Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), has increased its investment in the video gaming sector by raising its stake in Japan-based Koei Tecmo. According to a disclosure to the Japanese Ministry of Finance, the PIF now holds a 6.60 percent stake in the company, up from 5.56 percent.
Koei Tecmo, which was founded in 2009 through the merger of Koei and Tecmo, is renowned for developing popular video games such as Nobunaga’s Ambition, Dynasty Warriors, Atelier, and Ninja Gaiden. The company has also created notable titles like Dead or Alive, Monster Rancher, Fatal Frame, and Nioh.
Moreover, this move by PIF is in line with the objectives outlined in Saudi Arabia’s Vision 2030, a plan aimed at diversifying the country’s economy away from oil. As part of this vision, Saudi Arabia’s Crown Prince Mohammed bin Salman launched the Savvy Games Group’s strategy in September 2022, allocating a $37.7 billion investment budget to the video gaming industry. The goal is to contribute $13.3 billion to the Kingdom’s gross domestic product (GDP) from the video game sector by 2030.
Also, over the past two years, the PIF has been actively investing in the video game sector. Additionally, in February 2023, the fund increased its stake in Nintendo Co. to 8.26 percent, making it the largest external investor in the renowned Japanese gaming company. Nintendo is known for its popular franchises such as Pokemon, The Legend of Zelda, and Mario.
In addition to Nintendo and Koei Tecmo, the PIF also holds shares in other gaming companies like Nexon and Capcom. In 2021, the fund acquired a stake in Activision Blizzard, the developer of Call of Duty, with an estimated value of $3.6 billion.
Read more: Saudi PIF plans to sell 10 percent of its stake in Tadawul
MEPCO
On Thursday, Saudi’s PIF bought a 23.08 percent stake in the Middle East Paper Company (MEPCO). The development came as the fund continued to expand its portfolio in key sectors of the kingdom’s economy.
أعلن #صندوق_الاستثمارات_العامة اكتمال استثماره في شركة الشرق الأوسط لصناعة وإنتاج الورق (مبكو)، الرائدة في صناعة وتدوير المنتجات الورقية في منطقة الشرق الأوسط وشمال أفريقيا.
— صندوق الاستثمارات العامة (@PIFSaudi) January 4, 2024
PIF acquired the stake in the Tadawul-listed MEPCO by increasing capital and subscribing to new shares, it said.
The total value of the investment was not disclosed.
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