Saudi Arabia has acquired a $1 Billion stake in Embracer Group
Saudi Arabia has purchased a $1 billion stake in Embracer Group, acquiring 8.1% of the company’s shares.
Following the deal’s completion, the country’s Public Investment Fund (PIF) – through its subsidiary, Savvy Gaming Group – will be the second-largest owner of Embracer Group shares.
PIF is a sovereign wealth fund chaired by crown prince Mohammed bin Salman, and is is reportedly central to his goal of making the Saudi economy less reliant on proceeds from oil.
The Embracer deal is the latest in a line of investments in video game companies, which may raise concerns for some, given Saudi Arabia’s longstanding history of human rights abuses. The crown prince in particular has been accused of ordering the murder of journalist Jamal Khashoggi.
In a statement, Embracer founder and group CEO Lars Wingefors said: “Savvy Gaming Group’s investment of $1 billion enables us to continue executing our strategy proactively from a position of strength across the global gaming industry.
“Over the past few years, Saudi-based entities have become one of the most significant investors in the global gaming market, and the games market in MENA is one of the world’s fastest growing, with $5.7 billion in 2021 revenues and more active gamers than either the US or Western Europe.
“The largest country in this market, by far, is Saudi Arabia, and having visited Saudi Arabia, I have seen the gaming community and the opportunities first-hand.
“Our relationship with Savvy Gaming Group will enable us to set up a regional hub in Saudi Arabia, from which we will be able to make investments across the MENA region, either organically, via partnerships, joint ventures, or via acquisitions of companies led by strong entrepreneurs.”
Earlier this year, the prince’s
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