In a bid to expand its media influence and bolster its environmental commitments, Saudi Arabia’s Public Investment Fund (PIF) has invested heavily in the electric motorsports industry. This includes supporting competitions for a variety of electric vehicles such as cars, SUVs, and boats.
The PIF, a sovereign wealth fund with assets worth approximately US$700 billion, has acquired significant shareholdings in ventures spearheaded by racing entrepreneur Alejandro Agag Longo. These include stakes in Formula E Holdings Ltd, the off-road electric SUV racing initiative Extreme E, and the E1 electric hydrofoil series. Official documents confirm these investments.
The bustling waters of Hong Kong’s Victoria Harbour are set to serve as the backdrop for the E1 World Championship in November. Financial records from the UK reveal the PIF’s ownership of half the shares in Electric Sea Racing Ltd, the entity behind E1.
As of the start of 2023, the PIF’s holdings in the Hong Kong-headquartered Formula E comprised 5.5 percent of B-preferred shares and 9.6 percent of ordinary shares. The fund became a shareholder in February 2020 with an investment valued at €6.3 million (US$6.9 million).
Within Extreme E Hong Kong Holdings Ltd, PIF controls all the preferred A ordinary shares. This translates to a 55 percent share of the company’s total value as of September 2023, representing a €50 million investment according to a separate filing.
These strategic investments are part of the PIF’s broader involvement across various sports, ranging from golf to soccer to boxing. This trend illustrates the nation’s effort to cultivate cultural influence and transition towards a diversified, non-oil dependent economy.
Jeff Dodds, CEO of the Formula E series, considers the country a potential source of future investments for the all-electric motorsport league. With the franchise entering its 10th season, owners Warner Bros Discovery Inc and Liberty Global Plc are seeking strategic partners to enhance the series’ growth and reach new markets and audiences.
Dodds acknowledged the solid relationship with Saudi Arabia and expressed willingness to discuss potential investments with the PIF, especially since they share interests in sports, sustainability, and innovation. He highlighted this during an interview at the series’ London office. The upcoming races in the championship are scheduled to take place in the Saudi Arabian city of Diriyah.
However, the PIF has refrained from commenting on these investment activities.