Saudi-backed developer seeks World Cup Stadium investors

DUBAI — Saudi Arabia's ROSHN Group is seeking investors for its Aramco Stadium, one of the venues for the 2034 FIFA World Cup, as the state-backed developer looks to raise capital for other projects tied to the kingdom's Vision 2030 economic transformation program, according to three sources familiar with the matter.

The fundraising effort comes as Saudi Arabia faces a widening budget deficit, prompting state-owned entities to seek private investment to help finance major infrastructure, tourism and sports developments aimed at reducing the country's dependence on oil and gas revenue.

ROSHN, which is owned by the Public Investment Fund (PIF), has hired JPMorgan to oversee the equity fundraising process, two of the sources said. A third source said both PIF and ROSHN have been sounding out private investors about potential interest in the stadium.

JPMorgan and Saudi Aramco declined to comment. ROSHN and PIF did not immediately respond to requests for comment.

The Aramco Stadium is expected to be completed by the end of 2026 and host its first sporting event in January 2027. The 47,000-seat venue in Al Khobar is among the stadiums being prepared for the 2034 FIFA World Cup.

Saudi Aramco will operate the stadium under a 25-year concession agreement, while ROSHN remains the owner and developer of the project.

According to the sources, the proposed transaction is expected to follow a lease-and-leaseback structure similar to financing arrangements previously used by Aramco for its oil and gas pipeline assets.

Under the plan, ROSHN would create a special-purpose vehicle to hold the leasehold interest, with private investors taking a stake in the entity. Investors would provide upfront funding in exchange for a share of the long-term lease payments made by Aramco.

The structure would allow ROSHN to unlock capital from the stadium project while retaining ownership, giving the developer additional funding to support other developments across Saudi Arabia.

The financing model resembles previous infrastructure deals that attracted investors such as EIG Global Energy Partners and Global Infrastructure Partners, now part of BlackRock.

Sports investment has become a key component of Saudi Arabia's Vision 2030 strategy, with the PIF investing heavily in soccer, Formula E, boxing, tennis and esports.

The kingdom plans to build or renovate 15 stadiums in five cities, along with 132 training facilities, for the 2034 FIFA World Cup. The tournament will be the first World Cup hosted by a single country under the expanded 48-team format.

Despite the ambitious plans, Saudi Arabia has faced financial pressure from lower oil prices and rising government spending, resulting in delays to several flagship projects, including the Trojena mountain resort within the NEOM development.

As a result, the government has increasingly turned to private investors to help fund major projects. The proposed Aramco Stadium transaction follows other privatization efforts, including Kingdom Holding Company's acquisition of a majority stake in Saudi Pro League club Al Hilal and the sale of Al Kholood to an American investor.

Reuters also reported in May that the PIF had been in talks with investors about selling a minority stake in Newcastle United as part of plans to finance improvements to the club's stadium. -Reporting by Hadeel Al Sayegh and Federico Maccioni in Dubai; Additional reporting by Timour Azhari in Riyadh; Editing by Elisa Martinuzzi and Joe Bavier/Reuters