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Saudi Arabia’s ambitious plan to invest $38 billion in the global video game industry is facing new uncertainty as the ongoing war involving Iran disrupts the broader Middle East region.
The kingdom has spent years positioning itself as a future center for gaming, esports, and entertainment as part of its Vision 2030 strategy to diversify the economy away from oil.
However, recent attacks linked to the conflict have raised concerns among investors and industry leaders about regional stability.
Brian Ward, chief executive officer of Savvy Games Group, said escalating tensions could affect how business leaders and gamers view the region in an interview with Bloomberg at the Game Developers Conference in San Francisco.
“It’s obviously not helpful for the region to have this escalation, and it will probably change or cool the perception of it as being a stable and quiet place where people want to go,” Ward said.
Ward added that the long-term outlook could remain positive if the conflict ends quickly. “Hopefully it will be short-lived, and we’ll get back to business,” he said.
Savvy Games Group, which operates under Saudi Arabia’s Public Investment Fund (PIF), has led the kingdom’s aggressive expansion into the gaming sector.
The company aims to attract the world’s estimated 3.6 billion gamers by building infrastructure for major esports tournaments and gaming events. A central element of this strategy is a dedicated gaming district in Qiddiya City, a large entertainment project under construction near Riyadh.
Promoted as the “first city built for play,” Qiddiya will include theme parks, golf courses, creative studios, and arenas designed to host competitive gaming tournaments.
The initiative has already drawn international attention. The Esports World Cup held in Saudi Arabia in 2025 attracted about three million visitors over its seven-week run.
Savvy has invested more than $13 billion in the sector so far, including about $2 billion for esports infrastructure. The company also aims to grow domestic game studios and attract international developers and industry talent.
Ward said one of Savvy’s goals is to bring foreign investment into Saudi Arabia’s gaming industry and encourage large global companies to establish operations in the country.
The conflict involving Iran has raised concerns that the region may appear less stable to investors and international partners.
These perceptions could complicate Saudi Arabia’s attempt to build a cultural hub for gaming, sports, and entertainment under Vision 2030.
Savvy currently generates about 35% of its revenue from eastern markets, a share Ward hopes to increase to 50% as the company expands its global reach.
The Public Investment Fund also plays a major role in global gaming finance. It is the lead investor in a $55 billion buyout of Electronic Arts, the publisher behind popular franchises including Battlefield, The Sims, and Madden NFL. Ward said the transaction is expected to close sometime this summer.
At the same time, the sovereign fund recently transferred billions of dollars in gaming stock holdings to Savvy, a move Ward said could help generate liquidity for future acquisitions.
The regional conflict is also affecting other major investment projects. Wynn Resorts, which is building a casino in the United Arab Emirates, said construction briefly paused because of the fighting before resuming work.
Recent strikes across the region have hit hotels, residential buildings, and military targets, adding to concerns about the broader economic impact of the war.
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