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Saudi’s PIF buys $1bn stake in Sweden’s Embracer gaming group
Saudi Arabia’s Public Investment Fund (PIF) is taking a stake in Swedish video game maker Embracer one month after investing in Japan’s video game giant Nintendo.
Saudi Arabia’s sovereign wealth fund made its fourth investment in the gaming sector so far this year.
PIF is investing $1 billion to purchase 99.9 million B-shares in Embracer. It is investing in its own Savvy Gaming Group (a gaming and e-sports group PIF set up in January).
Brian Ward (below), CEO of Savvy Gaming Group, said, “The Embracer team has built a truly unique and leading ecosystem of entrepreneurs and creators at a scale which we believe will continue to generate enormous value for the games community in the coming years,”
As part of Saudi Arabia’s economic diversification, Last month, the $500-billion sovereign wealth fund acquired a 5.01 percent stake in Japanese gaming company Nintendo.
The Nintendo stake follows the PIF’s recent disclosure of stakes in two other Japanese gaming companies – Nexon and Capcom, which the fund disclosed in February.
“Savvy Gaming Group will enable us to set up a regional hub in Saudi Arabia, from which we can make investments across the MENA region, organically, via partnerships, joint ventures, or via acquisitions of companies led by strong entrepreneurs.” Lars Wingefors, founder and chief executive of Embracer, commented.
“I think it’s an investment spree to diversify their portfolio out of oil and energy,” Nazih Fares, head of communications and localization at 4 Winds Entertainment, a games publisher, said.
“But when you compare it to the rest of the Gulf, especially UAE, the Saudi funds are in general a bit late on making an international impact on their ‘brand.’ Look at all the big football and other sports teams sponsored by UAE or Qatari brands, for example.”
Resume “the rush to get to that level for Saudi Arabia will take longer, but “investing directly in big brands will help catch up on that diversification of revenue generated by those same international companies.”
“The $1 billion investment is part of its strategy to have a diverse range of forward-looking shareholders who support its long-term business plans,” Fares explained.
Over the past few years, Saudi-based entities have become one of the most significant investors in the global gaming market. The games market in MENA is one of the world’s fastest-growing, with $5.7 billion in 2021 revenues and more active gamers than either the US or Western Europe.
Lars Wingefors said, “The largest country in this market, by far, is Saudi Arabia, and having visited Saudi Arabia, I have seen the gaming community and the opportunities firsthand,”
According to the Boston Consulting Group (BCG), Gaming consumption in Saudi Arabia is estimated to reach $6.8 billion by 2030.
BCG report stated, “These figures point to plenty of untapped potential as more young Saudis pursue careers in game development, management, and esports competition,”
It is worth mentioning that Last year, the PIF boosted its stake in US video game maker Activation Blizzard to $15.9 billion.
“The gaming ecosystem in the MENA region is exciting on several levels, primarily due to the sector’s expansion mechanics and growth velocity – we are experiencing sustained year-on-year growth to the tune of CAGR 15.8 percent.” Matthew Pickering, CEO of Power League Gaming (gaming and esports agency).
Combined with a youthful, hyper-engaged regional population with fast tech adoption rates and high levels of mobile penetration, this presents “exciting opportunities for further sustained development and provision of experiences by agencies and publishers alike to deliver value for gamers and brand partners and sponsors alike.”
Lendo, a Saudi Arabia-based Shariah-compliant crowdlending marketplace, has signed a Memorandum of Understanding (MOU) today with J.P. Morgan to improve access to financing for small and medium-sized enterprises (SMEs) across the country.
The MOU was signed during 24 Fintech, a premier fintech event that brings together industry leaders, innovators, and investors in Riyadh.
J.P. Morgan and Lendo are working together on potential opportunities to support the SME sector in Saudi Arabia in growing and sustaining the remarkable demand in this market.
“This strategic collaboration with J.P. Morgan, a pioneer in the financial industry, marks a significant milestone for Lendo,” said Osama Alraee, CEO and co-founder of Lendo. “By combining our strengths, we’ll deliver cutting-edge financial solutions to SMEs, supporting their growth and contributing directly to the realization of Saudi Arabia’s Vision 2030.”
The SME financing landscape in MENA presents a substantial market opportunity as limited financial access continues to restrict the growth of the region’s businesses, with commercial banks hesitant to issue loans to SMEs at scale, resulting in a high percentage of declined financing requests annually.
The total SME financing gap in developing countries is estimated to be approximately $5.2 trillion, according to the International Finance Corporation (IFC).
