The Kingdom of Saudi Arabia has purchased a stake in Embracer Group worth $1 billion. According to Video Games Chronicle, once the deal is completed, Saudi Arabia’s Public Investment Fund (PIF) will be the second-largest stakeholder in Embracer Group through its Savvy Gaming Group subsidiary.
Saudi Arabia’s crown prince Mohammed bin Salman has previously said that the aim of the PIF is to make the country’s economy less reliant on its proceeds from its oil supplies and diversify its investments in other areas. That has included investments in various video game companies, including the likes of Take-Two Interactive, EA, Nintendo, and more.
“Savvy Gaming Group’s investment of $1 billion enables us to continue executing our strategy proactively from a position of strength across the global gaming industry,” said Embracer Group founder and CEO Lars Wingefors in a statement.
“Our relationship with Savvy Gaming Group will enable us to set up a regional hub in Saudi Arabia, from which we will be able to make investments across the MENA region, either organically, via partnerships, joint ventures, or via acquisitions of companies led by strong entrepreneurs.”
This is far from the first time Saudi Arabia has dabbled with video game investments. Earlier this year, the country’s sovereign wealth fund acquired more than 5% stakes in Capcom and Nexon. SNK was also revealed in 2020 to have signed deal with the crown prince-backed Electronic Gaming Development Company.
More recently, Saudi Arabia’s Public Investment Fund had also purchased a 5.01% stake in Nintendo.