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The Inter Milan – Saudi partnership is not a new thing as both parties have on and off discussed investment, partnership and long-term engagement.
This has also included Inter Milan negotiation for a buy out with Inter Milan former owners, the Chinese Suning family.
As of October 2024, Inter Milan is making headlines with its announcement of establishing a regional office in Riyadh, Saudi Arabia making it the first global football club to do so.
This significant move, enabled by an investment license from the Saudi Ministry of Investment, marks a pivotal step in the club’s strategy to deepen its roots in the Middle Eastern market, a region ripe with potential.
While it known that Serie A is actively seeking more robust partnership with the Gulf Countries, including the Serie A establishment of a regional office in Abu Dhabi in 2022, no individual team has done what Inter Milan just did.
The Inter Milan Strategic Expansion & Partnership Saudi Arabia: A New Era of Global Football Ties
The Saudi Public Investment Fund (PIF), with $925 billion in assets under management, is the 6th largest in the world.
Over the last 10 years, the fund has been promoting an assertive investment and acquisition strategy across sectors. As well as across the globe.
However, as oil prices tumble despite ongoing conflicts in the Middle East, PIF is recalibrating its investment strategy with a strong focus on the Mega Cities project, which includes the development of NEOM, estimated to cost a total of $1.5 trillion.
The Kingdom needs to demonstrate concrete impacts on its economic diversification away from oil and gas.
Especially as its young population—80% of which is under 35—will expect results and new economic prosperity across tourism, sports, entertainment and technology.
Having said that, football seems to be an area where the Kingdom and its investment arm, PIF, show selective continuity.
The recent partnership development with Inter Milan is a case in point.
The Importance Of The Saudi Market
Saudi Arabia is rapidly emerging as a crucial player in global sports.
With one of the fastest growing economies in 2022, and a passionate fan base, the country represents a vast market for sports franchises looking to expand their global reach.
Under PIF leadership, the Kingdom has already invested about 2.5 billion dollars over the last 5 years.
This included the acquisition of Newcastle football team. As well as the investment in stadiums and the acquisition of top world football players such as Ronaldo, Benzema and Neymar and coaches such as Mancini.
Inter Milan as a team lead by new financial powerhouse Oaktree Capital, recognizes the Saudi partnership opportunity.
Particularly with the backing of the Saudi government, which is actively promoting sports as part of its Vision 2030 initiative.
By establishing a presence in Riyadh, Inter Milan not only positions itself to tap into this lucrative market but also aligns itself with Saudi Arabia’s broader cultural and economic aspirations.
Potential Partnerships With The Public Investment Fund
Another layer to this strategy is the potential for future partnership with Saudi Arabia’s Public Investment Fund (PIF).
The PIF has been increasingly active in sports investments. They could see Inter Milan as a valuable additional asset to its global portfolio.
As the club enhances its brand and fan engagement in the region, the possibility of attracting PIF or one of the Al-Saud family office billionaires as a future investor or even an acquirer becomes more tangible.
Youth Development & Cultural Engagement
Inter Milan’s commitment to youth development is a key pillar of its expansion strategy.
The launch of its first academy in Jeddah, Saudi Arabia in partnership with World Sports, highlights the club’s dedication to training local talent and fostering a national sporting culture.
CEO Alessandro Antonello emphasized the importance of this initiative. He stated that the investment license supports the club’s growth.
But added that it also contributes to the development of the sports sector in Saudi Arabia.
Vice President Javier Zanetti echoed this sentiment, noting the overwhelming enthusiasm among Saudi youth for the club.
With more than 5 million Arabic-speaking fans on social media, Inter Milan is well-positioned to engage with its burgeoning fanbase. In order to solidify its presence in the region.
A Bright Future Ahead For Inter Milan & Saudi Partnership
Inter Milan’s move into Saudi Arabia is a strategic decision. It is one that reflects a broader trend of football clubs seeking to globalize their brands.
And also to connect with new markets with young consumers.
By leveraging the Kingdom’s economic potential and aligning with its Vision 2030 for sports development, Inter Milan is positioning itself for success.
As the club strengthens its ties in Saudi Arabia, fans can expect exciting developments that could reshape international football.
And which further solidify Inter’s status as a global brand beloved in the Arab world.
This strategic expansion benefits the Milano based club.
And it also signals a deeper relationship between European football and the Middle East. This paves the way for future investments between Italy and Saudi Arabia.
As also witnessed in the Italy-Saudi summit of 2023. These collaborations that could redefine the world of sports.
By: Andrea Zanon
Andrea Zanon is the co-founder of Confidente. He is an international advisor who has worked for financial institutions and entrepreneurs on sustainability, international affairs and development.
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