Saudi Arabia’s Savvy Games Group will invest $37.8 billion in initiatives aimed at making Saudi Arabia a global hub for gaming.
Savvy Games Group is owned by the Saudi sovereign wealth fund The Public Investment Fund. The new investment strategy will be spread across four programs, each with a specific objective.
The strategy includes the establishment of 250 new game companies in Saudi Arabia. This is expected to create 39,000 jobs and raise the sector’s gross domestic product contribution to more than $13.3 billion by 2030.
The investments include $18.6 billion to take several minority stakes in companies that support Savvy’s game development agenda and $13.3 billion to acquire “a leading game publisher to become a strategic development partner.”
An additional $5.3 billion will be invested in mature industry partners who bring expertise to Savvy’s portfolio and $532,000,000 will target industry disruptors “to grow early-stage games and esports companies.”
The company’s strategy is to invest in the electronic games industry and esports over a long timeline, including local and international programs and infrastructure.
Savvy Games Group was launched earlier this year, in line with the PIF’s 2021-2025 strategy to drive innovation in strategic sectors including entertainment, leisure, and sports.
The group’s strategy aims to drive growth by investing in the electronic games industry and esports with a unique, long-term investment horizon and long-dated capital, creating more opportunities for participation and strengthening partnerships in the gaming industry, as well as improving the user experience.
Savvy’s investments will be based on four key pillars: enhancing returns, local impact, leaving a global footprint and expanding, leading to international games investing, generating sustainable returns, and enabling creators across the entire value chain.
Savvy will invest in several local and international programs and infrastructure to provide training, education, and entrepreneurship opportunities, which will enable and support the recently announced national gaming and esports strategy.