Overview

The Saudi Arabian government is willing to diversify its economy away from oil. One of the areas where they are making a substantial investment is the gaming industry. Through its Public Investment Fund, the Saudi government has invested $38 billion in the global gaming market to become a significant player in this $184 billion industry.

Initially, the focus was on the esports industry, which has been struggling lately. However, the fund’s subsidiary, Savvy Gaming Group, is now looking to develop, publish, and acquire top-tier games and support a thriving gaming industry in the capital city of Riyadh.

Gaming Market in Saudi Arabia

Saudi Arabia has a large population of gamers, with 21 million gamers making up about 58% of the total population. In Saudi Arabia alone, 68% of its citizens consider themselves gamers due to the large youth population and high smartphone and Internet usage rates. The Middle East and North Africa’s (MENA) gaming market is expected to grow 56% to $2.79 billion by 2026.

The country also hosts the world’s largest esports and gaming event, Gamers8, which is set to take place this summer. With 377 million esports gamers in the Middle East, the region is expected to become the fastest-growing gaming region in the world.

The National Gaming and Esports Strategy

Saudi Arabia has developed a comprehensive National Gaming and Esports Strategy to become a global hub for gaming and esports by 2030. The strategy involves launching business incubators, new educational academies, and regulations intended to accelerate growth in the industry.

The National Gaming and Esports Strategy aims to add SAR50 billion ($13.3 billion) to Saudi Arabia’s gross domestic product, create more than 30 competitive games in the Kingdom’s studios, and become one of the top three countries with the highest number of professional esports players.

The National Gaming and Esports Strategy revolves around three main pillars:

• Improving player experience includes developing game-related technologies, improving internet infrastructure, and creating a supportive regulatory environment.
• Creating new opportunities involves establishing incubation programs to support new game startups, providing funding for existing game companies, and promoting esports and gaming events.
• Adding SAR50 billion to Saudi Arabia’s gross domestic product involves attracting foreign investments, creating jobs in the gaming and esports industries, and developing talent through education and training programs.

The Significance of the Saudi Gaming Industry

The gaming and esports sector in the Kingdom is considered the fastest-growing media sector and is expected to reach $200 billion by 2023. In 2021, expenditure on gaming and esports in Saudi Arabia reached $1 billion, 3.75 billion riyals, underscoring the magnitude of this industry in the country. The number of games startups in Saudi Arabia almost doubled to 24 in 2022 from 13 in the previous year, driven by incubation programs.

Savvy Gaming Group is a subsidiary of the Public Investment Fund of Saudi Arabia, dedicated to developing and promoting the gaming industry in the Kingdom. The group is working on establishing world-class studios and acquiring top-tier games to offer an immersive experience to gamers.

The strategy outlines 86 initiatives across eight focus areas to achieve this goal, including technology and hardware development, game production, esports, additional services, infrastructure, regulations, education, and talent acquisition. By 2030, the Saudi government aims to establish 250 game companies in the Kingdom, which will create 39,000 jobs and increase the sector’s gross domestic product contribution to 50 billion riyals.

The government is also working on regulations to promote the gaming industry and create a conducive business environment. The regulations include licensing for game developers, publishers, and esports teams and legal frameworks for intellectual property protection, online payments, and digital transactions.

Gamers8: A Landmark Event for Saudi Arabia

The gaming industry in Saudi Arabia is set to receive a significant boost with the upcoming Gamers8 event, which is set to take place in July 2023. Gamers8, the world’s largest esports and gaming event, will be hosted in the Kingdom.

The event will feature top esports players and gaming celebrities worldwide and is expected to attract a massive audience. This event is a testament to Saudi Arabia’s growing stature in the global gaming industry and its potential to become a hub for esports and gaming.

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