Saudi Arabia's Increased Stake In Electronic Arts: What Does It Mean For The Kingdom's Gaming And eSports Scene?

The Kingdom of Saudi Arabia’s Public Investment Fund, popularly known to businesses around the world as PIF, has recently increased its stake in the American video game company Electronic Arts (EA). In a few filings published on May 15, 2023, it was found that the PIF purchased several shares in EA during Q4 2022.

Before Q4, the PIF held a little over 16 million shares in EA. However, by the end of Q1 2023, that is, March 31 this year, the PIF has been found to hold almost 25 million shares, which is an increase of 55 percent. Given EA has over 274 million shares, the recent purchase puts the PIF’s ownership stake in the video game company at around 9 percent.

EA isn’t the only video game company that Saudi Arabia is investing in right now. Through the PIF, the Kingdom has also poured a lot of money into companies like Activision Blizzard and Take-Two Interactive. The fund has also been investing in Asian games firms, including the likes of Capcom and Nintendo, two of the biggest names in the video game industry. Similar to EA, the PIF has also increased its stake in Nintendo to over 8 percent earlier in 2023.

Savvy Games Group, the rather creatively named PIF gaming subsidiary, also bought a $1 billion stake in the Swedish video game and media holding company Embracer Group in 2022. The same year, under the leadership of the Saudi Crown Prince Mohammed bin Salman, the Kingdom’s Electronic Gaming Development Company (EGDC) acquired a 96 percent stake in SNK, the developers behind The King of Fighters video game.

Why is Saudi Arabia Investing So Much Money in the Video Game Industry

Saudi Arabia isn’t only investing in the video game industry. The Kingdom is also splashing a ton of cash in the eSports industry. Right now, the PIF is looking to invest around $38 billion in these industries, and the motivation behind this spending is the same as many of the country’s other investments – to diversify its economy and gradually move away from an oil-based economy.

The global gaming market is worth over $184 billion at present. Saudi Arabia is well aware of this, and like any other smart country, it too sees the potential this market has, which explains the massive investments, but what good will it do for the country’s gaming and eSports scene?

How These Investments Will Impact Saudi Arabia’s Gaming and eSports Industry

As a Muslim country, Saudi Arabia is not known for its betting scene. However, over the past few years, several high-quality Saudi Arabia eSports betting sites have popped up. These betting sites are allowing players to experience gambling and betting on the internet, and the progress made by many such sites showcases just how popular these betting sites have become.

Have you heard of A7labet? Right now, it’s one of the best Arabian betting sites that you’ll come across. From your usual deposit and welcome bonuses to no-deposit bonuses and free spins, this online Arabic casino and betting site has it all. It also lets you bet on eSports events, which is still rare in many of the globally renowned casinos and betting sites. A7labet’s existence and progress are proof of how eager Saudi Arabia is in the gaming sector, even if it means introducing the opportunity to bet on eSports games.

Besides, the Kingdom’s involvement in these sectors will also see many titles adopt Saudi locations, aesthetics, culture, etc., in the games. Take the PIF’s EA investments into account. In the future, games like FIFA – which might soon be renamed as EA Sports FC – might feature the Saudi Pro League and stadiums from Saudi Arabia. Games like Need for Speed might bring in cars made in the Kingdom. This will help more Saudi players get into video gaming as a whole and will also let players from across the globe experience more of this country.

It’s also expected that Saudi Arabia will become a hotspot for the eSports scene. If anything, the Kingdom might end up hosting some of the biggest eSports tournaments in the world. It’s already doing wonders working with the WWE and hosting the Crown Jewel wrestling event every year. These new investments will likely see similar large-scale events for eSports tournaments, which will be great not only for Saudi Arabia but for eSports players across the globe.

At the end of the day, a lot is left to interpretation as to what Saudi Arabia might gain from its investments in the gaming and eSports industries. Whatever it is, right now, it all looks positive and a step in the right direction, at least for the Kingdom of Saudi Arabia.