- Saudi Arabia is positioning itself as a formidable player in the global entertainment market, thereby ensuring its long-term economic sustainability beyond oil dependence.
Saudi Arabia’s sovereign wealth fund Public Investment Fund (PIF) has reduced its stake in Nintendo Co to 7.54 per cent from 8.58 per cent, according to a filing to Japan’s Finance Ministry.
The divestment, which involved the sale of approximately 17.3 million shares between August 21 and October 1, signals a nuanced approach to the PIF’s investment strategy.
Nevertheless, the sovereign wealth fund remains one of Nintendo’s prominent shareholders and continues to maintain significant stakes in other gaming entities, including Koei Tecmo Holdings Co., Nexon Co., and Capcom Co.
The broader context of this transaction lies within Saudi Arabia’s ambitious economic diversification plan. Under the leadership of Crown Prince Mohammed bin Salman, the kingdom is actively seeking to reduce its reliance on oil revenues.
With an investment portfolio exceeding $760 billion, the PIF is strategically acquiring stakes in Japanese and Korean gaming companies as part of a comprehensive $38 billion initiative aimed at establishing an entertainment and gaming hub in the Middle East.
The motivation behind these investments is multifaceted. The Saudi government envisions a thriving entertainment sector that not only shapes the recreational landscape of the region but also contributes to sustainable economic growth.
In this vein, Savvy Games, led by the Crown Prince, aims to collaborate with Japanese partners to localixe video games, leveraging their intellectual property to create a unique market opportunity.
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