Savvy Games Group, the gaming company owned by Saudi Arabia’s Public Investment Fund (PIF), has earmarked SAR50 billion ($13.3 billion) to acquire and develop a gaming publishing company in a bid to make the kingdom a hub for online gaming.
The possible acquisition is part of a $38 billion (SAR142 billion) investment strategy that Savvy has unveiled, which it hopes will take shape over the next eight years through to 2030.
PIF had launched Savvy Gaming in January after acquiring ESL Gaming and gaming company FACEIT for a total of $1.5 billion. The two companies were merged to create ESL FACEIT Group under Savvy Gaming. In February, PIF acquired a 5% stake each in Japanese gaming companies Nexon and Capcom. In June, Savvy acquired a stake valued at $1.05 billion in Swedish gaming company Embracer Group.
Savvy said that, as part of its new strategy, it will split its investments across four programmes. Apart from the $13.3 billion it is likely to spend in acquiring a gaming publisher, Savvy also plans to plough $18.7 billion in acquiring minority stakes in gaming companies all over the world.
In addition, it plans to spend $533 million in growing smaller gaming companies that are in their early stages of growth, and another $5.3 billion into more established ones with which it plans to strike strategic partnerships.
Savvy is also looking to set up as many as 250 gaming companies in Saudi Arabia, which it hopes, will generate up to 39,000 jobs in the sector and raise the sector’s contribution to the country’s economy to SAR50 billion by 2030.
This mega investment strategy will be executed by Savvy’s five independent subsidiaries, the company said.
These five companies comprise Savvy’s esports arm, EFG, which was created following Savvy’s earlier acquisition of ESL and FACEIT groups. The others are Nine66, VOV Company and an upcoming studio that will publish games.
Apart from these, Savvy also has an investment arm, the Savvy Games Fund, which will focus on establishing game developers in the kingdom.