The Ministry of Sports has authorized clubs to invest in the land allocated to them and the facilities built on it for a period ranging from five to 20 years, depending on the nature of the project, to increase their financial revenue, provided they comply with the provisions of the regulations governing the investment of allocated land, which the Ministry established to regulate the investment process and to serve as a means of supporting the clubs in achieving their goals.
The Ministry of Sports has stipulated that investments must not affect club facilities and that no construction may take place on playing fields or areas designated for sports activities; furthermore, investment plans must be submitted to the Ministry for approval.
Each club is required to comply with a number of provisions and requirements pertaining to the submission of bids, the opening of bid envelopes, the review and awarding of bids, drafting contracts and setting their implementation periods, bank guarantees, investment returns, and operating costs. This also includes forming an investment committee consisting of five members: three members of the board of directors and two individuals with expertise in the field of investment.
The term of the investment contract is determined based on the nature of the project, following approval by the club and authorization by the Ministry of Sports. The club’s company has the right to invest in the land for five years for undeveloped land without erecting any type of structure, as well as existing facilities owned by the club and existing buildings and facilities vacated by investors, by installing billboards, vending machines, and the like, ATMs, and non-concrete mobile structures.
As for contracts with a maximum term of 15 years, sports centers, wedding halls, retail stores, and similar establishments; and for contracts with a maximum term of 20 years, the land may be used to develop projects such as hotels, residential apartments, large commercial complexes, and similar developments.
It should be noted that the Ministry of Sports has taken significant and rapid steps to attract investors and diversify revenue streams by providing more investment opportunities in the sports sector, It has approved the establishment of a number of club-affiliated companies to invest their resources, thereby stimulating the growth of the sports economy and increasing the clubs’ financial resources, in addition to offering a number of sites owned by the Ministry of Sports for investment.
