Saudi Arabia increases stake in EA gaming by 55%

Saudi Arabia’s Public Investment Fund (PIF) is pumping more money in the gaming industry, and has increased its stake in American gaming company Electronic Arts (EA) by 55%.

The PIF revealed the investment in a filing made on Monday detailing its first calendar quarter (Q1) of 2023. 

What happened: The PIF’s January to March filing, released on Monday, showed that the fund purchased more shares of EA during Q4 of 2022. 

The PIF held 16.1 million shares in the FIFA and Madden NFL game publisher before Q4 2022, but after Q1 2023, it held 24.81 million shares, according to financial research publisher Seeking Alpha. This is a 55% increase. 

EA currently has 276 million outstanding shares, putting the PIF’s stake at 8.99%.

Why it matters: EA is one of the many US game publishing companies that Saudi Arabia's PIF has invested in as part of the kingdom’s push to become a leader in the sector by 2030. 

Saudi Arabia already has investments in Activision Blizzard and Take-Two Interactive from the United States.

In February 2023, Saudi Arabia's sovereign wealth fund became Nintendo’s largest outside investor, holding 8.26% shares of the famed Japanese gaming publisher. It also owns stakes in game publishing companies Capcom and Nexon. 

The PIF-launched Savvy Gaming Group bought leading esports events and competitions company ESL for $1.5 billion and FACE IT Company early last year. It also bought $1 billion in shares of Swedish video game and media holding company Embracer Group in 2022. 

Saudi Arabia’s Electronic Gaming (EGDC) also owns 96.18% of Japanese games developer SNK after a deal made in February of last year. EGDC is owned by the Mohammed bin Salman Foundation, known as MiSK Foundation. 

Crown Prince Mohammed bin Salman announced his country’s National Gaming and Esports Strategy in September of last year, an arm of its Vision 2030 that in part plans to transform the country’s economy and reduce its reliance on traditional fossil fuels by developing other sectors in part. 

Salman said his country’s gaming strategy will add $13 billion to the gross domestic product and create 39,000 jobs by 2030. 

Know more: After Saudi Arabia released its National Gaming and Esports Strategy last year, members of the kingdom's local gaming industry say community players, developers and startups are key to actualizing the plan’s ambitious goals.