KSA invests billions into e-gaming to diversify its economy
In an attempt to turn Saudi Arabia into a gaming hub, Crown Prince makes investments worth billions in the e-sports industry,
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The Nintendo logo is displayed at the Nintendo Tokyo store in Tokyo, Japan, Nov. 19, 2019. (REUTERS)
Japanese multinational video game company Nintendo has witnessed a recent major stake purchase.
With Crown Prince Mohammad Bin Salman attempting to make his way into the games and esports industry, Saudi Arabia has become the largest outside shareholder of Nintendo, with its stake in the company rising from the 6% it had at the beginning of the year to 8.3%, according to Bloomberg.
A Nintendo representative announced that the latest Nintendo stake purchase was made solely for investment purposes, and that the company does not comment on shareholders.
The Crown Prince's wish to turn his Kingdom into a sports hub started with PIF-owned Savvy Games, with a plan to invest 142 billion riyals or $38 billion in E-sports to diversify the economy of the world's biggest oil exporter. The Saudi Prince also intends to buy stakes in the Chinese gaming company Tencent Holding Ltd, worth $260 million, Bloomberg reported.
A consultant who works with Japanese companies exporting pop culture content to the Middle East, Akira Akatoriya said, "The Nintendo purchase, as well as investments in game companies around the world, is part of Saudi Arabia’s long-term project to become less reliant on oil."
This could be possible due to OPEC's decision to slow down oil production due to its sharp decrease in demand back in 2020 when Covid-19 hit. The decision to decrease oil production to 2 million barrels per day still stands today, with the full support of Saudi Arabia, as they refer to the decision to be "unanimous" by members of the alliance of oil exporters.
Read more: OPEC+ fails to produce required amount of oil under deal: IEA
Saudi Arabia's wealth fund investments for 2030 include building strategic economic partnerships while bringing home cutting-edge technology with the help of PIF's renewable energy, data analysis, and entertainment content.
In return, PIF plans to construct a futuristic city in northwestern Saudi Arabia, planning to market it as the region's first gaming hub.
Read next: Foreign Affairs: The world in the eyes of Saudi Arabia
