From Oil to mario: Saudi Arabia Invests $38 Billion to Become the Next Gaming Hub

Saudi Arabia is betting big on video games, investing $38 billion to turn the country into a gaming mecca. The Saudi government has identified the video game industry as a critical sector for diversifying the economy and reducing reliance on oil. (VIA Bloomberg)

The investment will be channeled through Savvy Gaming Group, a subsidiary of the Public Investment Fund (PIF), which will focus on developing, publishing, and acquiring top-tier games while supporting the Riyadh gaming industry.

esports

Savvy Gaming Group initially focused on esports, but the industry has been struggling. With its $13 billion budget, the company is now looking to acquire a game publisher. Faisal Alsaif, the subsidiary's CEO, told Bloomberg that the company was interested in taking a public game publisher private.

growth

Savvy's investment in the video game industry is viewed as a chance to grow the sector in Saudi Arabia as well as an opportunity to invest in well-established gaming companies. The Saudi Fund has already made investments in well-known gaming companies such as Nintendo and holds a 5% stake in Capcom and Nexon.

skeptical

Some people, however, are skeptical of the Saudi government's investment in the video game industry. Critics have criticized the country's human rights record, particularly in regard to women's rights, as well as the country's conservative leadership. Investment by the government in the video game industry could be considered a way to diversify the economy while ignoring more pressing social issues.

profitable

Furthermore, some have questioned whether the investment will be profitable. Serkan Toto of Kantan Games noted that China's contentious government has not hampered Tencent's international expansion strategy. However, he also wondered if people would buy fewer Switch games if Saudi Arabia bought a bigger part of Nintendo. Despite these reservations, the Saudi government continues to invest in the video game industry.

the future

Overall, the Saudi government's investment in the video game industry is a bold step. While some are skeptical of the investment and the country's record on human rights, others see it as an opportunity to grow the industry and invest in established gaming companies. It remains to be seen whether the investment will pay off, but the Saudi government is bullish on the potential of the video game industry.