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Electronic Arts was in the news recently with the announcement of a massive deal valued at around 55 billion dollars to privatize the company. Investors comprising investment fund the Silver Lake fund, financial firm Affinity Partners, and Saudi Arabia's sovereign wealth fund may radically change the future of Electronic Arts.

This transaction is only one piece of Saudi Arabia's billions in investments in the gaming and entertainment sectors. In recent months, the PIF purchased Pokémon Go developer the Niantic company through publisher Scopely and its Savvy Games Group. Furthermore snapped up the fighting game tournament via the Qiddiya Investment Company, a subsidiary of the PIF. Savvy Games additionally controls the ESL FACEIT organization, that combined two major tournament hosts.

The Kingdom has poured billions to purchase shares in companies like Activision Blizzard, Capcom, Embracer, Nexon, Nintendo Ltd., and Take-Two lately. Additionally owns developer of fighting games SNK, ownership that certain fans of the genre feel affected the design of the company's newest game, Fatal Fury: City of the Wolves.

Why is the Kingdom so heavily engaged in the gaming industry? A key factor of the answer broadening economic sources. Yet Saudi Arabia is spending big on the interactive entertainment business for additional motives as well.

Understanding the Public Investment Fund of Saudi Arabia?

The PIF is the national investment vehicle of the Kingdom. Established in the early 1970s, the fund is under the direction of Mohammed bin Salman, the Kingdom's primary leader since 2015. Per reports, the Kingdom's Public Investment Fund controls approximately 925 billion dollars in holdings.

What is Savvy Games Group?

Savvy Games Group was founded in 2021 by the PIF. This entity was set up with Saudi Arabia’s “economic diversification and social transformation” as an objective, as stated by CEO the CEO. The Crown Prince bin Salman, the crown prince of Saudi Arabia, reportedly a “massive gamer,” holds the position of the PIF’s head.

The Savvy Games Group states it is “focused on fostering sustainable expansion and advancement in the interactive entertainment field by means of strategic acquisitions, investments, and enterprises.” The group aims to achieve “dominance in the games industry” by the next decade, through fast and substantial expansion.

What's the Attraction to Gaming?

In addition to MBS's reported interest in gaming, the Kingdom is hoping to put money into a growing industry. According to official statements, the Public Investment Fund anticipates to see video game sector revenues reach $300 billion by 2028.

The Kingdom is furthermore planning that its esports district in Qiddiya, part of the Qiddiya initiative in the capital, will transform into a center for esports and gaming. It aims to “draw ten million visitors each year to its venues by the year 2030, and nurture 30 top game developers.” This is included in a master plan referred to as the National Gaming and Esports Strategy, which aims to foster hundreds of enterprises, establish tens of thousands of jobs, and add thirteen point three billion dollars to the national economy, as per the Public Investment Fund.

However the gaming sector is just one component of the PIF’s financial plan, which is designed to broaden the Kingdom's economic base into new areas, including the tourism industry, the entertainment business, and the tech sector. The country’s economy is significantly based on the oil sector, which accounts for around forty percent of GDP. Saudi Arabia is preparing for a post-oil peak era.

However, the group’s ventures in game publishers, developers, and competitive gaming entities have been debated, sparking claims comparable to the PIF “sportswashing” — funding in athletic tournaments such as the FIFA World Cup and the creation of LIV Golf to improve Saudi Arabia’s global reputation. The nation's record of rights violations and the Crown Prince's reported directing of the killing of journalist Jamal Khashoggi have significantly harmed public perception of the kingdom. Whether gaming could ever buff the kingdom’s reputation is uncertain, but the possible financial benefits are likely a higher priority.