- The diversification strategy emphasises economic transformation through investment in industries such as games and animation.
Saudi Arabia’s Public Investment Fund (PIF) is contemplating increasing its shares in prominent Japanese gaming companies, including the renowned Nintendo Co.
The initiative reflects a broader strategy to pivot from an oil-dependent economic model to a more varied entertainment landscape.
Prince Faisal bin Bandar bin Sultan Al-Saud, vice chair of the fund’s gaming subsidiary, Savvy Games Group, told Kyodo News that the transfer of shares to this entity is aimed at fostering synergies and enhancing growth within Saudi Arabia’s entertainment sector.
The PIF currently holds significant stakes in several Japanese firms, including an 8.58 per cent share in Nintendo, known for its iconic Super Mario Bros. franchise, and an 8.97 per cent stake in Koei Tecmo Holdings.
The fund has also invested in other game developers such as Nexon and Capcom.
Strategic shift
The diversification strategy aligns with Saudi Arabia’s Vision 2030, which emphasises economic transformation through investment in industries such as games and animation.
The Crown Prince, Mohammed bin Salman, who chairs Savvy Games, is a driving force behind this strategic shift. The government’s intent is not merely to invest but to also enhance collaboration with Japanese companies, leveraging their intellectual property for localised content that resonates with diverse audiences.
The collaboration aims to capitalise on the growing worldwide demand for gaming and multimedia experiences, as evidenced by the successes of adaptations like “The Super Mario Bros. Movie” and various cinematic ventures from Square Enix.
Furthermore, Saudi Arabia’s development of an entertainment city, Qiddiya, exemplifies its commitment to creating a thriving entertainment ecosystem that encompasses various attractions, including esports facilities and thematic parks.
As the country navigates its economic transformation, maintaining open lines of communication with partners in Japan is paramount, as emphasised by Prince Faisal. The intention is to approach future investments thoughtfully and consensually, ensuring a collaborative path forward.