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Saudi Arabia has just made headlines worldwide with its record-breaking $55 billion acquisition of Electronic Arts (EA). This is the largest leveraged buyout in history. This isn’t just a normal business deal—it’s a masterstroke that puts Saudi Arabia at the center of the entertainment industry.
The Massive Deal That Shocked the Gaming World
Saudi Arabia’s Public Investment Fund (PIF) led a consortium to purchase EA, the developer of some of the gaming world’s biggest franchises, such as FIFA (now EA Sports FC), Battlefield, The Sims, and Madden NFL. The deal also included Silver Lake Partners and Jared Kushner’s Affinity Partners. Shareholders received $210 per share in cash—a 25% increase from EA’s trading price.
With this acquisition, EA has gone from a public company to a private one, meaning the Saudi-led consortium now has complete control over EA’s most valuable gaming IPs. EA’s football games alone have sold 325 million copies since 1993, with The Sims surpassing 200 million, and Need for Speed surpassing 150 million.
Why Saudi Arabia Spent $55 Billion on Gaming
Vision 2030: A Plan Beyond Oil
This major investment is directly linked to Saudi Arabia’s Vision 2030 initiative, whose primary goal is to diversify its economy away from oil dependence. Even today, 40% of Saudi Arabia’s wealth comes from oil and gas, but the government recognizes that new revenue sources are needed.
The gaming industry is a perfect fit. The Saudi Arabian gaming market is experiencing 8% annual growth—double the world average. Furthermore, 67% of the Saudi population (23.5 million people) are already active gamers. This means the domestic market is very strong.
The National Gaming & Esports Strategy
The acquisition of EA is just one step. In 2022, Saudi Arabia launched its National Gaming and Esports Strategy, with a target of becoming one of the top three gaming and esports countries by 2030.
Targets include:
- Creating 39,000 new jobs in the gaming sector
- Establishing 250 gaming companies
- GDP contribution of SAR 50 billion ($13.3 billion)
- Hosting 30 gaming competitions annually
- Strategic Advantages of Owning EA
- Cultural Soft Power
In the words of Games Industry editor Christopher Osborn: “This news is a huge boost for Saudi Arabia’s soft power strategy. EA is an ideal company to further strengthen their influence.”
Gaming is a tool for cultural diplomacy. As one analyst put it: “Imagine a mother buying an EA Sports FC game at a store. She doesn’t have geopolitics in mind—she’s just buying it for fun. And that’s the brilliance of the Saudi approach—they want to be associated with fun.”
Economic and Tourism Benefits
The acquisition of EA fits perfectly with Saudi Arabia’s entertainment plans. Saudi Arabia already hosts Formula 1, world concerts, and the Esports World Cup. Now, through EA’s IP, they can directly link gaming experiences with their tourism strategy.
The Qiddiya project is PIF’s mega-project in Riyadh, which plans to attract 10 million visitors annually by 2030. Its gaming district will incubate 30 game development companies, creating a full gaming ecosystem.
What does this mean for the global gaming industry?
This deal is a game-changer not just for Saudi Arabia, but for the entire gaming industry. Now, gamers around the world will feel Saudi Arabia’s influence indirectly to a large extent, whether through games or events.
Potential Changes for Gamers
In the short term, EA’s popular franchises like FIFA, Battlefield, The Sims, etc. will continue as they are currently. But now that EA is privately owned, they will have the opportunity to take more creative risks and invest heavily in esports—without the quarterly pressure of the public market.
Industry analysts predict the following changes gamers could see after this deal:
- Larger-scale live services
- More cross-platform integration
- Global-level gaming tournaments
- Rich storytelling and better online infrastructure
- Concerns About Debt and Jobs
This acquisition also includes $20 billion in debt financing, arranged through JPMorgan. Some analysts believe that such a large debt could pressure EA to focus primarily on proven franchises, rather than new experimental projects.
There are also concerns about jobs, as EA cut 5% of its workforce by 2024 and laid off a few hundred employees in May.
Saudi Arabia’s Gaming Investment Portfolio
Savvy Games Group: The Gaming Powerhouse
The acquisition of EA is another major move by Saudi Arabia’s Savvy Games Group, which was established by PIF in 2021 to drive long-term growth in the global games and esports industry.
Savvy’s major investments include:
- Scopely acquisition for $4.9 billion (2023)
- ESL FACEIT Group merger (world’s biggest esports company)
- 8% stake in Embracer Group ($1 billion)
- Investments in Nintendo, Activision Blizzard, Take-Two Interactive
Record-Breaking Events & Infrastructure
Saudi Arabia is already demonstrating gaming excellence through its world-class events.
The Esports World Cup 2024 in Riyadh had a record prize pool of $60 million (23 tournaments, 22 games).
Gamers8 Festival 2023 attracted 1.5 million visitors and boasted a $45 million prize pool. This is making Saudi Arabia a top gaming destination.
Economic Impact & Job Creation
Saudi Arabia has committed $38 billion to develop the gaming and esports sector through the PIF—more than the entire budget of many countries. This demonstrates its serious plan to become a global gaming hub.
Developing local talent is also a major part of the strategy. Nearly 1,000 Saudi gamers have already entered full-time esports careers. Educational programs like Game Changers (a collaboration between the Ministry of Communications and DigiPen Academy) are creating career pathways for young professionals.
International Reactions & Concerns
Sportswashing Allegations
Critics, including Amnesty International, say Saudi Arabia is using gaming and sports investments as a form of “sportswashing”—to distract from human rights issues. But Crown Prince Mohammed bin Salman has stated clearly that he doesn’t care about labels: “I don’t care, as long as my GDP is growing by 1%.”
Jared Kushner’s Role
Jared Kushner’s Affinity Partners is also involved in this deal, which gives it a political angle. Kushner formed his company in 2021 with funding from Saudi Arabia, Qatar, and the UAE. He played a major role in shaping this deal.
Future Implications and Global Competition
Challenge to Silicon Valley and Tokyo
Following the EA acquisition, Saudi Arabia is now directly competing with traditional gaming hubs like Silicon Valley and Tokyo. One expert said: “This isn’t just a spreadsheet deal. This is Saudi Arabia buying time, talent, and cultural power all at once.”
Technological Innovation Hub
Saudi Arabia’s gaming plans aren’t limited to entertainment. They want to become a world testbed for game-tech innovation and lead the immersive sports gaming market.
The NEOM project, their mega-city plan, is building a proper gaming hub—including game development studios, motion capture facilities, and incubation zones.
The Bigger Picture: A New Global Gaming Order
Saudi Arabia’s $55 billion EA investment isn’t just a business deal—it’s an open declaration that it wants to reshape the global gaming industry. With finance, strategy, and a young, gaming-passionate population, Saudi Arabia is positioning itself as the interactive entertainment hub of the future.
This deal is an example of how countries can utilize entertainment industries to diversify their economies, gain cultural influence, and advance technology. Gaming is no longer just a hobby, but an economic force and a cultural phenomenon.
This bold move by Saudi Arabia may become a moment remembered in history—when the gaming industry’s center of gravity shifted toward the Middle East.
Of course, success will depend on execution, but with a clear roadmap for Vision 2030 and unlimited financial backing, Saudi Arabia has established its position as a potential gaming capital of the world.
