They are the driving force behind a significant merger in the golf industry, own Newcastle United, and are sending some of the best footballers in the world to the Middle East. Here is a brief explanation of the Public Investment Fund (PIF) of Saudi Arabia in case you're not familiar.
It was established in 1971 as a massive national savings account for the Saudi Arabian government to use for investments. Due to the enormous sums of money Saudi Arabia has made from selling oil, there is a lot of money involved.
Recently, the PIF declared that it would take control of four Saudi League teams. Karim Benzema recently relocated, and legendary striker Cristiano Ronaldo already plays there. The Saudi league is exempt from the financial fair play regulations that apply to European football, so they are free to spend as much money as they want on personnel and salaries.
Last year, PIF funds were used to start LIV Golf, a new competition that angered the heads of golf's most prestigious tours, the PGA Tour and DP World Tour. Following months of legal action and verbal abuse, the other leagues declared their alliance with LIV in an effort to bring the sport together.
The PIF travels abroad and spends a lot of money. According to reports, more than 60% of the money is used to directly support projects in Saudi Arabia. The remaining funds are placed in other investments, like a £300 million purchase of Premier League team Newcastle United that gave the fund ownership of the organization.
In addition to having strict laws limiting what women can do, Saudi Arabia has been charged with numerous human rights violations. It has received harsh criticism for its anti-LGBT laws, which make homosexuality a capital offense, like other Middle Eastern countries. They've been charged with sportswashing, which is the practice of pouring millions of dollars into sports around the world to alter public opinion of the nation. Rory McIlroy, a professional golfer, said the golf merger has left him with "mixed emotions.".
After being named the nation's Crown Prince in 2017, Forbes magazine ranked Mohammed bin Salman Al Saud as the eighth most powerful person in the world in 2018. His approval of the killing of Saudi journalist Jamal Khashoggi, which Bin Salman has denied, was allegedly given by the United States, making him a controversial figure.
The official Saudi Arabian response when asked why they are investing in sport now is that they want to inspire more locals to do so. However, according to other reports, the purpose is to strengthen a bid to host a future FIFA World Cup for men.
