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Savvy Games Group (SGG) has unveiled plans to invest SAR 142 billion — ~$38 billion — through 2030 to propel Saudi Arabia to the forefront of the global gaming and esports ecosystem.
The company plans to split its investment across four different programs. Approximately $13.3 billion will go into acquiring and developing a leading game publisher. Nearly $18.7 billion goes to minority stakes in other game publishers. Another $533 million is set aside for growing early-stage gaming and esports companies. Finally, an additional $5.3 billion will support more mature companies that offer Savvy strategic partnerships.
SGG has indicated that these funds will be provided by five of their subsidiaries:
- Nine66, a professional service provider for game developers
- VOV, an architectural firm specialized in gaming and esports venues
- An emerging studio that will publish mid/core games
- ESL FACEIT Group (EFG), the esports tournament conglomerate formed from the $1.5 billion merger between ESL Group (ESL and DreamHack) and FACEIT
- Savvy Games Fund – Savvy’s investment arm that will focus on establishing developers in Saudi Arabia
SGG is an offshoot of Saudi Arabia’s Public Investment Fund (PIF) with His Royal Highness Crown Prince Mohammed bin Salman bin Abdulaziz as chairman of the board. The fund has already acquired significant stakes in Nintendo, Capcom, Nexon and Embracer Group. With these additional funds, SGG plans to establish 250 game companies in Saudi Arabia, create 39,000 jobs and increase the sector’s contribution to GDP to approximately $13.3 billion by 2030.
Saudi Arabia and SGG plan to use these investments to diversify the energy-oriented economy. However, they are likely to face controversy. Many have accused Saudi Arabia of both “sportswashing” and “esportswashing” – investing in entertainment products to distract from their human rights record.
But with $38 billion to spend, it will be hard for many to say no to an influx of cash. Savvy Games Group is in a unique position to shape the future of the gaming and esports industry through at least 2030.
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