Saudi Arabia is planning to invest $38 billion into the country’s gaming industry, according to Bloomberg.
Most recently, the Saudi government increased its stake in Nintendo to 8.26 percent through the Public Investment Fund (PIF), the state’s sovereign wealth fund, and it also holds millions of shares in EA and Take-Two.
Savvy Gaming Group, a subsidiary of PIF, hopes to team up with the companies it has invested in to “work together on publishing, run their Esports business, or develop new IP together”, Savvy’s CEO Brian Ward told Bloomberg.
Savvy is looking to move away from esport ventures, Ward told Bloomberg, and wants to focus on asserting itself as a publisher and developer.
Bloomberg reported that Savvy started a small studio a year ago, with 45 employees. The plan for the studio is to first develop a mobile game, then a console game, according to Ward.
Saudi Arabia’s 21 million gamers make up about 58 percent of the population — compared to the United States’ 66 percent, per Niko Partners. By 2026, the Middle East and North Africa’s gaming market is expected to grow 56 percent to $2.79 billion.
PIF is invested in several sports properties — most notably, LIV Golf and Newcastle United of the Premier League.
Lately, the Chairman of the Saudi Esports Federation Prince Faisal bin Bandar bin Sultan highlighted, in a panel at the FII Priority summit in Miami, the positive aspects of gaming, its increasing popularity in Saudi Arabia, and how it is opening up new career paths for the next generation.
He discussed the shift from pay-to-play to free-to-play models, as well as the advent of new technologies enabling gamers to earn money. He also emphasized the role of the younger generation in driving innovation and the importance of providing them with the necessary tools.
For more on gaming, click here.
