Saudi Arabia's Public Investment Fund has acquired a 5.01 per cent stake in Japan's Nintendo, boosting its portfolio in the lucrative global gaming sector.
The kingdom's $500 billion sovereign wealth fund bought about 6.5 million shares in the creator of Super Mario and maker of video game consoles, according to a regulatory filing with the Tokyo Stock Exchange on Wednesday.
The investment in the world's second-largest gaming company by market value, makes the fund the fifth-largest shareholder in Kyoto-based Nintendo, according to Bloomberg data.
Nintendo's share price closed 3.5 per cent higher at the end of trading on Wednesday. The Japanese company's stock price is up about 9 per cent since the start of the year.
The investment in Nintendo is the PIF's third in a Japanese gaming company, following deals to acquire stakes of more than 5 per cent in online games makers Capcom and Nexon. The Capcom stake is potentially big, as the company is the owner of some of the biggest gaming franchises, including Resident Evil, Street Fighter and Mega Man, plus Marvel crossover titles.
Saudi Arabia, the Arab world's largest economy, has increased its investment in the multi-billion-dollar gaming industry over the past two years. The industry grew during the Covid-19 pandemic, as people pivoted to home entertainment during lockdowns. The sector has about three billion gamers worldwide, according to gaming data provider Newzoo.
In January, the PIF launched Savvy Gaming Group, which aims to become the leading gaming and eSports group locally and internationally. Gaming consumption in Saudi Arabia is projected to reach $6.8bn by 2030, according to a recent report from Boston Consulting Group.
The fund also took a stake in US company Activision Blizzard, the Call of Duty publisher that Microsoft announced it would buy for $68.7bn in January. Its stake in Activision at the end of the first quarter of this year was worth $3bn, according to the latest regulatory filing.
The PIF also has a stake of about $1.8bn in US video game company Electronic Arts. The fund also has a $1.7bn investment in New York-based Take-Two Interactive Software, a video game holding company that offers its products under the Rockstar Games, 2K, Private Division, Social Point, and Playdots labels.
In February, Saudi-owned MBC Group, the biggest broadcaster in the Middle East and North Africa, formed a joint venture with Neom, the $500bn high-tech mega-city being built in the kingdom, to set up the first AAA games development studio in the Arab world.
AAA is a classification within the gaming industry that labels games produced and distributed by mid-sized or big publishers that usually have higher budgets.
Saudi studios are also seeking to get a larger share of the market by attracting investments. In April, Riyadh-based Spoilz Games raised 2.6 million riyals ($693,000) in a pre-seed investment round that it will use to expand its portfolio.
The gaming industry is forecast to have a $339.95bn market value by 2027, compared to $198.4bn in 2021 and grow at a 9 per cent compound annual rate, according to Mordor Intelligence.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Zayed Sustainability Prize
MATCH INFO
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COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Killing of Qassem Suleimani
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
ARGYLLE
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The years Ramadan fell in May
Try out the test yourself
Q1 Suppose you had $100 in a savings account and the interest rate was 2 per cent per year. After five years, how much do you think you would have in the account if you left the money to grow?
a) More than $102
b) Exactly $102
c) Less than $102
d) Do not know
e) Refuse to answer
Q2 Imagine that the interest rate on your savings account was 1 per cent per year and inflation was 2 per cent per year. After one year, how much would you be able to buy with the money in this account?
a) More than today
b) Exactly the same as today
c) Less than today
d) Do not know
e) Refuse to answer
Q4 Do you think that the following statement is true or false? “Buying a single company stock usually provides a safer return than a stock mutual fund.”
a) True
b) False
d) Do not know
e) Refuse to answer
The “Big Three” financial literacy questions were created by Professors Annamaria Lusardi of the George Washington School of Business and Olivia Mitchell, of the Wharton School of the University of Pennsylvania.
Answers: Q1 More than $102 (compound interest). Q2 Less than today (inflation). Q3 False (diversification).
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AI traffic lights to ease congestion at seven points to Sheikh Zayed bin Sultan Street
The seven points are:
Shakhbout bin Sultan Street
Dhafeer Street
Hadbat Al Ghubainah Street (outbound)
Salama bint Butti Street
Al Dhafra Street
Rabdan Street
Umm Yifina Street exit (inbound)
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