Saudi Arabia's sovereign wealth fund is said to be curtailing new investments amid dwindling cash reserves

The financial standing of Saudi Arabia's Public Investment Fund (PIF) is reportedly constrained following years of heavy investments in gaming and esports industries.

According to The New York Times, the fund currently lacks substantial liquidity for new endeavors due to several investments facing "financial distress".

Notable ventures include Neom, a futuristic city region planned for the Tabuk Province, which is experiencing construction delays blamed on inadequate planning and vision disputes. Other struggling projects encompass a coffee firm, a cruising enterprise, and an electric vehicle company. However, these do not pertain to the video gaming industry, where PIF has actively invested.

The PIF boasts approximately $1 trillion in asset value, though a large portion consists of illiquid assets without market valuations, leading the NYT to note PIF's limitation in committing funds in the immediate term.

Nonetheless, PIF spokesperson Marwan Bakrali assured that $60 billion in cash and similar holdings remain available.

Furthermore, PIF partakes in a prominent acquisition involving the American publisher Electronic Arts, alongside Silver Lake and Affinity Partners. This $55 billion deal, pending completion, is anticipated by EA's CEO Andrew Wilson to finalize in the initial quarter of fiscal 2027.

Besides targeting EA, the PIF has established a substantial presence in the gaming sector. It owns Savvy Games Group, the parent company of Scopely, the creator of Monopoly Go, and Niantic, known for Pokémon Go.

In addition, PIF's portfolio includes stakes in several gaming companies such as Capcom, Nexon, Embracer Group, Nintendo, and Take-Two, alongside significant esports investments. Although initially chosen to host the 2027 Olympic Esports Games, Saudi Arabia will not proceed as planned after the Esports World Cup and the IOC ended their agreement recently.