Saudi Arabia is set to invest $38 billion in a bid to establish itself as a major gaming hub and player in the global gaming market, which is worth an estimated $184 billion. The move is part of the country’s efforts to diversify its economy away from oil, according to a report by Bloomberg. The investment will be led by Savvy Gaming Group, a subsidiary of the country’s Public Investment Fund (PIF), which is already the largest outside shareholder in Nintendo, with an 8.3% stake.
Initially, Savvy Gaming Group had focused on the esports industry, but it now plans to develop, publish, and acquire AAA games, as well as support the local gaming industry in Riyadh. According to Savvy CEO Brian Ward, the company is now more focused on game publishing and development. The investment will also be used to work with major gaming companies such as Tencent, Nintendo, and Activision Blizzard, to develop new intellectual property and to publish games in the Middle East and North Africa.
The national education budget is $53 billion…
The literacy rate is at 99%…
20% of the annual budget is allocated for education…
Tertiary enrolment is at 71%, 3% higher than France, 7% higher than Japan, 10% higher than the UK…So why shouldn’t Saudi Arabia invest in gaming? https://t.co/aWYzDSkWwC
— Saud Salman AlDossary | ???? ?? ????? ??????? (@999saudsalman) April 4, 2023
Despite having around 21 million gamers, which is 58% of its population, Saudi Arabia is not yet well-known in the global game development or publishing industry. Savvy Gaming Group aims to change that by encouraging partners and other companies to come to Saudi Arabia and establish their publishing or distribution business in Riyadh to serve the region. Ward, who is a former executive at Microsoft, Electronic Arts, and Activision, highlighted the company’s mandate to promote the local gaming industry and to provide new opportunities for gaming companies worldwide.
