GAMING

GAME STRATEGY: SAUDI UNLOCKS THE INDUSTRY’S ECONOMIC POTENTIAL

Saudi Arabia is positioning itself as a major player in the USD 300 billion global video games and esports market. But this is not just about entertainment. The sector is driving new tourism trends, fostering social innovation, and nurturing the future of cultural and skills development.

Behind the industry’s surge is a clear strategy: visionary leadership, a national video games and esports plan, and the powerful backing of the Public Investment Fund (PIF).

Saudi Arabia’s focus on the gaming industry is part of a broader push to diversify its economy beyond oil, which still makes up about 42% of its GDP. With the global video game market expected to grow by 9% to 12% in the coming years, the country sees gaming as a key player in its future economic mix.

For example, the 2018 League of Legends Finals drew over 100 million viewers, surpassing that year’s Super Bowl audience.

But gaming’s potential goes beyond economic benefits. The industry also fosters skills that are crucial for the future of work, such as creativity, problem-solving, digital literacy, and collaboration – all have been identified by the Organisation for Economic Co-operation and Development (OECD) as essential by 2030. 

Games also extend a country’s cultural reach. Japan highlighted this during its Olympic bid in 2016 when its then prime minister Shinzo Abe dressed up as Super Mario. More recently, The Super Mario Bros. Movie became a box oce success. Saudi Arabia is keen to tap into this power of gaming to elevate its global cultural footprint. 

As games evolve from one-off purchases to “forever games” that oer years of ongoing engagement, Saudi Arabia is embracing this shift. Games like Candy Crush are not just pastimes but platforms for commerce, digital interaction, and technological advancement. The country is aware that video games are crucial in pushing innovations in artificial intelligence (AI), virtual economies, and content creation. 

NATIONAL ESPORTS STRATEGY

Saudi Arabia’s rise in the gaming world is no accident. It is the result of a carefully aligned strategy backed by ecosystem enablers like the Saudi Esports Federation and the National Gaming and Esports Strategy. Crown Prince Mohammed bin Salman sees gaming as a way to diversify the economy, as well as innovate, and expand the country’s entertainment and esports offerings. By 2030, the gaming sector is expected to create 39,000 jobs and contribute USD 13.3 billion to GDP.

The country is also nurturing talent from the ground up. In 2022, Saudi Arabia launched the Ignite initiative, a USD 1.1 billion project to boost digital content and transform the country into a leader in digital media and gaming. This initiative offers investment incentives, gaming schools, start-up accelerators, and more.

Saudi’s young population is also a key advantage. With 50% of its citizens under 25 and over 70% identifying as gamers, the country is fertile ground for esports growth. Saudi players have already made their mark on the global stage in titles like FIFA and League of Legends. The recent announcement of the Esports World Cup, with the largest prize pool in esports history, highlights Saudi Arabia’s serious commitment to this space.

FDI SURGES

PIF, Saudi’s sovereign wealth fund, has been pivotal in the kingdom’s gaming ambitions. In 2022, it launched Savvy Games Group, which quickly became a force in the industry. Savvy acquired the largest esports operator, ESL, and merged it with FACEIT to form the global esports leader EFG. It also acquired Vindex, a data solutions provider, and bought a stake in VSPO, an esports tournament operator.

In 2023, Savvy took a bold step by acquiring mobile gaming giant Scopely for USD 4.9 billion. It has also invested in establishing game studios like Steer Studios, which will focus on mobile games before expanding into larger projects.

Beyond acquisitions, Savvy is fostering a local gaming community with cutting-edge gaming centres like its flagship 2,000-square-metre facility under its subsidiary VOV.

Saudi Arabia’s journey in the global gaming industry mirrors the complex quests found in the games themselves. The country is navigating this landscape with a combination of strategy, investment, and innovation. Riyadh, once dominated by oil, now reflects on digital opportunity’s economic impact. Saudi Arabia is not just playing the game; it’s working to redefine it, turning oil wealth into silicon-fuelled innovation. As it continues its quest, the kingdom is poised to become a global gaming powerhouse, proving that its ambitions go far beyond the traditional realms of energy.