Why Saudi Arabia is Investing in Games
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Sulaiman
- . October 25, 2022
- . Update: November 11, 2022 1:23 am
The next crucial step toward Saudi Arabia’s economic diversification is currently being taken. Savvy Games Group, which is completely controlled by the Public Investment Fund of the government, is to invest $37.8 billion on gaming and esports in an effort to turn the nation into a gaming hub.
The company is rumored to have set aside $13.3 billion in order to purchase “a prominent gaming publisher to act as a strategic development partner,” according to the reports.
Additionally, minority holdings to the value of $18.6 billion will be involved in the deals. The nation has projected that the strategy will lead to the launch of 250 new gaming companies, the addition of 39,000 new jobs, and a growth in the contribution of the industry to the country’s GDP of $13.3 billion.
The Public Investment Fund (PIF), often known as Saudi Arabia’s Sovereign Wealth Fund, has previous experience with businesses related to gambling. It has a stock in Activision Blizzard for $2.9 billion, a stake in Electronic Arts worth $1.9 billion, and a stake in Take-Two Interactive worth $1.4 billion. Additionally, in May, it became Nintendo’s third-largest shareholder after purchasing a 5.01% investment in the company.
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What’s the next move?
Tension has arisen as a result of Saudi Arabia’s investments in the sports industry between leagues and athletes who accept the country’s funding and those who protest the country’s human rights record, including its support for the war in Yemen and its involvement in the murder of journalist Jamal Khashoggi who wrote for the Washington Post.
In addition to providing financial support for LIV Golf, the PIF is the primary shareholder in the Premier League club Newcastle.
However, many detractors view the efforts with skepticism because they believe that they are an attempt to whitewash the kingdom’s track record on human rights, which includes the repression of its own population and its support for the war in Yemen.
In March, Ward stated to Axios that he was “not over there on an image makeover project,” and that he believed Savvy’s goals were genuine and intended for the industry’s overall improvement.
