RIAD: Saudi Crown Prince Mohammed bin Salman on Thursday unveiled a strategy for the Savvy Games Group, which intends to invest the equivalent of US$37.7 billion across four gaming programs, the Saudi Press Agency reported.
“We are leveraging the untapped potential of the esports and gaming sector to diversify our economy, drive innovation in the sector, and further expand the supply of entertainment and esports across the kingdom,” he added.
Wholly owned by the State Investment Fund, Savvy’s strategy is to drive growth by investing in the video game and esports industry with a unique long-term investment horizon and long-term capital, creating more opportunities for participation and strengthening partnerships in the gaming industry, as well as improving the user experience.
The launch of the Savvy Games Group strategy will support the recently announced national gaming and esports strategy as Savvy will invest in several local and international programs and infrastructure to provide training, education and entrepreneurship opportunities.
It is also expected to attract international companies to Saudi Arabia through investments and partnerships that will contribute to the provision of skills, transfer of knowledge and capacity building of the entire ecosystem.
In addition, 250 gaming companies will be created in the kingdom, which will create 39,000 jobs and increase the sector’s contribution to GDP to SR50 billion by 2030.
Savvy’s investment will be based on four key pillars, including increasing profitability, impacting locally, leaving a global footprint, and expanding, leading to investment in international games, generating sustainable profits, and expanding opportunities for creators throughout the value chain.
Savvy will help develop talent in the kingdom and catalyze Saudi Arabia’s unique geographic location to create a dominant global gaming and esports hub.
As part of the group’s investment strategy, it is planned to invest SR142 billion in four programs, each with specific objectives. Approximately 50 billion Saudi Real (SR) has been allocated to acquire and develop a leading game publisher as a strategic development partner.
Another SR70 billion will be directed towards a range of investments in minority stakes in key companies supporting the gaming development program, SR2 billion into diversified investments in industry disruptors to develop companies in the early stages of gaming and esports development, and SR20 billion towards investments in mature industry partners who add value and experience to the Savvy portfolio.
This strategy will be driven by five independent Savvy subsidiaries dedicated to different sectors and ecosystem development. They make up the esports division, EFG, which was created after Savvy had previously acquired groups ESL and FACEIT. However, EFG already forms a significant part of the global competitive gaming ecosystem and combines ESL’s strengths in creating, streaming and commercializing premium content with the power of FACEIT as a best-in-class online platform.
Nine66 creates an ecosystem for game developers and studios to thrive by providing the right infrastructure, offering talent and participation opportunities, and providing funding and advisory support. The company also offers publishing services in the Middle East markets, allowing international developers to expand into regional markets.
Specialized in the construction of gaming and competitive venues, VOV aims to develop skills and create a healthy environment for players through the construction of a series of quality facilities that take into account the health and care of all players, which is the first step of its kind worldwide, through providing healthy food, a supportive social environment and motivation for a healthy lifestyle.
VOV opened the first of its locations in May, one of three planned to open soon as the company looks to expand regionally and globally.
The company will also run programs aimed at training and educating young gamers who aspire to enter the competitive esports industry.
The group will also create the first global game studio in Saudi Arabia, which will offer a range of games to a global audience. Specialized teams will be formed to focus on mid-range games – more complex and time-consuming than hyper-casual titles – and will seek to leverage acquisition opportunities available in the kingdom and international markets to bring games and studios under the Savvy Group umbrella .
The strategy also includes the creation of the Savvy Games Fund, which will invest in leading publishers and developers and help establish their bases in the kingdom.
Together, these companies will create synergies across all areas of the gaming and esports industry, growing the sector through targeted investment in developers and publishers, investment in technology innovation, content creator funding, event concept development, and world-class venues.
Savvy Games Group, whose CEO is Brian Ward, former head of Activision Blizzard’s worldwide studio, is a games and esports company founded for the long-term growth and development of esports and the wider gaming industry worldwide. As the global champion of this dynamic sector, Savvy aims to become a global leader in gaming and esports by investing significant long-term capital.
Its investments will create opportunities for participation and development in the sector, regardless of gender, geography, means and abilities. Savvy’s investment is designed to drive the growth of the sector globally, making it a more welcoming, exciting and rewarding destination for fans, players, developers and technology innovators. This will facilitate wider and more equitable access to this fast growing and dynamic sector.
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