by Fifa has announced the creation of a partnership with a Saudi Arabian government agency, pledging up to $1 billion (£762 million) to fund the development of football infrastructure around the world.
The game’s global governing body said on Monday it had signed a memorandum of understanding with the Saudi Fund for Development that would see it offer concessional loans “for the construction and rehabilitation” of stadiums and other infrastructure. Under the agreement, developing countries will receive priority for all loans.
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A FIFA statement said the new partnership aims to “support national governments in the planning, financing and construction of modern multi-sport venues.”
FIFA President Gianni Infantino said the funding was needed to build stadiums that would allow countries to host FIFA-sanctioned tournaments. “Many of our FIFA member associations require additional support for the infrastructure required to host competitions,” he said. “This agreement is a crucial step in ensuring our FIFA member associations have the capabilities to make football truly global.”
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The agreement is just the latest addition to a burgeoning relationship between FIFA and Saudi Arabia. The Gulf state will host the men’s World Cup in 2034, while its state oil company Aramco became a “major global partner” of FIFA last year under a four-year agreement.
The Saudi Public Investment Fund (PIF), meanwhile, was an official partner of this summer’s Club World Cup, while its spin-off company Surj Sport Investment bought a $1 billion stake in streamer Dazn after paying $1 billion itself to acquire exclusive global rights to the Club World Cup. When a Saudi delegation visited Washington last week to meet with US President Donald Trump, Infantino was among the group that accompanied Crown Prince Mohammed bin Salman to the White House.
Fifa is a non-profit organization and its media director Bryan Swanson said in a recent letter to the Guardian: “The revenue [Fifa] The revenue generated is reinvested to drive the growth of football – men’s, women’s, youth – across FIFA’s 211 member associations worldwide. FIFA already distributes millions of dollars to its member associations each year through the FIFA Forward program. However, this money is largely used to cover the running costs of associations and to develop participation at national level, and it is understood that a different level of funding has been considered necessary for the development of stadiums and in particular national stadiums.”
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The Saudi Fund for Development has been operating since 1974. It provides loans to developing countries and has long focused its investments on infrastructure. Last year he gave $100 million to finance hydropower projects in Pakistan. According to a FIFA statement, the new agreement reflects a change in the Fund’s priorities, highlighting sports infrastructure as a core component of its development agenda and recognizing the sector’s unique ability to create jobs, boost tourism, promote health and strengthen community ties.
