Why Is Saudi Arabia Entering the Video Game Industry?

4 Oct at 18:03

Electronic Arts captured headlines this week after announcing a proposed $55 billion transaction to take the company private. The buyout consortium — which includes private equity firm Silver Lake, investment manager Affinity Partners, and Saudi Arabia’s Public Investment Fund (PIF) — could substantially reshape EA’s ownership and strategic direction in the years ahead.

This transaction is only one facet of Saudi Arabia’s extensive, multi-billion-dollar push into gaming, esports, and entertainment. Recently the PIF, via its portfolio companies, has moved aggressively in the sector: acquiring assets tied to Niantic through Scopely, investing in Savvy Games Group, and purchasing the Evolution Championship Series through the Qiddiya Investment Company (a PIF-owned vehicle). Savvy Games Group also controls ESL FACEIT Group, the combined entity of two leading esports organizers.

In recent years the kingdom has taken significant stakes in publishers and developers such as Activision Blizzard, Capcom, Embracer Group, Nexon, Nintendo, and Take-Two Interactive, and it holds ownership of fighting-game studio SNK — a fact that some fans cite when discussing the creative direction of SNK’s latest release, Fatal Fury: City of the Wolves.

So why is Saudi Arabia pouring capital into games? Economic diversification is a major motive, but there are strategic and cultural drivers as well.

What is the Saudi Arabia Public Investment Fund?

The Public Investment Fund is Saudi Arabia’s sovereign wealth fund — a state-owned investment vehicle established in 1971. Today it operates under the leadership of Crown Prince Mohammed bin Salman, who has served as the fund’s chairman. According to the Sovereign Wealth Fund Institute, the PIF manages roughly $925 billion in assets.

What is Savvy Games Group?

Founded in 2021 by the PIF, Savvy Games Group was created to accelerate Saudi Arabia’s economic diversification and social transformation through investments in games and related entertainment. Led by CEO Brian Ward, the group publicly states its ambition to become a global leader in gaming by investing in studios, esports, and commercial ventures. Crown Prince Mohammed bin Salman — often described in popular accounts as an avid gamer — chairs the PIF that backs the group.

Savvy Games Group says it is committed to fostering long-term innovation and growth in games and esports through strategic acquisitions and partnerships, aiming for rapid expansion and industry leadership by 2030.

Why games?

Beyond the personal interests attributed to senior leadership, Saudi Arabia views gaming as a high-growth sector. The PIF projects the global games market will generate hundreds of billions in revenue over the coming years, and the kingdom hopes to capture a portion of that growth through investment and infrastructure.

One pillar of that strategy is the Qiddiya Esports and Gaming District — part of the broader Qiddiya entertainment and tourism masterplan near Riyadh. Planners envision the district drawing millions of annual visitors and nurturing a domestic games ecosystem: the stated targets include attracting 10 million annual visitors to Qiddiya venues by 2030, incubating dozens of game studios, and supporting the National Strategy for Gaming and Esports, which outlines goals such as incubating hundreds of companies, creating tens of thousands of jobs, and contributing billions to GDP.

Investment in gaming is just one element of the PIF’s broader push to diversify Saudi Arabia’s economy beyond oil, which still contributes a large share of national output. The strategy spans tourism, entertainment, technology, and other sectors as the kingdom prepares for a post-peak-oil future.

These investments have prompted controversy and debate. Critics liken parts of the PIF’s sports and entertainment spending to “sportswashing,” pointing to high-profile events and sports investments designed to burnish the country’s international image. Concerns about human-rights abuses and the shadow of the Jamal Khashoggi killing continue to color public discussion about the kingdom’s global investments, leaving open the question of whether cultural and commercial activity in games and esports can or should mitigate those reputational issues.

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