Saudi Arabia to Tighten Spending
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News/Saudi Arabia to Tighten Spending
Saudi Arabia to Tighten Spending
Saudi Arabia’s Public Investment Fund, also known as the PIF, may be running low on money for new projects after several years of big spending in gaming and esports. A new report from The New York Times says the fund does not have much capital ready to use right now because some of its major projects are facing financial trouble.
One of the biggest issues is Neom, a huge futuristic city planned for the Tabuk Province. The project was supposed to show off bold new ideas, but construction problems and planning that some called unrealistic have slowed everything down. Other investments not making a return include a coffee company, a cruise ship business, and an electric car startup. None of these struggling investments are in video games, even though the PIF has poured a lot of money into the games industry in the last few years.
The PIF says its investments add up to almost 1 trillion dollars, but many of these assets are hard to sell and don’t have a clear public value. Because of this, the NYT reported that the PIF told global investors it is “unable to allocate” more funds for now. That is making people wonder how much the fund can really spend.
Still, PIF spokesperson Marwan Bakrali said the fund has 60 billion dollars in cash and in “similar financial instruments”. This shows the fund is not empty, but also not as ready to invest as before. It is a liitle confusing to many observers.
The PIF has also been part of a huge deal to buy Electronic Arts together with Silver Lake and Affinity Partners. The purchase is worth 55 billion dollars and has not closed yet, though EA boss Andrew Wilson thinks it will finish in the first quarter of the 2027 financial year.
More:FaZe Esports Pass Launched
Saudi Arabia to Tighten Spending
Saudi Arabia’s Public Investment Fund, also known as the PIF, may be running low on money for new projects after several years of big spending in gaming and esports. A new report from The New York Times says the fund does not have much capital ready to use right now because some of its major projects are facing financial trouble.
One of the biggest issues is Neom, a huge futuristic city planned for the Tabuk Province. The project was supposed to show off bold new ideas, but construction problems and planning that some called unrealistic have slowed everything down. Other investments not making a return include a coffee company, a cruise ship business, and an electric car startup. None of these struggling investments are in video games, even though the PIF has poured a lot of money into the games industry in the last few years.
The PIF says its investments add up to almost 1 trillion dollars, but many of these assets are hard to sell and don’t have a clear public value. Because of this, the NYT reported that the PIF told global investors it is “unable to allocate” more funds for now. That is making people wonder how much the fund can really spend.
Still, PIF spokesperson Marwan Bakrali said the fund has 60 billion dollars in cash and in “similar financial instruments”. This shows the fund is not empty, but also not as ready to invest as before. It is a liitle confusing to many observers.
The PIF has also been part of a huge deal to buy Electronic Arts together with Silver Lake and Affinity Partners. The purchase is worth 55 billion dollars and has not closed yet, though EA boss Andrew Wilson thinks it will finish in the first quarter of the 2027 financial year.
More:FaZe Esports Pass Launched
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