Saudi Arabia has invested its oil fortunes in all sports across the world. Aston Martin, LIV golf, and Newcastle United are just some ways the wealthy Petro-state has parked its billions through the state-owned oil company Aramco. This practice is widely known as sports washing.
Lawrence Stroll has bonded with the Middle Eastern Kingdom with a lengthy agreement. Aramco has title rights in the Aston Martin F1 team and has signed a 10-year-long global partnership with F1 worth over $450,000,000.
However, it’s more than what meets the eye, as per Joe Pompliano. The investments are a way to improve the country’s image and promote the country as a center for business, and they are just getting started.
Why Saudi Arabia invested in Aston Martin?
Saudi Arabia uses sports to boost the country’s image and reduce their dependence on oil revenue. Thus, the Saudi PIF has invested billions into Aston Martin, Newcastle United, LIV Golf, WWE, and others in the last few years.
Formula 1 plays a crucial role in the nation’s portfolio. The sport has boomed in popularity worldwide, with the majority being young adults from the US. This is where Lawrence Stroll’s Aston Martin has stepped in.
The team has been on a roll since the start of the season. But the team in green has bigger ambitions of becoming a title contender by 2026. If the Silverstone-based team were to win a race or championship in the future, it would be a big win for their title partner Aramco.
Stroll has also allowed the Petro state to own a 10% stake in the F1 team. However, Saudi Arabia’s involvement is not limited to Aston Martin.
How Saudi Arabia Captured F1
In 2021, Saudi Arabia paid a huge sum to bring an F1 Grand Prix to Jeddah in 2021. The Kingdom signed a reported $65 Million a year deal to keep the Saudi Arabian GP in the F1 calendar for 10 years.
However, in F1, the nation has used its state-owned Aramco to project its soft power. Aramco becomes the sport’s 6th global partner alongside DHL, Emirates, Heineken, Pirelli, and Rolex as F1’s Global Energy partner.
The duo will experiment with sustainable fuel technology, allowing the sport to reach its net zero carbon emissions target by 2030. The company will also get naming rights to various races. According to Joe Pompliano, Formula 1 is set to receive over $450 billion from the country and Saudi Aramco through their long-term deals.
Saudi Arabia’s sovereign wealth fund has a 16.7% stake in Aston Martin. With its $650 million investment, it became its second-largest shareholder after Lawrence Stroll himself.
With Aston Martin, they can invest in their highly anticipated projects like the Valkyrie, the DBR22, and V12 Speedste. This shows how far the nation is willing to go to project itself as a soft power in sports and influence younger audiences.
