Saudi Arabia spends billions to attract stars and esports – 06/16/2023 – Market

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Why does Saudi Arabia spend billions on games and sports?

Money is not a problem for Saudi Arabia, image is. The solution found to try to resolve this is to spend the billions it accumulates.

The kingdom spends a fortune on subsidies to attract multinationals and moves figures as large or greater to host game companies and major sporting events.

In numbers: The funds come from Fund Investment Public (FIP), a fund whose net worth is estimated at $650 billion (R$ 3.1 trillion) and is chaired by the crown prince, Mohammed bin Salman.

in gamesthe budget is $38 billion (BRL 183.2 billion) for Saudi Arabia to become the main global center for esports in up to seven years, according to the Financial Times.

• There were almost US$ 8 billion (R$ 38.5 billion) in the last 18 months in acquisitions and increase of participation in global companies, such as Nintendo, Activision Blizzard and Ubisoft.

in sportsthe most recent move came last week when Saudi Arabia-backed LIV Golf announced a merger with US rivals PGA Tour for around $3 billion (BRL 14.4 billion).

Which explains: Officially, the Saudi kingdom says it is looking for ways to diversify its revenues, currently very focused on oil, a fossil fuel that should lose strength in the future.

But critics say the strategy is a process of cleaning up the country’s image worldwide. The strategy of using sport for this is old and classified by scholars as “sportswashing”.

• “It’s when a political leader uses sport and events like the World Cup to try to prove himself legitimate and improve his reputation,” says political scientist Jules Boykoff, 52 (here he talks about how Qatar did this with the World Cup);

• “What he wants is to divert attention from real chronic problems, such as the violation of human rights”, he explains.

Saudi Arabia is remembered for cases of aggression against human rights and executions, such as that of journalist Jamal Khashoggi, in 2018. The CIA accuses Bin Salman of having ordered the assassination. He denies it.

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Santos Dumont vs Galeao

The Lula government agreed this Wednesday (14) to restrict flights at Santos Dumont airport in order to transfer part of the operation to Galeão international airport.

The statement is from the mayor of Rio de Janeiro, Eduardo Paes (PSD), who predicts that the change will start from January 2024.

Understand: Santos Dumont should only take the air bridges from Rio to São Paulo and from Rio to Brasília. The other domestic flights would be transferred to Galeão.

Which explains: The dispute involving traffic between the two airports is not new and last year it even led to a request for the return of Galeão by the concessionaire, which is controlled by Changi, from Singapore.

• In 2022, Santos Dumont received 10.17 million of travelers, almost twice as much as the international terminal (5.7 million).

local authorities advocate that traffic be directed to Galeão, which has been emptied, so that it can attract more flights from abroad.

Users complain about access to the airport, which is done through routes such as the Red Line. The reports are of traffic jams and a feeling of insecurity due to cases of violence in the region.

• Santos Dumont is close to companies in downtown Rio and tourist attractions in the south zone.

among the expertsthe subject divides opinions, as shown by a report by Sheet in February.

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