The Saudi Pro League club confirmed the appointment on their official website, bringing an end to speculation over Hughes's next move after he stepped down at Anfield following the summer transfer window.
Hughes, 47, joined Liverpool from Bournemouth in the summer of 2024 and was tasked with steering the club through the post-Jürgen Klopp era. He was instrumental in appointing Arne Slot, who delivered the Premier League title in his first season in charge, and later recommended Andoni Iraola as Slot's successor after working with the Spaniard during his time at Bournemouth.
During his spell as sporting director, Hughes oversaw heavy investment in the Liverpool squad, sanctioning the signings of Alexander Isak, Florian Wirtz and Bradley Barcola among others.
He also negotiated the departures of several first-team players, though Mohamed Salah, Andy Robertson and Ibrahima Konaté all left on free transfers during his tenure, a point that has drawn scrutiny from supporters.
His exit comes two years into a three-year contract at Anfield. In a statement released by Liverpool, Hughes reflected on his time at the club: "I'll always follow and support the club with great affection, and I wish everyone involved nothing but success for this season and beyond."
He added: "My appreciation extends to ownership for their support and leadership, to club staff at all levels who give so much to make Liverpool FC what it is, to the players who make such an enormous contribution and to the fans who support the team in great numbers whenever and wherever games take place."
Hughes arrived at Anfield after a decade in Bournemouth's football operations department, where he worked closely with Iraola before the Spaniard's move to Merseyside. In total he oversaw close to £700 million in transfer spending across four windows at Liverpool, including nine-figure fees for Wirtz and Isak, though he leaves with several key contracts, including that of captain Virgil van Dijk, entering their final year.
Liverpool have not yet named a replacement, with FSG president Mike Gordon leading the search for Hughes's successor, while other members of the club's football operations staff continue to oversee transfer strategy in the interim.