Saudi Arabia-backed group to invest $265mn in Chinese esports company VSPO

Saudi Arabia-backed group to invest $265mn in Chinese esports company VSPO

Saudi Arabia’s sovereign wealth fund-backed Savvy Games Group will invest $265mn in Chinese esports company VSPO, in the kingdom’s latest push into the gaming market.

The deal announced on Thursday would give Savvy a minority stake and make it VSPO’s single largest equity holder, the company said.

Saudi Arabia has ambitions to become a top gaming hub and created Savvy to invest in and develop the industry in the kingdom with a war chest of more than $30bn.

The kingdom is trying to reduce its reliance on oil revenues, investing in everything from electric vehicle production to tourism and gaming.

It has set out a target to become one of the world’s main gaming hubs, with the industry expected to contribute 1 per cent to its gross domestic product by 2030.

The deal would “help VSPO continue to deliver on its global strategy and accelerate the growth of mobile esports” with a particular focus on Saudi Arabia, the company said. The deal will be finalised in the coming months subject to regulatory clearances.

Saudi Arabia’s gaming strategy is being bankrolled and led by the $600bn Public Investment Fund, which has been channelling a petrodollar surplus into giga-projects and branching into sectors such as homegrown electric vehicle