Saudi Arabia’s Public Investment Fund Reportedly "Running Low on Cash" After Gaming and Mega-Project Investments

Saudi Arabia's Public Investment Fund (PIF), one of the gaming industry's most aggressive investors in recent years, is reportedly running low on available cash for new investments, according to a detailed investigation by The New York Times.

Saudi Arabia’s Crown Prince Mohammed bin Salman and his gaming portfolio | Image via Gaming Amigos

The PIF, which has poured billions into gaming companies and esports organizations over the past few years, finds itself in a challenging position. While the fund claims to hold nearly $1 trillion in assets, a significant portion consists of "hard-to-sell investments with no public valuation." Representatives from the PIF have reportedly told international investors that they're "unable to allocate" additional funds for the foreseeable future.

PIF spokesperson Marwan Bakrali pushed back against concerns, stating the fund maintains $60 billion in cash and "similar financial instruments." However, this represents a notably different picture from the unlimited war chest many in the industry might have imagined when the Saudi fund began its gaming acquisition spree.

Gaming Investments Under the Spotlight

The timing of these reports is particularly noteworthy given the PIF's recent mega-deal. The fund, alongside partners Jared Kushner's Affinity Partners and Silver Lake, is in the process of acquiring Electronic Arts in a $55 billion transaction. What makes this deal especially concerning is that $20 billion of the purchase price was borrowed money, with investors apparently banking on generative AI to deliver significant returns. The EA acquisition is scheduled to close in Q1 of the 2027 financial year.

But EA is just the tip of the iceberg for Saudi Arabia's gaming investments. The PIF holds substantial stakes in some of the industry's biggest players, including Nintendo, Capcom, Nexon, Take-Two Interactive (publisher of GTA 6), and Activision-Blizzard.

The fund also owns Savvy Games Group, which controls studios such as Scopely (Monopoly Go) and Niantic (Pokémon Go). On top of that, Saudi Arabia has poured money into esports, owning some of the biggest organisers like ESL FACEIT Group (EFG), RTS (operator of Evo), and a stake in Hero Esports (the biggest organisers in Asia).

What Went Wrong?

According to the NYT investigation, which drew on information from 11 sources, including current PIF employees, board members, and investors, the fund's financial strain stems from several ambitious projects that have encountered serious difficulties. The most prominent example is Neom, a planned futuristic city that has faced extensive construction delays and cost overruns. The project, which has necessitated the controversial displacement of local populations, carries an estimated price tag of $8.8 trillion.

Other struggling investments mentioned in the report include a coffee chain with only one operational shop, a cruise line with a single vessel, and an electric vehicle startup that hasn't delivered any cars despite being founded three years ago.

None of the projects specifically cited as being in "financial distress" are within the gaming sector, though that doesn't necessarily mean the gaming investments are performing well, just that they weren't singled out as problem areas.

The organization is now reportedly slashing financial projections for various investments and drawing up plans to shift toward more conventional investment strategies, including publicly traded stocks and bonds. The fund aims to double its size to $2 trillion within five years, though it remains unclear how much would come from investment gains versus new capital from the Saudi government.

Behind the scenes, Crown Prince Mohammed bin Salman, described as an avid gamer, has been directly involved in the restructuring efforts. Reports suggest he's already fired leadership at some troubled projects and is maintaining close oversight of the fund's operations.