Alejandro Agag takes the next step with “Electric 360” and signs sponsorship deal with Saudi Arabia for Formula E, Extreme E and E1
Alejandro Agag, the pioneer of electric racing, has announced a sponsorship deal with the Saudi Arabian Public Investment Fund (PIF) to strengthen the Formula E World Championship and bring stability to the fledgling Extreme E (electric off-road cars) and E1 (electric powerboats) racing series. The PIF calls this program “Electric 360”, indicating that it encompasses all three electric racing series.
No pricing has been disclosed for the contract, but sources say it is for several years and several million dollars. In addition to the prominent PIF branding, there will be activation activities at all races in the three championships.
The activities will focus primarily on education, targeting Saudis in their own country as well as the public in the countries visited by each race series. There will be a program of events with leaders around sustainable mobility, STEM initiatives around the world and community education programs.
Speaking exclusively to Motorsport.com, Agag says that although Formula E has been racing in Saudi Arabia since 2018, the idea for the Electric 360 sponsorship deal was only six months in the making. “It’s huge for us,” he says. “There’s a lot of stability and support, especially for the two smaller projects, because Formula E is already very strong.”
“But for Extreme E and E1, it’s much more viable and secure for the future if they have a big partner like this by their side,” Agag said, adding: “It’s very difficult to set up racing series and keep them going. We have managed to do it not just with one, but now with three. And I hope that this ‘360’ partnership is not the last of its kind that we do. For the partners, this is a really great idea to support electric racing across the board.”
Saudi Arabia has made great strides in sport over the past five years as part of the Vision 2030 project. The project aims to eliminate dependence on oil, which accounts for 40 percent of the country’s gross domestic product (GDP). Saudi Arabia is the world’s second largest oil producer after the USA.
Most of the major international motorsport series have been brought to Saudi Arabia, world championship boxing matches have been held and top footballers have been brought to Saudi Arabian teams. Investments have also been made in sports outside Saudi Arabia, particularly in golf with the LIV project and in soccer with Newcastle United in the English Premier League.
Agag believes that critics outside Saudi Arabia do not fully understand the motives behind this aggressive push into sport, believing it is about improving the country’s international image.
“I think their sporting ambitions can be described in two words,” says Agag. “They are very ambitious, but also very rational. According to a rational scheme of growth, they want to be active in different sports. They also want sports that bring something to the Saudis. The crown prince said in an interview with Fox a few months ago that sport had already contributed one percent to Saudi Arabia’s GDP. And it was assumed that sport would contribute a further 1.5 percent to GDP.
“I think people are wrong when they say they are making all these sports investments to improve their image or whatever. They want to put on the best show for their own people at home. They want to bring car racing to Saudi Arabia. They want to bring soccer to Saudi Arabia to give their own audience the best entertainment and the best sport so they can watch it at home. I think this is a great way to move a country forward that is going through immense change,” said Agag.
Saudi Arabia’s gross domestic product is currently 1 trillion US dollars, so a 2.5 percent share of that value from sport would be 25 billion US dollars. This is roughly the same percentage of GDP that sport accounts for in France and the European Union as a whole. Another important reason for investing in sport is the fact that the country has a population of 36 million people, 63 percent of whom are under the age of 30.
Mohamed Al-Sayyad, Head of Corporate Brands at PIF, says: “At PIF, we believe in the power of partnerships and invest in innovative collaborations as part of our focus on ‘Investing in Better’. These partnerships will improve people’s quality of life, provide opportunities for the communities we serve and help continue our work as a catalyst for change.”
“Together with these racing series,” said Al-Sayyad, referring to Formula E, Extreme E and E1, “Electric 360 will redefine electric racing and fuel its growth by delivering tangible impact in line with our broader business strategy. At the same time, PIF is driving new green technological innovations that will form the cornerstone of future electric mobility.”