Lendo’s debt crowdfunding platform aims to bridge the financing gap for SMEs, aligning with Saudi Vision 2030’s goal to significantly expand SME lending from 4% in 2018 to 20% by 2030.
According to the latest available report from the Saudi Central Bank (SAMA), the total value of debt crowdfunding in Saudi Arabia surged from SAR 1.4 million in 2019 to SAR 771 million in 2022, marking a remarkable growth.
Lendo raised SAR 132 million ($35.2 million) in total funding from leading investors, including the most recent Series B led by Sanabil Investments, a wholly-owned company by the Public Investment Fund (PIF).
Since its inception in December 2019, Saudi fintech Lendo has processed over 5,000 financing transactions on its platform, providing over SAR 2 billion ($600 million) in financing to SMEs and generating SAR 280 million ($74 million) in returns for investors.
TA Telecom, a prominent player in the Middle East’s tech sector, has unveiled AnteThink, an AI-driven tool designed to enhance decision-making processes for individuals and businesses alike.
With a history of influencing the tech landscape through various initiatives, including advanced mobile solutions, high-volume payment platforms, and ventures in e-commerce, fintech, and analytics, TA Telecom has carved a niche for itself. Serving a vast user base of 40 million and processing an impressive 15 billion transactions across its platforms, TA Telecom has cemented its position as a tech industry leader, with some of its ventures achieving the status of Y Combinator companies.
Established in 2000, TA Telecom has emerged as a prominent player in the technology sector. With over 40 million users and processing 15 billion transactions annually, TA Telecom has made a notable impact. Recognized for its contributions by the Financial Times and featured on Deloitte’s list of fastest-growing tech companies in EMEA, TA Telecom is known for its adaptability and forward-thinking approach in the ever-evolving global tech landscape.
Sameh Ibrahim, CEO of TA Telecom, highlights the potential of AnteThink: “AnteThink reflects our commitment to leverage technology for practical impact. It aims to provide clarity and confidence in decision-making, whether in the professional or personal sphere. AnteThink is a tool that can empower startup founders, executives, and individuals to make more informed choices, alleviating the stress and uncertainty often associated with critical decision-making.”
Mostafa Ashour, CEO of Y Combinator-backed startup NowPay, shared his perspective on AnteThink: “AnteThink transformed our strategic planning, allowing us to explore various scenarios and prepare for different outcomes. It has strengthened our decision-making process, helping us navigate the complexities of the business landscape.”
AnteThink embodies TA Telecom’s commitment to innovation, focusing on supporting the startup ecosystem. The tool is tailored to help leaders and executives navigate the complexities of business management and strategic development by providing a clear picture of potential outcomes.
Key Features of AnteThink include:
1. Second Order Mode: Offering a comprehensive analysis of broader impacts, fostering a strategic mindset for long-term success.
2. Optionality Mode: Enabling detailed evaluation and comparison of different choices to ensure decisions align with strategic objectives and values.
3. Inversion Mode: Focusing on identifying and mitigating potential risks, thereby strengthening risk management strategies.
Credit: Antethink
AnteThink’s advanced AI technology aims to assist decision-makers with insightful analytics, offering guidance through the decision-making process.
Selina Bieber, the Senior Director of Global Markets at GoDaddy, has predicted a significant increase in Egypt’s e-commerce revenue. By 2028, it could reach $9.88 billion.
Godaddy is forming strategic partnerships and launching initiatives to help local entrepreneurs. These efforts align with Egypt’s digital transformation goals and its Vision 2030.
In an interview with the Arabic financial news “Amwal Al Ghad,” Bieber spoke about GoDaddy’s plans and how they match Egypt’s 2023 strategy. She highlighted the company’s aim to provide effective, easy-to-use digital tools and services. By 2024, GoDaddy wants to serve more customers in Egypt by making its digital tools more widespread.
The company is working closely with the Egyptian government, especially the Ministry of Planning. They are offering training programs to improve the digital skills of startups and existing businesses. GoDaddy’s services in Egypt include domain registration, web hosting, e-commerce solutions, and digital marketing tools.
Recent surveys support Bieber’s positive outlook for e-commerce in Egypt. They show a clear trend towards digital strategies among small businesses. Many are realizing the importance of having an online presence for their growth and success.
As GoDaddy continues its partnerships and supports government digital initiatives, its influence on Egypt’s digital landscape is growing. The company is committed to sustainability and reducing its carbon footprint. It aims not just for business growth but also to contribute to a sustainable and thriving digital economy in Egypt.
The 2028 projection indicates a vast potential for e-commerce, with GoDaddy playing a key role in this digital evolution.
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