The Saudi Public Investment Fund (PIF) is making significant investments in the gaming industry, aiming to transform Saudi Arabia into a gaming powerhouse and solidify its economic and political position.
Saudi Arabia has embarked on an ambitious mission to expand its influence in the world of sports and entertainment. With massive investments in golf, soccer, movies, and now video games, the kingdom is determined to diversify its economy and establish itself as a global player. Backed by the Saudi Public Investment Fund (PIF), the country’s gaming venture, led by Savvy Games Group, is making waves in the industry, acquiring major players and aiming to become a hub of development and esports. This article explores Saudi Arabia’s foray into the gaming world and the implications it holds for the kingdom’s future.
A Billion-Dollar Merger and Sporting Superstars
In June, Saudi-backed LIV Golf made headlines by merging with the Professional Golfers’ Association, backed by over a billion dollars from the PIF. In soccer, the kingdom has attracted global superstars like Karim Benzema, Neymar, and Jordan Henderson to play in Saudi Arabia, despite facing criticism for sportswashing. This summer has been marked by disruptions and humbling moments for established institutions as Saudi Arabia’s influence in sports grows.
Expanding Beyond Sports: Movies and WWE
Saudi Arabia’s investment spree is not limited to sports. The kingdom has established the Red Sea International Film Festival and hosts pay-per-view WWE events. However, the focus has now shifted to the lucrative video game industry, with Saudi Arabia aiming to make significant inroads.
The Rise of Savvy Games Group
Through the PIF-funded Savvy Games Group, Saudi Arabia has made several minority investments in gaming. Companies like Nintendo, Take-Two, EA, and Activision Blizzard have seen significant investments from the kingdom. Savvy Games Group has also acquired mobile developer Scopely for $4.9 billion and esports organizations ESL and Faceit for $1.5 billion. The kingdom has earmarked billions more for further investments, making its presence felt in the video game industry.
The Vision for Saudi Arabia’s Gaming Industry
According to Savvy CEO Brian Ward, Saudi Arabia aims to become a gaming powerhouse, transforming the kingdom into a hub of development and esports. This ambitious plan is part of Saudi Arabia’s broader strategy for economic diversification and social transformation. By investing in the gaming industry, the kingdom seeks to maintain its economic relevance in a post-fossil fuel world while strengthening its political position through entertainment and diversification.
Unprecedented Investment and Global Expansion
While massive investments in the gaming industry are not unprecedented, the scale and speed at which Saudi Arabia is entering the market are remarkable. Video games were often ignored by the wider business world until the advent of digital distribution. Now, a nation-state with a controversial human rights record is pushing its way into a predominantly escapist pursuit, much like real estate companies in China venturing into the film industry.
Saudi Arabia’s Strategic Moves
Saudi Arabia’s investments in video games and other industries are driven by security concerns. The kingdom’s heavy dependence on oil and gas necessitates industrial diversification. Additionally, with a large youth population susceptible to radicalism, the Saudi government aims to negotiate a new social contract by catering to their demands. Video games also offer a platform for international power brokering, as seen in China’s President Xi Jinping’s visit to Saudi Arabia and the kingdom’s subsequent investment in Chinese esports.
Gameswashing and the Power of Fandom
Similar to sportswashing, Saudi Arabia’s entry into the gaming industry can be seen as gameswashing. The kingdom’s financial clout, coupled with the passionate fandoms of sports and video games, allows it to burnish its global reputation. However, concerns arise regarding censorship and self-censorship within companies owned by powers like Saudi Arabia. The promise of financial support may lead to a loss of creative freedom and self-censorship among developers.
Conclusion:
Saudi Arabia’s ambitious expansion into the gaming industry signals a new world order in the making. With its vast financial resources, the kingdom aims to transform into a gaming powerhouse, diversify its economy, and solidify its political position. While the investment in video games presents opportunities for growth and development, concerns about censorship and the kingdom’s human rights record persist. As Saudi Arabia continues to make significant strides in the gaming world, the implications for the industry and the country’s future remain to be seen.
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