Riyadh (TDI): Shares of Kyoto-based Nintendo Co. increased by 3.9% on news that Saudi Arabia’s Public Investment Fund (PIF) may raise its holdings in the Japanese video game giant and other companies.
Kyodo News broke the story first. Prince Faisal bin Bandar, vice chairman of PIF’s subsidiary Savvy Games Group, remarks that they intend to make more investments in the industry with the help of the participating companies.
With an approximate 7.6% ownership stake, PIF, which oversees assets valued at $760 billion, is already among Nintendo’s top shareholders.
As part of Saudi Arabia’s plan to diversify its economy beyond oil, the sovereign wealth fund has placed large stakes in the gaming sector to make the kingdom a global hub for gaming.
The fund has also made previous investments in Activision Blizzard (now part of Microsoft), Tencent Holdings, and Kakao Entertainment, among other gaming and entertainment companies.
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“It’s noteworthy that this is a national policy being implemented by the Saudis. This kind of interest is what we anticipate to spread,” Ryoutarou Sawada, a senior analyst at the Tokyo Intelligence Laboratory, as per a Bloomberg story.
The company’s intention to reach a worldwide audience is supposed to be supported by PIF’s potential investment in Nintendo.
Gains were also realized by other gaming companies that received funding from Saudi Arabia. Shares of Capcom Co. and Koei Tecmo Holdings Co. increased by 2.8% and 3%, respectively, while Nexon Co. witnessed a 3% increase in value.
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Saudi Arabia has been investing billions in tourism and content creation as part of an overall effort to attract gaming and tech companies to the Middle East.
One example is a theme park away from Riyadh featuring characters from the well-known Japanese manga series Dragon Ball.
