VSPO to Boost Esports Growth with Saudi Arabia’s $265M Investment -

Read Time:2 Minute, 32 Second

Savvy Gaming Group, funded by Saudi Arabia’s sovereign wealth fund, will reportedly spend $265 million on Chinese esports organization VSPO (formally, VSPN) as part of the kingdom’s most recent foray into the gaming industry. According to the firm, the agreement would make Savvy the largest institutional shareholder in VSPO and will grant it a little ownership of the company.

With a war chest of more than $30 billion, Savvy was established by Saudi Arabia with the goal of developing the kingdom into a leading gaming center. The kingdom is making investments in everything from the development of electric vehicles to tourism and gaming in an effort to lessen its reliance on oil earnings.

From left, Savvy chief Brian Ward; Prince Faisal bin Bandar, head of the Saudi Esports Federation; VSPO chief Dino Ying; and VSPO chief financial officer Danny Tang, at the signing of the deal in Riyadh

It has set out to become one of the major gaming hubs in the world, and by 2030, it expects the sector to contribute 1% of its GDP.

According to the firm, the agreement will “enable VSPO to continue to execute on its worldwide plan and drive the growth of mobile esports,” with an emphasis on Saudi Arabia. In the upcoming months, the deal will be completed, pending regulatory approvals.

The $600 billion Public Investment Fund, which has been investing in petrodollar surplus in giga-projects and diversifying into industries like domestic electric vehicle manufacture, is the financial backer and the driving force behind the Saudi Arabian gaming strategy. Additionally, it has made significant investments in gaming stocks, including a 5% interest in Nintendo and nearly $3 billion in US game firms like Activision Blizzard.

Prince Faisal bin Bandar, the president of the Saudi Esports Federation, told the Financial Times on Thursday that 68% of the population, who are under the age of 35, identify as gamers. “How we contribute to the global industry is the main goal of all we do,”

The agreement is anticipated to be a big one for Savvy, providing the business a considerable footing in the crucial Asia area. “We are looking forward to diversifying our worldwide footprint alongside VSPO,” Savvy CEO Brian Ward stated.

According to data gathered by Statista, global esports sales reached $1.3 billion last year, up from $996 million in 2020. By 2025, they are anticipated to increase to $1.86 billion.

Saudi Crown Prince Mohammed bin Salman unveiled a $38 billion plan for Savvy Games Group in September of last year with the intention of turning Saudi Arabia into “the ideal worldwide powerhouse for the games and esports sector by 2030.” The expansion of mobile esports will be accelerated by Savvy’s investment, according to VSPO, which has previously sought listings in the United States and Hong Kong. Savvy predicted that the investment would broaden its base.

To diversify its economy and lessen its reliance on oil earnings, Saudi Arabia has been actively investing in a variety of businesses, such as the production of electric vehicles, tourism, and entertainment.