Why Is Saudi Arabia's Crown Prince Investing $37b into Gaming?
Gaming is one of the oldest and still-running enterprises. Gamers have relied on it for entertainment for a very long time. The gaming business is worth hundreds of billions of dollars, and it's just becoming bigger as more people become aware of it. The gaming experience is continually evolving, and major companies are experimenting with different types of content. On the other hand, the broader trends lead to a globalization of the gaming experience, with players playing against one another no matter where they are and deeper human interaction, whether through texting, avatars, or video conversations.
The video game market is sizable, with a lot of promise for attracting consumers of all ages. People can comprehend and enjoy new technologies because of the significance of and enthusiasm for gaming. The community is drawn to the online gaming industry by its diverse divisions, which offer a variety of video game genres and mobile game categories that are popular with both adults and children.
The Public Investment Fund, the sovereign wealth fund of Saudi Arabia, which owns the Savvy Games Group, has presented its new investment plan as the Kingdom aspires to become one of the world's main gaming hotspots. On Thursday, Saudi Arabia's Crown Prince Mohammed bin Salman launched the Savvy Games Group's new strategy; the group intends to invest 142 billion riyals ($38 billion) over four programs, each with a distinct goal. According to the strategy, 250 gaming firms would be founded in the kingdom, leading to the creation of 39,000 jobs and an increase in the sector's contribution to the GDP to 50 billion riyals by 2030.
As part of the programs, a top game publisher will be acquired and developed to serve as a strategic development partner. A number of important companies that support Savvy's game development agenda will also receive minority interest investments. Additionally, they include diversified investments in market disruptors to help early-stage gaming and esports firms flourish as well as investments in established industry partners who enhance Savvy's portfolio with their knowledge and experience.
Crown Prince Mohammed bin Salman, who also serves as the group's board chairman, said: "Savvy Games Group is one aspect of our ambitious vision aiming to make Saudi Arabia the greatest worldwide center for the games and esports sector by 2030."
Savvy Games Group of Saudi Arabia unveils $37 billion investment plan
The group's strategy aims to boost growth by investing in the esports and electronic games sectors with a distinct long-term investment horizon and long-dated capital, expanding opportunities for participation and reinforcing partnerships in the gaming sector, and enhancing user experience. The implementation of the strategy will facilitate and support the newly unveiled national gaming and esports strategy, as Savvy will invest in a number of regional, national, and global programs and infrastructure to offer chances for entrepreneurship, training, and education.
Four main pillars will serve as the foundation for Savvy's investments: boosting returns, local impact, leaving a worldwide footprint, growing, resulting in international game investing, generating sustainable returns, and empowering creators throughout the whole value chain.It will help Saudi Arabia develop into the leading global hub for video games and esports by fostering local talent and utilizing the country's exceptional geographic position.
In accordance with its investment plan, the group intends to distribute SR 142 billion among four programs, each of which has a distinct goal. A budget of about SR 50 billion has been set aside for purchasing and developing a prestigious gaming publisher who will act as a strategic development partner. Savvy will spend an additional SR 70 billion on a number of minority stake investments in important businesses that support its game development agenda, SR2 billion in diversified industry disruptor investments to grow the early-stage game and esports companies, and SR20 billion on investments in established industry partners who add value and expertise to Savvy's portfolio.
Savvy's five distinct subsidiaries, each focused on a specific industry or ecosystem growth, will carry out this approach. Together, these five companies make up Savvy's EFG esports subsidiary, which was created following the company's prior acquisitions of the ESL and FACEIT divisions. EFG combines ESL's strengths in creating, broadcasting, and commercializing premium content with FACEIT's capabilities as a best-in-class online platform to create a large portion of the global competitive gaming ecosystem.
Through the provision of suitable infrastructure, the provision of talent and participation possibilities, the provision of funding and consultancy support, and the promotion of talent, Nine66 is creating an ecosystem for game creators and studios to flourish. The business also provides publishing services in the Middle East markets, enabling foreign developers to do business there.
The VOV company, which specializes in building gaming and competition venues, aims to develop skills and provide a healthy environment for players by offering healthy food, a supportive social environment, and encouraging players to adopt a healthy lifestyle. Building a series of high-quality venues that consider all players' health and care is a step that is the first of its kind globally. The business will also offer initiatives to educate and advise young gamers who want to enter the competitive esports market.
The group will also set up the first global games studio, which will launch in Saudi Arabia and offer a range of games to fans across the globe. To bring games and studios under the Savvy Group's wing, specialized teams will be developed with an emphasis on mid-core games, which are more sophisticated and time-intensive than hyper-casual products. These groups will try to seize opportunities for acquisition in the Kingdom and other markets. The plan also calls for the creation of the Savvy Games Fund, which will finance the establishment of major publishers and developers' bases in the Kingdom by investing in them.
In order to grow the gaming and esports industry, the companies will work together to develop the world-class event and venue concepts, invest strategically in developers and publishers, fund content creators, invest in technology innovation, and create synergies across every area of the industry, according to the company.
Savvy, a global leader in this booming industry, intends to dominate gaming and esports by investing a sizable amount of money over an extended period of time. Its investments will open up opportunities for participation and advancement in the sector, regardless of gender, location, income, or other factors. The investments made by Savvy are meant to drive the sector's expansion on a worldwide scale, making it a more welcoming, interesting, and lucrative environment for players, fans, developers, and technology pioneers. This will make it easier for more people to have equal access to this dynamic, quickly expanding economy.
With an average yearly revenue of $200 million, the gaming industry in the UAE is the third-largest in the world. UAE's gaming industry is booming due to having the world's highest smartphone penetration rate. You've come to the right site if you're looking for complete game development solutions. Please feel free to contact Royex Technologies, a leading game development company in Dubai that has experience in developing over 300 projects for our clients, including several Mobile games, console games, NFT games, AR/VR games, and other Solutions. In order to create top-notch apps and games that meet your demands and expectations, we strategize and carry out the necessary steps at all development phases.