West Asia Crisis Threatens Saudi Arabia’s $38B Gaming Goal
The conflict in West Asia is raising alarms for those involved in Saudi Arabia’s ambitious initiative to invest $38 billion in establishing itself as a global video-game hub. “It’s obviously not helpful for the region to have this escalation and it will change probably or cool the perception of it as being a stable and quiet place where people want to go,” Brian Ward stated during an interview. In the long run, Ward maintains that the region will continue to attract consumers and investors once the conflict has concluded. “Hopefully it will be short lived and we’ll get back to business,” he stated. Savvy, a division of the Saudi Public Investment Fund, is making significant investments in infrastructure to draw the world’s 3.6 billion gamers to the country for competitive esports and other events. The plans encompass a gaming district within Qiddiya City, an entertainment destination currently under construction near Riyadh, where Savvy is headquartered. Referred to as “the first city built for play,” Qiddiya boasts amusement parks, golf courses, and studios designed for creative endeavors. It also encompasses venues for video-game competitions.
The tourism initiative has achieved notable success, attracting three million visitors during the seven-week duration of the Esports World Cup in 2025. Recent attacks on Saudi Arabia by Iran are affecting business leaders’ confidence in the nation’s ambition to evolve into a cultural hub for video games, sports, and entertainment — a multifaceted strategy to reduce dependence on oil known as Vision 2030. Savvy has made an investment exceeding $13 billion to date, which includes $2 billion allocated to esports infrastructure. The company aims to expand domestic video game studios and draw in international talent. According to Ward, one of Savvy’s goals is “to try and encourage foreign investment” in the Saudi games industry and “to get big companies to move there, bring leadership and create jobs.” Savvy’s Steer Studios, located in Riyadh, employs approximately 90 individuals.
The kingdom’s geopolitics place it in a favorable position to spearhead investment in the swiftly expanding Chinese gaming market, as well as the Western market — particularly as US officials scrutinize Tencent Holdings Ltd.’s video-game business for potential security risks. According to Ward, today, 35 per cent of Savvy’s revenue is derived from the East. He aims to achieve that target of 50 per cent. The Public Investment Fund is the principal investor in a $55 billion acquisition of Electronic Arts Inc., the firm responsible for popular video games such as Battlefield, The Sims, and Madden NFL. The deal is expected to close “sometime this summer,” Ward said, adding that Savvy is not involved directly. However, it remains a “possibility” that EA could move under Savvy one day.
The fund has recently shifted its positions in billions of dollars worth of gaming stocks to Savvy — a strategy Ward indicated could create liquidity for further acquisitions. Savvy shares concerns about the war with many others. Wynn Resorts Ltd., currently engaged in the development of a casino in the United Arab Emirates, announced on Wednesday that it has resumed construction following a brief halt related to the ongoing conflict. Throughout the region, hotels, apartment buildings, and military targets have been struck.
