FIFA strengthens bonds with Saudi Arabia, secures Aramco as World Cup sponsor

FIFA recently solidified its relationship with Saudi Arabia by announcing a sponsorship deal with the kingdom’s state-owned oil company Aramco, which reported profits of $121 billion last year. The partnership became expected after Saudi Arabia was nearly confirmed in October as the host for the 2034 Men’s World Cup.

The agreement, which runs until 2027, covers the 2026 Men’s World Cup hosted by the United States, Canada, and Mexico, as well as the 2027 Women’s World Cup, the host of which will be determined next month in a vote among three candidates. While the exact financial terms of the Aramco deal were not disclosed, it is presumed to be one of FIFA’s most lucrative in terms of average annual value. It’s unclear if next year’s inaugural 32-team Club World Cup in the U.S. is included under this deal or another.

FIFA stated that the partnership aims to use football’s global appeal to launch significant social initiatives worldwide. This Saudi sponsorship is set to significantly boost FIFA’s revenue for its 2023-26 commercial cycle, which was cautiously projected at $11 billion. For context, revenue from the last cycle, tied to the 2022 World Cup in Qatar, totaled $7.5 billion, including broadcasting, sponsorship, and ticket sales.

FIFA President Gianni Infantino has nurtured strong connections with Saudi Arabia and its Crown Prince Mohammed bin Salman since before the 2018 World Cup, which was sponsored by Russian state energy firm Gazprom. These ties persisted despite controversies such as the 2018 murder of Saudi journalist Jamal Khashoggi and accusations of “sportswashing” aimed at improving Saudi Arabia’s global image.

The process to select the 2034 World Cup host was accelerated last October in a move that appeared tailor-made for Saudi Arabia. It coincided with a tri-continental arrangement for the 2030 World Cup to be hosted by several countries across Europe and South America. Saudi Arabia emerged as the sole candidate for 2034, with formal approval from FIFA’s member federations expected later this year.

These federations are set to receive increased payments from FIFA leading up to the Saudi-hosted World Cup. FIFA’s development program currently offers up to $8 million over four years to each federation, with additional funds available for specific projects.

After the 2022 Qatar World Cup, FIFA had $4 billion in reserves, with Qatar Energy as a major sponsor. The Visit Saudi tourist board also sponsored the tournament in Qatar, although a deal for the 2023 Women’s World Cup was terminated following pushback from the host countries, Australia and New Zealand, citing concerns over gender equality.

Saudi officials highlight the rapid changes in their country as part of Vision 2030, a sweeping modernization initiative led by the Crown Prince. Sports and entertainment are vital aspects of this plan, with significant investments such as the LIV Golf tour and the acquisition of English Premier League club Newcastle. Moreover, the Saudi domestic league has attracted stars like Cristiano Ronaldo and Neymar with substantial salaries, following the nationalization of clubs by the Public Investment Fund, chaired by the Crown Prince.