- The National Development Fund (NDF) and the Social Development Bank (SDB) have committed SAR 450 million ($120 million) to establish two venture funds, signalling a significant investment in the gaming and esports sector within the Kingdom.
- Managed by Merak Capital and IMPACT46, these funds aim to nurture local talent, accelerate industry growth, and position Saudi companies as leaders in the gaming and esports landscape through targeted investments and the establishment of a gaming accelerator.
- By prioritizing the gaming and esports industry, Saudi Arabia seeks to drive economic diversification, stimulate job creation, and propel the Kingdom’s digital agenda forward, aligning with broader national objectives outlined in Saudi Vision 2030.
In a pioneering effort to bolster the gaming and esports sector within the Kingdom of Saudi Arabia, the National Development Fund (NDF) and the Social Development Bank (SDB) have announced the signing of two agreements during the LEAP 2024 technology conference in Riyadh. These agreements aim to establish two venture funds with a combined size of SAR 450 million ($120 million), marking a significant stride towards nurturing the burgeoning gaming and esports industries.
Operational under the Gaming and Esports Financing Programme in collaboration with the Saudi Esports Federation, these funds, managed by Merak Capital and IMPACT46, are geared towards providing development financing for gaming and esports companies through equity investments. The overarching objective is to expedite growth, foster local content creation, and amplify the economic and social contributions of the industry, aligning with the mandates of the National Gaming and Esports Strategy and the Digital Content Program (Ignite).
The first fund, managed by Merak Capital and sized at SAR 300 million ($80 million), will concentrate on establishing a gaming accelerator supported by venture investments. This accelerator aims to catalyze growth and nurture homegrown talent within the gaming industry, with the ultimate goal of positioning Saudi companies as frontrunners in this dynamic sector.
By fostering strategic partnerships and providing financial support to emerging gaming and esports ventures, these initiatives underscore the Kingdom’s commitment to cultivating a vibrant ecosystem conducive to innovation and entrepreneurship. Through targeted investments and collaborative efforts, Saudi Arabia aims to leverage the transformative potential of the gaming and esports industry, driving socio-economic progress and fostering a culture of creativity and technological excellence.
The second fund, managed by IMPACT46 and totalling SAR150 million ($40 million), has been established to bolster investment in Saudi Arabia’s burgeoning gaming and Esports industry. This initiative aims to stimulate private sector participation within the local market while also attracting international firms and studios to establish a stronger foothold in the Kingdom, thereby enriching the overall ecosystem of the sector.
Dr. Stephen Grove, Governor of the National Development Fund (NDF), emphasized the significant growth witnessed by the gaming and Esports industry on a global scale, leading to substantial revenue generation and job opportunities. Recognizing Saudi Arabia’s youthful demographic and other appealing investment attributes, Dr. Grove highlighted NDF’s commitment, alongside its partners, to prioritize innovative financing solutions tailored to support this industry.
The overarching goal is to ensure the sector’s financial sustainability while contributing to the Kingdom’s broader economic diversification and job creation objectives.
Eng. Sultan Al-Humaidi, CEO of SDB, has underscored SDB’s unwavering commitment to bolstering the gaming and e-sports industry, recognizing its significant potential for growth within the Kingdom of Saudi Arabia. With a clear vision to cultivate the industry towards self-sufficiency, SDB aims to position the Kingdom as a global hub in this burgeoning sector. By providing essential support and resources, SDB is dedicated to ensuring the success of this venture, thereby propelling the Saudi digital economy forward. These efforts align closely with the digital transformation goals outlined in Saudi Vision 2030.
This initiative is part of NDF’s broader endeavours to develop and empower promising sectors within Saudi Arabia, aiming to enhance their contribution to the national economy. Through strategic empowerment and financial support, NDF seeks to create an enabling environment that attracts and nurtures local talent, fosters the delivery of promising experiences, and facilitates the execution of top-tier game production and development projects.
By investing in the gaming and e-sports industry, SDB and NDF aim to tap into the immense potential of this sector, leveraging it as a catalyst for economic growth and diversification. With a focus on empowerment and development, these initiatives hold the promise of not only driving innovation and creativity but also of fostering job creation and driving forward the Kingdom’s digital agenda.
Through collaborative efforts and strategic investments, SDB and NDF are poised to position Saudi Arabia at the forefront of the global gaming and e-sports landscape, ushering in a new era of digital prosperity and opportunity for the Kingdom and its people.
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Last Updated on March 7, 2024 by Safiya K
