Saudi Arabia’s Public Investment Fund (PIF) has invested extensively in electric racing leagues, including tournaments for cars, SUVs, and boats. This initiative is a part of Saudi Arabia’s broader strategy to expand its influence in the media sector and enhance its eco-friendly image. The PIF, with a valuation of $700 billion, holds substantial shares in various companies led by racing entrepreneur Alejandro Agag Longo. These include Formula E Holdings Ltd., the off-road electric SUV racing venture Extreme E, and the electric hydrofoil competition series E1, as indicated by recent filings.
The PIF’s involvement in sports investments is becoming increasingly noticeable, spanning various fields such as golf, soccer, and boxing. This pattern highlights Saudi Arabia’s efforts to cultivate cultural influence and transition towards a diversified economy beyond oil.
Jeff Dodds, CEO of Formula E, acknowledges the potential value Saudi Arabia could bring as an investor for the electric racing series. Formula E, currently co-owned by Warner Bros Discovery Inc. and Liberty Global Plc, is open to strategic partnerships to expedite growth and reach new markets and audiences, especially with its 10th season underway.
Dodds mentioned that Saudi Arabia’s interest in sports, sustainability, and innovation aligns well with Formula E, and discussions for potential collaboration are plausible. The upcoming races of the championship are scheduled to take place in the Saudi city of Diriyah.
The PIF, as of January 2023, owns 5.5% of Formula E’s B-preferred shares and 9.6% of its ordinary shares, which were acquired in February 2020 and are valued at €6.3 million ($6.9 million). In Extreme E Hong Kong Holdings Ltd., PIF holds all preferred A ordinary shares, representing 55% of the company’s total share value as of September 2023, amounting to €50 million. Additionally, PIF possesses 50% of the total shares in Electric Sea Racing Ltd., known as E1, according to UK accounts.
