After a Premier League Club, Saudi Arabia’s PIF Invests $1 Billion in Capcom and Nexon To Increase Gaming Stakes

2022 has just started and we have already seen massive mergers, acquisitions, and funding in the video games industry. That trend now continues with a rather uneexpected investor.

A report has confirmed Saudi Arabia bought almost $1 billion worth of shares into Capcom and South Korean publisher Nexon as a part of their venture into tech and gaming. This is the latest of Saudi’s push into investments in the global Tech and Gaming sectors. Updates from the country’s Public Investment Fund declared that Saudi Arabia now owns over 5% in both companies Capcom and Nexon.

Previously, the country acquired over $3 billion worth of stocks in several major gaming companies such as Activision Blizzard, Electronic Arts, and Take-Two Interactive. And another large investment from Saudi Arabia brought in 33% of shares into the SNK Corporation, making them the largest shareholder in the veteran Japanese developer.

All of the Tech focused investments come from the aforementioned Public Investment Fund, which is supposedly key to Crown Prince Mohammed bin Salman’s goal of making their country less dependent on revenue from their vast oil reserves, as well as an attempt to boost non-oil growth and reduce dependence on crude oil as climate change campaigners continue to put pressure on governments around the globe.

Investing in the Tech and Gaming sector is a smart move to diversify Saudi’s portfolio for their wealth fund and is seemingly a great step toward to changing their global image. As a part of this diversification, PIF also recently took over a Premier League club Newcaste United.

PIF’s website states their goal is to be a “a global investment powerhouse and the world’s most impactful investor, enabling the creation of new sectors and opportunities that will shape the future global economy, while driving the economic transformation of Saudi Arabia”.