Gaming Industry: Saudi Arabia Drives a Boom in Global Investment
Saudi Arabia is expanding its footprint in the gaming industry, aiming to become a global hub for this thriving sector.
Owing to its youthful population and their increased interest in gaming and Esports, the Kingdom has made significant investment in the sector, driving a rapid growth and expansion. Hence, the gaming sector has become a core component of the Saudi economy.
Rapid Growth
The video games and Esports industry is at the core of economic transformation, as it combines entertainment, tourism, social innovation and cultural exchange. The global gaming market growth is expected to continue in the coming years, paving the way for Saudi Arabia to emerge as a hub for this thriving sector, thanks to the Kingdom’s young, tech-literate population and strategic investments in internet and tech infrastructure.
About 70% of Saudi population, more than 21 million people, identify themselves as gamers. Over 48% of these players are women. In an attempt to harness this potential, the Kingdom has set the goal of creating 40,000 jobs in gaming and Esports by 2030, according to the Savvy Games Group’s 2023 annual report.
In 2023, the Saudi gaming sector revenues reached $1.13bn, and is expected to rise to $1.21bn in 2024; $1.28bn in 2025 and $1.36bn in 2026. This reflects a compound annual growth of 6%.
Due to the current boom, the sector is projected to contribute SAR 50bn ($13bn) to the GDP, and place the Kingdom among the world’s top 3 countries in terms of professional Esports players.
Boosting Gaming Sector
Recognizing the potential of the gaming industry, Saudi Arabia has been working to develop this sector and drive its growth. To this end, it established the Saudi Esports Federation (SEF) in 2017 to be in charge of developing the gaming community in Saudi Arabia.
The SEF has organized multiple world-class tournaments and events that have attracted investments from local and international investors who are seeking to leverage the opportunities in the Saudi market.
Moreover, the Kingdom launched the National Gaming and Esports Strategy in 2022. The Strategy is based on three main objectives: raising the quality of life by improving players’ experience; providing new entertainment opportunities; and achieving an economic impact by contributing SAR 50bn to the GDP, the Saudi Press Agency (SPA) reported.
“We are delivering on the ambitions of the gaming community in Saudi Arabia and around the world, with an exciting new career, and unique entertainment opportunities; aiming to make Saudi Arabia the ultimate global hub for this sector by 2030,” Saudi Crown Prince, Prime Minister and Chairman of the PIF, Mohammed bin Salman, said at the time.
Huge Investment
The Saudi Public Investment Fund (PIF) is leading Saudi Arabia’s push to become a hub for the global gaming industry. In 2022, it launched Savvy Games Group to advance the long-term growth and development of Esports and video games industry.
According to Savvy Games Group’s 2023 annual report, the company has made major strides towards becoming a globally recognized leader in the games and Esports industry. Savvy has strengthened its position as a leader in the gaming industry through its strategic investments and partnerships.
Savvy Games Group has managed to fully acquire 5 international Esports companies, with a value estimated at $8.3bn. It has also acquired stakes at two other major companies. Furthermore, the company runs a $38bn fund dedicated to investments in the gaming sector.
Gaming Future
The CEO of Savvy Gaming Group, Brian Ward, told Asharq Al-Awsat that his company has signed a memorandum of understanding (MoU) with Niantic to support its expansion in the MENA region and bring the popular game Pokémon GO to Saudi Arabia. The game will proceed in 4 Saudi cities: Riyadh, Jeddah, AlUla and Abha.
Furthermore, the company is preparing to launch the Olympic Esports Games in Saudi Arabia. The first-of-its-kind event will take place in the last quarter of 2025. In the light of this, Ward said that the event will be “a massive undertaking in Riyadh, comparable in scale and significance to the FIFA World Cup.”
Saudi Arabia hosted the first edition of the Esports World Cup, from July 4 to August 24, 2024, in Boulevard Riyadh City. The tournament brought together the global Esports community of players, fans, game producers and publishers under the umbrella of the largest event in the history of Esports.
The Esports World Cup marks the largest prize pool in Esports history, with more than $60mn. The Kingdom will host the event annually.
Nurturing Talents
During a press conference in Riyadh, Savvy’s CEO talked about plans to establish an Xsolla Academy, a training program specialized in developing gamers’ skills. The academy has branches in India and Malaysia. It is expected to create 3,600 jobs by 2030.
Additionally, Ward said that Savvy is cooperating with the SEF and the Esports World Cup to develop training programs. He added that the company runs an exclusive internal training programs to cultivate new talent.
According to Ward, Saudi professional Esports women players stand at 20%, with the next closest country at 12%. This makes Saudi Arabia a leader in this area, as women make 5% of professional Esports players globally.
