Ministry to set up 4 firms for Al Hilal, Al-Nassr, Al-Ittihad, Al Ahli clubs

Saudi Arabia’s Ministry of Commerce approved the establishment of four companies: Al Hilal, Al Nassr, Al-Ittihad, and Al Ahli as closed joint stock companies to practice all commercial activities with a capital of SAR 100 million each.

The approval included that 75% of the capital of the companies will be in cash and 25% will be in-kind capital, which includes the existing club facilities, player contracts, and others, Al Eqtisadiah newspaper reported.

According to data available to Argaam, Prince Mohammed bin Salman, Crown Prince and Prime Minister, launched last June the investment and privatization project for sports clubs, after the completion of the executive procedures for the first phase.

The Ministry of Sports announced the clubs of the first track in the investment and privatization project for sports clubs.

It was also disclosed that four Saudi sports clubs, namely Al-Ittihad, Al Ahli, Al Nassr and Al Hilal will be transformed into companies, each of which is owned by the Public Investment Fund (PIF) and non-profit foundations for each club, Argaam reported.

According to the PIF, the fund will work with the Ministry of Sports to complete all statutory procedures to complete the transformation of clubs to their new structure as four independent companies to be established with each non-profit institution for each club.

The fund will own 75% of the fund in each club, while each non-profit sports organization - for each of the four clubs - will own the remaining 25%

Source : Argaam