The decline and end of oil as the world’s primary source of energy has long been predicted. While many believe it is impossible, the billions invested by Saudi Arabia and other Gulf countries to reduce their dependence on black gold are a sign that it could well happen.
With investments beyond comprehension, Saudi Arabia, the world’s leading oil exporter, and the United Arab Emirates (the best known of the seven are Abu Dhabi and Dubai) have undertaken to channel part of their oil revenues into ‘other activites. Entire cities are being built in the middle of the desert to attract foreign investment and tourists from around the world.
In his Vision 2030 development plan, Saudi Crown Prince Mohammed bin Salman is developing real estate and technological projects worthy of an Egyptian pharaoh, including one called Neom. It’s hard to describe, but you can see a glimpse of it on video.
Alongside these gigantic development projects, the oil kingdoms are putting forward more modest initiatives, which nevertheless demonstrate their desire to diversify their economies: beer and gaming.
Games first. Oil money has helped buy professional sports teams and attract international events like the FIFA World Cup and the Formula 1 Grand Prix.
The entertainment industry is promising and continues to be explored. Saudi Arabia’s $700 billion sovereign wealth fund recently became Nintendo’s largest outside shareholder and has invested in several other video game companies. It now wants to attract gaming and e-sports companies to its territory. The goal is to make games locally and take a share of this global market, which, according to the Boston Consulting Group, is more lucrative than major professional sports.
It was a Canadian by birth, Brian Ward, who had already worked for Electronic Arts and Microsoft, who was given the mandate to create a gaming industry from scratch in Riyadh, starting by attracting industry leaders, a bit like Montreal did with Ubisoft.
With an almost unlimited budget, its goal is to attract 250 companies and 40,000 employees specializing in video games and electronic sports.
Gambling and alcohol generally go well together, but not in Saudi Arabia, where the religion prohibits alcoholic beverages. Changes are in sight on this side too.
In other Gulf countries, where there is already greater openness, alcohol is less and less demonized. The sale of alcoholic beverages is permitted and it is possible to frequent bars. Until recently, it was still forbidden to produce alcohol locally.
This is no longer the case. The craze for craft beers has just reached the Middle East. A microbrewery has just opened in Abu Dhabi, where it is now possible to drink a pint of beer brewed on site that incorporates local ingredients.
The brewer, an American from Louisiana who has been living in Abu Dhabi for 14 years, began by producing his beers in the United States and importing them before being able to brew them on site thanks to a change in regulations.
It remains to be seen whether the plans for futuristic cities and an international video game hub will come to fruition, but as for beer, given the heat and drought that reigns in this region of the world, it should be a success.
