As part of the Vision 2030 plan, the Saudi Arabian government could invest billions of dollars in the toy industry.

 

 

Saudi Arabia’s government-backed Savvy Gaming Group is pouring billions into the gaming industry as part of the kingdom’s growing interest in the industry. The investment is part of Saudi Arabia’s 2030 goal to position itself as a central player in the global gaming industry. Through organisations such as Savvy, the government hopes not only to acquire stakes in prominent game companies such as Activision and EA but also to launch its own series of game companies.

One of Savvy’s main goals is to increase its esports presence in the Middle East and to create game studios that make games for a global audience.

Back in January, the company announced that Savvy Gaming Group would acquire ESL and Faceit for $1.5 billion. Then in June, the company announced a $1 billion investment in Embracer Group. The latest announcement was that the company would invest a further $37.8 billion in the gaming sector.

According to the announcement, $13 billion will be used to “acquire and develop a leading game publisher to become a strategic development partner”. A further $18 billion will be invested in minority stakes, $5 billion in mature industry partners and the remainder in early-stage games and esports companies. According to the announcement, Savvy’s efforts are expected to create 250 gaming companies and 39,000 jobs by 2030.

 

 

 

 

Clearly, Savvy Gaming Group is not the only Saudi Arabian organisation making moves in the gaming sector.

Back in April, SNK Corporation was acquired by Saudi Arabia’s Crown Prince Mohammed bin Salman (now also Prime Minister) through high-profile investment in Electronic Gaming Development Company. A month later, the kingdom became Nintendo’s fifth largest shareholder after acquiring a 5.01 per cent stake in the company. Now the recent $37.8 billion investment suggests that the Saudi Arabian government may be looking to increase its stake and influence in the industry even further.

However, some critics see Saudi Arabia’s gaming ambitions as part of the kingdom’s efforts to cover up human rights abuses, such as its involvement in the Yemeni civil war. Furthermore, the crown prince, who chairs the board of directors of Savvy, is suspected of involvement in the 2018 murder of journalist Jamal Khashoggi. Time will tell how Saudi Arabia will continue to navigate the video game sector while facing intense scrutiny from the international community for its actions.

Source: Saudi Press Agency