Saudi Arabia secures seat at top table of global gaming sector with record EA buyout

At a dazzling ceremony this past summer, Saudi esports giants Team Falcons were handed the Esports World Cup trophy by Crown Prince Mohammed bin Salman in Riyadh. The event, which attracted an astonishing three million visitors to the Saudi capital, underscores the Kingdom’s ambitions to position itself as the epicentre of the global gaming industry.

Saudi Arabia’s steady but bold stride into video gaming reached a new milestone this week as its sovereign wealth fund, the Public Investment Fund (PIF), led a buyout of Electronic Arts for $55bn – marking the largest leveraged buyout in history. The acquisition hands the Kingdom access to some of the industry’s major titles, including EA Sports FC, Battlefield and The Sims, spotlighting Saudi ambitions to become a power player in the $184bn gaming market, which now outperforms both film and music industries combined.

Crown Prince Mohammed bin Salman, originally described as a “massive gamer”, now stands as co-owner of one of gaming’s most valuable studios. His government’s $38bn investment drive for the sector by 2030 has already seen stakes amassed in Nintendo and Capcom, as well as ownership of Savvy Games Group and a six percent shareholding in Grand Theft Auto publisher Take-Two Interactive. This is despite instances of Saudi censors previously banning titles including GTA and those with content involving same-sex relationships or marriages.

Analysts observe that the investment thrust serves purposes beyond financial return, providing a substantial boost to Saudi Arabia’s soft power. Piers Harding-Rolls of Ampere Analysis notes that the value of EA cannot be measured solely in monetary terms, since the deal supports the Saudis’ broader strategy of reputation management and influence projection via entertainment and sports. Access to blockbuster sporting franchises, such as Madden and the Ultimate Fighting Championship, aligns neatly with parallel ambitions for boxing, martial arts, and football within the kingdom. With the 2034 World Cup on the horizon, connections between gaming, sport, and Saudi leadership are ever more entwined.

The deal also enriches the Kingdom’s ties with influential American political and business figures. Former Trump adviser Jared Kushner, through Affinity Partners, will hold a five percent share, while the PIF remains the principal owner. The partnership is expected to cement Saudi interests in the sector and facilitate deeper links with Washington policymakers.

While the government pursues technological diversification to offset oil dependency and address its budget deficit, critics assert that the campaign constitutes a programme of “reputation washing”. High-profile investments across football, golf, and now video games are believed by some to be an effort to makeover the nation’s international image, which remains troubled by human rights concerns and low press freedom rankings. Some in the esports and game development spheres have actively resisted this wave of Saudi expansion, questioning the ethical implications of collaboration or participation.

The financial structure of the deal, with $20bn in debt, has fuelled speculation about future lay-offs and restructuring at EA, despite assurances from chief executive Andrew Wilson that core values and commitments to players are unchanged. The acquisition will inevitably fall under US national security scrutiny, though observers regard substantive barriers as unlikely thanks to influential supporters. The move signals Saudi Arabia’s dramatic ascent within the global gaming landscape, and marks a decisive shift in both the economics and geopolitics of the sector.