The mixed martial arts (MMA) sector in the Gulf region is tipped to become a global leader over the next few years, fuelled by the surging popularity of the fighting sports in the region – as well as globally – coupled with growing investor interest in MMA companies, industry insiders said.
The region’s MMA sector is expected to hog global limelight soon, with Bahrain-based BRAVE CF, emerging as the most popular MMA companies globally, is currently learnt to be seeking investments from high-profile international investors.
Industry insiders said considering the current standing of BRAVE CF in the global MMA circles, the promotion company could expect to get ‘big billing’ from leading investors – regional as well as international.
While restraining from a direct comment on whether it is seeking investments currently, BRAVE CF President Mohammed Shahid told Arabian Business: “Today BRAVE CF is one of the largest investment opportunities in the Middle Eastern MMA market, thanks to the investments into international organisations from the region.”
“The MMA industry today is the biggest sports business in the Gulf region and I am sure BRAVE CF being the largest sports development initiative in the MMA business, with the largest market share in Asia and the biggest global brand for Middle East MMA, we will see a huge opportunity for the investors to join together with BRAVE CF,” he said.
Shahid also expressed the confidence that BRAVE CF, along with a clutch of prospective global investor biggies, can jointly grow this market into one of the biggest markets in global MMA in a very short time.
Saudi Arabia’s investment triggers attention to MMA industry in the Gulf
The MMA sector in the Gulf sector drew big time global attention recently, following Saudi Arabia making its first move into the sector with the Riyadh-based private equity (PE) firm SRJ Sports Investments pumping in more than $100 million to acquire a minority stake in Professional Fighters League (PFL), the US-based leading MMA company.
Armed with the Saudi investments, the Washington-based PFL, in turn, bought its American rival Ultimate Fighting Championship (UFC).
The Saudi PE firm’s investment in PFL, however, came in for criticism, with UFC’s president and chief executive Dana White reportedly commenting that the league was “burning cash”.
The UFC has so far been the major beneficiary of the growing popularity of mixed martial arts globally, generating about $1.1 billion in revenue in 2022. Last month Davis reportedly said his company raised about $500 million in its last financing round and was in “investment mode and growing mode”.
Meanwhile, PFL is said to be gearing up for a major expansion which will include recruiting top fighters and building its fan base, using the $100 million capital inflow from SRJ.
SRJ’s deal for a minority ownership stake in the PFL will also see it becoming an investor in the new ‘PFL MENA’ regional league, which is due to launch in 2024, according to a report in Financial Times.
The investment company will also support PFL’s expansion in Saudi Arabia and the wider Middle East and North Africa (MENA) region.
Additionally, SRJ and the PFL will develop and host the ‘PFL PPV Super Fights’ series of events in the kingdom, with Saudi Arabia also reportedly underwriting a ‘substantial’ number of PFL PPV events in the coming years.
Saudi Arabia’s interest in combat sport comes close on the heels of its reported move to invest in India’s popular short-form cricket league, IPL (Indian Premier League).
Investment interest nudges BRAVE CF to draw up aggressive expansion plans
Apparently inspired by the Saudi move to enter the MMA sector, BRAVE CF is drawing up a major expansion in its global plans in the coming years.
The Bahrain-based company, which has set a record of sorts by hosting tournaments in about 30 countries around the world, is gearing up to take its fighting tournaments to more countries, with a significant expansion in its 2024 event calendar.
“I am personally excited to witness the next five years of MMA growth in the region as it is going to be one of the biggest growth in the Middle East sports industry and mixed martial arts industry worldwide,” Shahid said.
He said BRAVE CF and Bahrain’s martial arts organisation KHK MMA since 2015 was focused on creating a sports economic structure for MMA in the Middle East.
“So far, we have been focusing on making the Gulf region the hub of world championships for the most successful international governing body for MMA (IMMAF), and also providing a global platform to showcase the Middle Eastern fighters like Jarrah Silawi, Mounir Lazzes, Hamza Kooheji, Othman Azaitar, Mohammed Fakhreddin and Amir Al Abazi to name a few,” Shahid said.
The BRAVE CF top honcho, however, said from a business standpoint, the company has shown that a sports media property founded in the Arab world can become a global brand that is exported to 29 countries excluding Bahrain.
“We believe this case study has had a major impact in the growing interest in investment from the region into MMA brands.
“The investment into MMA is going to complement the whole industry growth in the Middle East, which, in turn, also means that the market share gets bigger and the opportunity for the early organisations are growing,” Shahid said.
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