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Why is Saudi Arabia in the games business?

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  Published in Business and Finance on Saturday, October 4th 2025 at 13:15 GMT by Polygon
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EA Partners with Saudi Arabia’s Public Investment Fund to Build a Gaming Hub in the Kingdom

In a move that underscores Saudi Arabia’s ambitious Vision 2030 push to diversify its economy away from oil, the world‑renowned video‑game publisher Electronic Arts (EA) has inked a partnership with the Public Investment Fund (PIF), the kingdom’s sovereign wealth arm. According to the Polygon report, the deal will see PIF commit an undisclosed sum—rumored to be in the hundreds of millions of dollars—to establish a new EA studio in Saudi Arabia, with the intent of creating hundreds of jobs and fostering a local talent pipeline.

The Deal in a Nutshell

EA’s spokesperson announced the partnership in a joint press release that cited PIF’s commitment to “accelerate the growth of the Kingdom’s entertainment and creative sectors.” While the exact financial terms were not disclosed, PIF is expected to provide the bulk of the capital, with EA bringing its expertise in game development, publishing, and global distribution. The new studio will be headquartered in Riyadh and will focus on developing titles that can be localized for the Middle‑Eastern market as well as the broader global audience.

The announcement came on the heels of a string of high‑profile PIF investments in the entertainment industry. Earlier this year, PIF announced a $1.4 billion stake in Activision Blizzard, and it has also backed Sony Interactive Entertainment’s “PlayStation Now” cloud service and Warner Bros. Discovery. These moves have positioned the PIF as a major player in the global gaming ecosystem, and EA’s partnership adds another marquee name to its portfolio.

Why Saudi Arabia?

The Kingdom’s Vision 2030, unveiled in 2016, is a blueprint that aims to reduce the country’s economic dependence on oil by investing in sectors such as tourism, entertainment, and technology. The government has already launched a “Saudi Game Development Authority” to support local studios and attract foreign investment. The PIF’s role is to provide the capital and policy backing that can translate Vision 2030’s objectives into tangible economic outcomes.

“We are thrilled to partner with EA, a leader in the gaming world,” said a PIF representative in the Polygon interview. “Our goal is to nurture a vibrant local ecosystem that can produce games that resonate with both regional audiences and the global market.” The partnership is intended to create a pipeline for Saudi talent, offering training, mentorship, and the opportunity to work on high‑profile titles. It also aligns with the government’s broader plan to increase the share of entertainment in GDP from 2 % to 3 % by 2030.

EA’s Middle‑East Footprint

EA is not new to the region. In 2020, the publisher opened a studio in Dubai as part of its strategy to tap into the growing UAE gaming market. The Riyadh studio will build on that foundation, leveraging Saudi’s growing youth demographic—about 40 % of the population is under 25—and the country’s increasing digital infrastructure.

EA’s own global experience in titles such as “Battlefield,” “FIFA,” and “The Sims” will provide a strong template for the new studio. The partnership also offers PIF the chance to gain firsthand insight into the global game development pipeline, which can inform future domestic initiatives.

What Comes Next?

The Polygon article notes that the next few months will see a formalization of the studio’s structure, the hiring of key creative and technical talent, and the identification of a flagship project that can showcase the partnership. In the longer term, the studio could spin off its own IPs, potentially licensing them for local adaptation and overseas release.

PIF’s statement highlighted that the investment will not be limited to capital. “We will provide policy support, access to government incentives, and a regulatory framework that encourages innovation,” the PIF spokesperson added. This comprehensive support package is intended to ensure that the new studio can operate smoothly and scale rapidly.

The Broader Impact

The EA‑PIF partnership is emblematic of a broader trend: a wave of foreign investment flowing into Saudi Arabia’s entertainment sector. In addition to gaming, the kingdom is courting Hollywood studios for film production, has opened a new sports arena, and announced plans for a “Future City” that will showcase cutting‑edge digital experiences.

The partnership also positions the Saudi gaming market as a potential export hub. With a population that spends an estimated $1.2 billion on digital entertainment each year, the country could become a lucrative market for game publishers. Moreover, by building a domestic studio, Saudi Arabia can retain a larger share of the value chain—something that has historically been dominated by foreign companies.

Final Thoughts

While the exact financial terms of EA’s partnership with PIF remain undisclosed, the announcement signals a clear intent from both parties to invest in a future where digital entertainment is a pillar of the Saudi economy. The move also showcases how sovereign wealth funds like PIF are pivoting from traditional asset classes to high‑growth sectors such as gaming and entertainment, aiming to build a diversified economy that can sustain the kingdom in the post‑oil era.

The Polygon article closes with a note that the partnership will be closely watched by industry insiders, as it could set a precedent for other foreign publishers looking to tap into the Middle‑Eastern market while contributing to Saudi Arabia’s broader Vision 2030. As the new studio takes shape, the world will be keen to see which game titles—and which Saudi talents—will emerge from this bold collaboration.