Saudi Arabia is looking to invest billions into the gaming industry. It recently increased its investment in EA and Take-Two Interactive while pouring more money into esports as well.
A series of financial disclosures this week reinforced the kingdom’s stated goal to eventually invest billions into the games industry.
Saudi Arabia’s sovereign wealth fund also increased its stake in the Japanese videogame-developing company Nintendo to 7.1 percent.
The country’s sovereign wealth fund increased its stake in EA from 5.1 percent to 5.8 percent with the acquisition of 2 million more shares as of the end of 2022.
Its stake in Grand Theft Auto maker Take-Two grew from 5.3 percent to 6.8 percent by the end of last year, after it obtained nearly 3 million more shares.
The Saudi government-funded Savvy Gaming Group announced today that it is investing $265 million into Chinese esports giant VSPO.
Saudi Arabia is aiming to become a global gaming hub.
In September, Crown Prince Mohammed bin Salman launched the Savvy Games Group. Savvy has committed to investing $38 billion into gaming and has earmarked $13 billion to acquire a major game publisher.
Its strategy is to drive growth by investing in the video games and esports industry with a long-term investment plan, creating more opportunities for participation and strengthening partnerships in the games industry, as well as improving the user experience.
The Kingdom will invest $37.7 billion in the gaming industry, aimed at establishing 250 game companies in the country. The government expects the move to create 39,000 jobs and raise the sector’s gross domestic product contribution to $13.33 billion by 2030.
Savvy’s first public gaming investments, in January 2022, involved the purchase of two major esports organizations for $1.5 billion.
The official goals for Saudi Arabia’s investment in gaming include diversification of the kingdom’s economy and supporting a younger population in the region.
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