After Pumping $40 Billion in the Gaming Industry, Saudi Arabia Skyrockets Stakes in EA, Cementing a Major Power Move

Last month, reports emerged that Saudi Arabia had invested approximately $40 billion to enhance its gaming infrastructure. As one of the world’s most technologically advanced nations, this Middle Eastern country is actively promoting innovation in the gaming industry by providing funding to local developers in Riyadh. Spearheading this initiative is “Savvy Games Group,” a company established and fully owned by the Saudi Arabian government’s Public Investment Fund (PIF).

In a recently published filing, it has been revealed that Saudi Arabia is displaying significant interest in the gaming industry. The filing, covering the three-month period ending on March 31, 2023, reveals that the PIF has acquired additional shares in the publisher of FIFA during the fourth quarter of 2022.

Saudi Arabia increases its shares in EA

Before the start of the fourth quarter, the Public Investment Fund held 16.01 million shares in Electronic Arts (EA). As of the end of the first quarter of 2023, however, their holdings have increased to 24.81 million shares, representing a significant growth of 55%.

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It’s worth noting that the PIF has made investments in various prominent US-based game publishers, including Activision Blizzard and Take-Two Interactive, among others, as part of its broader investment strategy in the gaming industry. Additionally, it has been previously announced that the country will be making significant investments in the pro-competitive scene.

In addition to US-based studios, Saudi Arabia has also made substantial investments in Asian developers, including acquiring stakes in companies such as Capcom, Nexon, and Nintendo. Notably, earlier this year, the PIF increased its ownership stake in Nintendo to 8.26%, indicating its strong interest and continued investment in the Japanese gaming giant. These strategic investments in Asian game companies demonstrate PIF’s commitment to expanding its presence and portfolio within the global gaming industry.

While the increasing interest from an advanced country like Saudi Arabia can be seen as a positive push for the industry’s future, it has also raised concerns. Experts express apprehension that if Saudi Arabia becomes a prominent player in the global gaming industry, the country’s conservative laws and censorship may lead to stricter regulations, potentially limiting gender representation and other opportunities within the medium.

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What do think about Saudi Arabia’a emergence as a big dog in the Gaming scene? Let us know in the comments below!