- Saudi Arabia's Public Investment Fund is investing $38 billion in its bid to establish the country as a major player in the global gaming market. Initially focusing on esports, the fund's subsidiary, Savvy Gaming Group, will now develop, publish, and acquire high-quality games to support the growth of the gaming industry in Riyadh. The $184 billion gaming market presents a significant opportunity for the country to achieve its economic diversification goals.
- Savvy Gaming Group's plans are ambitious as they enter a competitive market where major players like Electronic Arts (EA) have been downsizing their workforce. However, the company has already made significant investments in the gaming industry, including multibillion-dollar deals with companies such as Nintendo, Tencent, and Activision Blizzard (ATVI). With these partnerships, Savvy Gaming Group aims to develop its business and expand its reach in the industry.
Why it matters
Savvy Gaming Group chose Riyadh as its headquarters to tap into Saudi Arabia's growing population of gamers. With 21 million gamers, representing 58% of the population, the country has a significant potential market for the gaming industry. By 2026, the games market in the Middle East and North Africa is expected to reach $2.79 billion, a growth of 56%. Savvy plans to develop, publish, and acquire top-tier games to build a gaming industry in the region. They also hope to attract other gaming companies by leveraging their parent company, the Public Investment Fund, and its multibillion-dollar investments in gaming companies like Nintendo, Tencent, and Activision Blizzard.