Saudi Arabia’s Public Investment Fund is reportedly running low on cash, following investments into projects in financial distress.
The claim comes from a new report from The New York Times, published as the crown prince of Saudi Arabia visits Washington, having spoken to a number of sources briefed on the country’s operations.
Projects in financial distress include Neom, the planned utopian metropolis that’s run into extensive construction issues, as well as a coffee chain, a cruise line, and an electric vehicle start-up.
The PIF claims it holds nearly $1 trillion in assets, but a “huge portion” of these are hard-to-sell assets with no public valuation. According to the NY Times, international investors have been told the PIF is “unable to allocate any more money for the foreseeable future”.
While none of the mentioned projects in financial distress are in gaming, the PIF has made significant investments in the industry.
Indeed, its largest recent investment was its private acquisition of publisher EA, as part of a group of investors alongside Affinity Partners, whose CEO is US President Donald Trump’s son-in-law.
Other recent gaming investments include fighting game tournament EVO, DLC for Ubisoft’s Assassin’s Creed Mirage, and Pokémon Go developer Niantic.
As the NY Times reports, Saudi Arabia’s Prince Mohammed is an avid gamer, which is a big motivator behind these investments.
What this reported lack of cash means for these gaming projects remains unclear, but it does suggest a potentially rockier future than the country would have you believe.
