Saudi Arabia: Investments in Global Game Companies

Key insights

4 slides

Ambitious targets

The Savvy Games Group aims to establish Saudi Arabia as a global gaming hub by 2030.

The sector is also targeted to contribute significantly to the national GDP.

2030 Vision. By 2030, Savvy Games Group aims to create 250 domestic game companies and 39,000 jobs, contributing 1% to Saudi Arabia's GDP.

250

Target number of domestic game companies by 2030.

Jobs to be generated: 39,000
Contribution to national GDP: 1%

Capital deployment

Saudi Arabia's Public Investment Fund has allocated $37.8 billion to the gaming sector.

The strategy involves significant capital deployment across international markets.

Investment Scale. The Public Investment Fund has allocated $37.8 billion to the gaming sector, with $13 billion for M&A and $18 billion for minority stakes.

$37.8 billion

Total allocation to the gaming sector.

Designated for M&A: $13 billion
For minority stake acquisitions: $18 billion

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Summary

Saudi Arabia is aggressively pursuing a strategy to diversify its oil-dependent economy by establishing a dominant presence in the global video game and esports sectors. This initiative is primarily executed through the Savvy Games Group, a subsidiary of the nation’s $650 billion Public Investment Fund. The overarching goal is to transform the country into a global gaming hub, with plans to foster 250 domestic game companies, generate 39,000 jobs, and ensure the sector contributes 1% to the national gross domestic product by 2030.

The investment strategy is characterized by significant capital deployment across international markets. Within an 18-month period, the country invested nearly $8 billion into major global entities, including notable stakes in Embracer Group, Nintendo, Capcom, NCSoft, Take-Two, Electronic Arts, and Activision Blizzard. A major milestone in this expansion was the $4.9 billion acquisition of the mobile developer Scopely. Furthermore, the Public Investment Fund has earmarked a total of $37.8 billion for the industry, split between $13 billion for mergers and acquisitions and $18 billion for minority stake acquisitions.

Recent developments indicate a continued focus on international expansion, specifically targeting the Chinese market. Reports suggest that Savvy Games Group is in discussions to acquire Moonton, the developer behind the popular title Mobile Legends: Bang Bang, from its parent company, ByteDance. This potential acquisition aligns with the organization's stated interest in expanding its footprint in Asia. By utilizing a high-volume investment approach, the country aims to build a robust gaming ecosystem from the ground up, effectively positioning itself as a major stakeholder in the future of the global interactive entertainment industry.