Saudi Arabia Expands Golf Presence Despite LIV Golf Pullback with Five Iron Golf Launch

In late April, indoor golf and entertainment brand Five Iron Golf launched its first location in Saudi Arabia after nearly three years of coordination with Golf Saudi, an affiliate of the country’s sovereign wealth fund, the Public Investment Fund (PIF).

The golf center, located on the ground floor of the PIF Tower—the fund’s headquarters and the tallest building in Riyadh—offers a mix of simulators, leagues, lessons, food, and music, mirroring other Five Iron locations in the U.S. and abroad, according to Jared Solomon, cofounder and CEO of the brand.

“People are hitting golf balls, they’re having fun, they’re eating food. They’re not drinking, because there’s no drinking there, but they’re having a great time.”

Five Iron Golf, which launched in Manhattan in 2017 (the name references both the golf club and Fifth Avenue in the Flatiron District), now operates over 40 venues across the U.S. The company has expanded internationally through franchise agreements in Singapore, Dubai, Spain, and Portugal. The Saudi location was established under a similar franchise deal with Golf Saudi.

Solomon declined to disclose specific financial terms but noted that typical franchise agreements include fees ranging from $50,000 to $100,000 per location, along with a 6% revenue share. He expressed optimism that the PIF Tower site could serve as the first of multiple locations in Saudi Arabia.

Saudi Arabia’s Golf Strategy Shifts: PIF Ends LIV Golf Funding

The Five Iron launch followed a major announcement from the PIF in spring 2024: the fund would no longer finance the LIV Golf tour, which has received over $5 billion in PIF backing since its 2022 debut. In a widely circulated statement, the PIF cited a misalignment with its current investment priorities and “current macro dynamics.”

The decision comes amid the LIV tour’s disruptive impact on the golf world, luring players away from the PGA Tour, which responded by banning athletes from competing in both circuits.

Saudi Vision 2030: Diversifying Beyond Oil Through Sports and Entertainment

The PIF’s golf-related moves reflect broader ambitions under Saudi Vision 2030, Crown Prince Mohammed bin Salman’s plan to transform the kingdom’s economy by investing in sectors like sports, tourism, and entertainment to reduce reliance on oil. The PIF, Saudi Arabia’s sovereign wealth fund, has deployed capital across global ventures, including major stakes in companies like Uber and Magic Leap, as well as through the $100 billion SoftBank Vision Fund.

The fund is also set to acquire a significant stake in the merged Paramount-Warner Bros. Discovery media business. Beyond golf, Saudi Arabia is positioning itself as a global sports and entertainment hub, with plans to host the 2034 FIFA World Cup and a 2030 world’s fair-style expo. The PIF has also reaffirmed its commitment to Newcastle United Football Club, maintaining its majority ownership of the Premier League team.

These investments are not solely economic; they are part of a broader effort to reshape Saudi Arabia’s international image, which has faced scrutiny over human rights concerns, restrictions on women’s rights, and the 2018 murder of journalist Jamal Khashoggi.