A company formed by Saudi Arabia’s sovereign wealth fund has acquired a minority stake in the United States’ Professional Fighters League (PFL) and will create a regional tournament as the kingdom’s sports investment push expands into mixed martial arts (MMA).

The value of the deal was not disclosed, but the Financial Times reported it was $100m.

Sport has been a major component of oil-rich Saudi Arabia’s efforts to rebrand as a global business and tourism destination under the Vision 2030 reform agenda pursued by Crown Prince Mohammed bin Salman, the PIF chairman.

Saudi Arabia has made major investments in recent years in golf, Formula One and football, with Saudi clubs signing top footballers such as Cristiano Ronaldo and Neymar.

But the flurry of deals and negotiations has also spurred allegations of “sportswashing” or using sports to distract from Saudi Arabia’s frequently criticised human rights record.