Bruce Dias 
The electric vehicle trend threatens to drain Saudi Arabia’s oil revenue, but the country has a backup plan to supplement its lucrative income. Serious investments in eSports and gaming are crucial segments of the new strategy for the economic development of the Kingdom. And to get at the forefront of the global gaming sector, this Middle Eastern country relies on its sovereign wealth fund. The push started with an impressive $488 million investment in 2023, aiming to position the country as an industry leader by 2030.
The National Gaming and Esports Strategy envisions the establishment of 250 game companies on the peninsula, which should generate 39,000 jobs over the next six years. The kingdom is determined to become one of the global leaders in the gaming and eSports sectors, and according to Saudi officials, the initial investment of nearly half a billion dollars is only the start of the ambitious plans.
The leading 10 game development companies in Saudi Arabia are already making headway in the industry. And the country’s effort to become a global center will be boosted by hosting the inaugural eSports World Cup in Riyadh in the summer of 2024.
The Next Global Gaming Powerhouse
Saudi Arabia is experiencing a significant cultural shift, reflected in the embrace of Western trends such as gaming and eSports. The country’s young population grew up in the era of console games and social media, striving to seek out opportunities enjoyed by fellow GenZ-ers across the world. Saudis no longer want the austere lifestyle of previous generations, and that’s reflected in the changing attitude toward gender roles.
The future belongs to the youth, and 63% of Saudi Arabia’s population is younger than 30. Most surveys revealed that 29% of Saudis have a genuine interest in eSports, and 67% are gamers, with 47% of the female population actively participating in gaming, significantly higher than global economies and tech centers such as Japan, the United States, and EU nations. The Kingdom’s youth views gaming not only as a hobby but as a prospective career.
Najd Fahd, a Saudi girl, was crowned the FIFA e-Football World Champion in 2020. Some estimates claim that 70% of Saudis play games weekly, and 50% of that portion are believed to be women. Fahd is only one of five world eSport champions hailing from Saudi Arabia.
Emphasis on Education
Universities and government programs are instituting new gaming courses and curricula. Iin August 2023, the first batch of 300 graduates from the Saudi Esports Academy received their diplomas. The ceremony also honored a smaller group of ten master’s graduates who completed a nine-month course in eSports business management.
Additional courses are available on topics such as coaching, broadcast manager for esports events, esports team management, project management in esports, referee and esports competition management. Investment in educational programs aims to set the foundation for students to acquire the necessary skills that will translate to job opportunities in the local gaming and esports industry after gaining formal qualifications.
The various educational projects and business incentives are already bearing fruit, with the number of game startups rising from 13 in 2021 to 24 companies one year later, making gaming the fastest-growing domestic market. The rapidly growing infrastructure stimulates growing interest among the population. Smartphone adoption is expected to rise to 97% in 2024, and high-speed internet is available across the country.
Engine of the Kingdom’s Economic Future Growth
The Saudi investments in the gaming and eSports sectors are calculated moves, and a closer look at numbers from global trends is proof of why the government is pivoting towards these sectors. The valuation of the global eSports market stands at $1.9 billion in 2024. But the encouraging news is that projections say the market will make a huge jump, with an expected worth of $7 billion by the end of this decade.
On the other hand, the global video gaming industry was valued at $369 billion in 2023, and the Saudi government expects gaming to contribute $13.3 billion to the local economy over the next few years. However, the Kingdom is also a big consumer of gaming products, with a report from Boston Consulting Group projecting local gaming consumption to rise to around 200 million people in 2025 including North Africa, with an incredible CAGR of 24.5%.
The establishment of the Savvy Games Group (SGG) is a significant step towards creating sophisticated high-tech infrastructure, including numerous eSports venues for gamers to compete and sharpen their skills. These venues will continue to feed the gaming enthusiasm prevalent in the Kingdom of Saudi Arabia.
