastructure beyond the stadiums themselves.
“This agreement is a crucial step in ensuring our FIFA Member Associations have the facilities to make football truly global,” said FIFA President Gianni Infantino.
How the Financing Structure Works
SFD will provide concessional loans, which offer below-market interest rates to make borrowing more accessible for developing economies. The FIFA announcement states the initiative will combine SFD’s development financing with FIFA’s technical expertise on stadium requirements.
The program is designed to function as seed financing. According to the announcement, the structure aims to attract additional investment from other development institutions, private-sector partners, and regional organizations.
Sultan bin Abdulrahman Al-Marshad, CEO of SFD, stated: “Through concessional financing, we are helping countries build the infrastructure they need to unlock potential, empower young people, and strengthen communities for generations to come.”
Saudi Arabia’s FIFA Involvement
This agreement expands Saudi Arabia’s existing relationship with FIFA. The kingdom will host the 2034 Men’s World Cup, and Saudi state oil company Aramco is a sponsor of the 2026 World Cup.
According to ESPN, Saudi Arabia’s Public Investment Fund has funded the LIV Golf project and sponsored major boxing events. FIFA announced a global broadcast deal with streaming service DAZN for the Club World Cup in December 2024. ESPN reported that a $1 billion Saudi investment in DAZN was confirmed several weeks after that announcement.
Facility Goals and Community Focus
The FIFA announcement describes the intended facilities as “hubs for community life, education, and inclusion.” According to the release, the new venues will provide “young people safe and modern spaces to convene, train and compete.”
The announcement cites the global sports economy’s contribution of nearly 2% of world GDP as evidence of the sector’s role in employment, tourism, and community development. FIFA noted that among its 211 Member Associations worldwide, “the gap between nations with world-class facilities and those without remains wide.”
What Remains Undefined
The MoU establishes a framework, but specific details have not been disclosed. These include project timelines, participating nations, individual loan terms, and selection criteria for qualifying projects.
via: Inside Fifa / ESPN
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