Saudi Arabia Boosts Investment in EA, Gaming, and Esports Industry
Saudi Arabia is making significant strides in the gaming, esports, and entertainment industries through major investments. This week, Electronic Arts (EA) revealed a $55 billion deal to privatize the company. The deal includes investments from private equity firm Silver Lake, investment firm Affinity Partners, and the Saudi Public Investment Fund (PIF).
Saudi Arabia’s Expanding Investment in Gaming
Saudi Arabia’s PIF is deeply involved in the gaming sector, acquiring stakes in various major companies. Recent acquisitions include:
- Niantic, the creator of Pokémon Go, through publisher Scopely.
- The Evolution Championship Series via Qiddiya Investment Company.
- ESL FACEIT Group, formed through merging two key esports organizations.
Over the years, the PIF has invested billions in well-known gaming companies such as Activision Blizzard, Capcom, and Nintendo. The fund also owns SNK, a fighting game studio, which some fans believe may have influenced the content of recent games.
Motivations Behind Investment
Saudi Arabia’s heavy financial commitment to gaming is part of a broader economic diversification strategy. The country aims to reduce its reliance on oil, which currently represents about 40% of its GDP. The PIF is projected to manage approximately $925 billion in assets.
The Role of the Savvy Games Group
Established in 2021, the Savvy Games Group is a pivotal player in Saudi Arabia’s gaming ambitions. Under the leadership of CEO Brian Ward, the group seeks to foster long-term growth in gaming and esports.
Mohammed bin Salman, Saudi Arabia’s Crown Prince, oversees the PIF and is reportedly passionate about gaming. The Savvy Games Group aims to attain leadership in the gaming industry by 2030 through aggressive investments and strategic acquisitions.
Future Aspirations
The Saudi PIF forecasts gaming revenue to exceed $300 billion by 2028. The country has established the Qiddiya Esports and Gaming District, which is part of a larger entertainment initiative in Riyadh. This district aims to attract 10 million visitors annually by 2030 and support the growth of 30 video game development companies.
Additionally, the National Strategy for Gaming and Esports sets ambitious goals, including:
- Incubating 250 gaming companies.
- Creating tens of thousands of jobs.
- Contributing $13.3 billion to the national GDP.
Controversies and Challenges
While these investments signal a push towards economic modernization, they have garnered controversy. There are allegations of “sportswashing” regarding Saudi investments in global sporting events, which aim to improve the kingdom’s image amid its human rights record. The viability of gaming in enhancing Saudi Arabia’s international reputation remains uncertain.
