Saudi Arabia catches global attention with its esports and gaming sector
Gaming has been a popular pastime worldwide, but in Saudi Arabia, it is becoming a culture
With Saudi Arabia’s youthful population that is increasingly tech-savvy, the country has been emerging as a hub for gaming and esports, capturing global attention with its plans and investments.
Saudi Arabia is witnessing a gaming renaissance, fueled predominantly by Generation Z (Gen Z).
This demographic, characterised by its affinity for digital interactions and entertainment, is reshaping the landscape of gaming and esports, offering a plethora of business opportunities and investment potential.
A cultural shift towards gaming
Gaming has long been a popular pastime worldwide, but in Saudi Arabia, it is becoming a cultural phenomenon. The country's Vision 2030 initiative, aimed at diversifying the economy and reducing reliance on oil, has placed a strong emphasis on entertainment and digital innovation. As a result, gaming is not just a hobby but a key component of the country's strategic goals.
Gen Z, which makes up a significant portion of the Saudi population, is at the forefront of this shift. With access to high-speed internet and smartphones, this generation is engaging with gaming in ways that previous generations could only dream of.
According to a report by Saudi English language monthly Leaders, over 70 per cent of Saudi youth play video games, making it one of the most popular forms of entertainment in the country.
“The Saudi gaming and esports industry is experiencing rapid growth, driven largely by Gen Z’s passion for digital entertainment and competitive gaming. This demographic’s high level of engagement with games, social media, and streaming platforms is transforming gaming into one of the most dynamic sectors in the country.
“According to the Saudi government’s Vision 2030 initiative, which promotes diversification away from oil, gaming and esports are positioned as key areas for investment and development,” said Saad Khan, founder and CEO of event management company Gamers Hub Media Events.
The rise of esports
The growth of esports in Saudi Arabia is particularly noteworthy. Major tournaments, local leagues, and international competitions are drawing thousands of spectators and participants alike. The Saudi Arabian government has recognised the potential of esports as a driver of economic growth and has invested heavily in the infrastructure necessary to support this burgeoning industry.
In 2022, Saudi Arabia hosted the first ever Gamers8 festival, a landmark event featuring a $45 million (Dh165 million) prize pool, making it one of the richest esports tournaments globally.
Such events not only showcase local talent but also attract international competitors and audiences, solidifying Saudi Arabia’s position on the global esports stage.
Turki Al Fawzan, CEO at Saudi Esports Federation shared details about the country’s demographic and how its influencing the gaming and esports industry in Saudi Arabia. The Saudi Esports Federation is the regulating body in charge of nurturing elite gaming athletes and developing the gaming community and industry in Saudi Arabia
Young Saudis are passionate, modern, and tech-savvy, with unique needs that require a tailored approach. With nearly 70 per cent of the population under 30, Gen Z is driving the future of gaming through their creativity, passion, and digital fluency.
“This generational shift presents significant business opportunities, attracting investments across various sectors, from game development and infrastructure to partnerships with global esports organisations,” said Al Fawzan.
“A major milestone in this effort is the Esports World Cup (EWC), held annually in Riyadh. With a $60 million (Dh220 million) prize pool and 22 competitions featuring popular titles like Call of Duty, League of Legends, Apex Legends, and Tekken 8, the event draws over 1,500 participants, solidifying Saudi Arabia’s global esports prominence,” said Mohsen Waqar, CEO of game development platform Senet.
Investment opportunities
With the gaming and esports industry on the rise, numerous investment opportunities are emerging. The Saudi government has established the Saudi Arabian Games and Esports Federation (SAGAF) to oversee and promote gaming initiatives. This body is actively seeking partnerships with private sector investors and global gaming companies.
1. Game development and publishing: There is a growing demand for local game development studios that can create culturally relevant content. Investing in game development not only taps into a lucrative market but also contributes to building a national identity within the gaming sphere. Several startups have already emerged, focusing on both mobile and console games, often reflecting Saudi culture and values.
“Saudi Arabia is fostering local talent to develop homegrown games that resonate with the region's cultural nuances, creating opportunities for investors to support this burgeoning market.” Added Khan.
2. Esports arenas and infrastructure: As esports continues to grow, the need for dedicated venues becomes critical. Investing in esports arenas can provide a platform for hosting local and international tournaments. Furthermore, these venues can serve as community hubs for gamers, enhancing the overall esports experience.
“With increased tournament demand, there’s a rising need for venues, leagues, and professional team management, making esports infrastructure a lucrative area,” added Khan.
3. Streaming and content creation: The rise of platforms like Twitch and YouTube Gaming has created a new wave of content creators. With Gen Z gravitating toward online streaming and gaming content, businesses can invest in talent management, streaming infrastructure, and production facilities to support this burgeoning ecosystem.
“As Gen Z players spend significant time on streaming platforms, there's a demand for content creators and platforms tailored to gaming,” added Khan.
4. Merchandising and branding: As esports teams and personalities gain popularity, there is a significant opportunity in merchandise sales, including apparel, accessories, and gaming gear. Collaborating with local influencers and gamers can create unique branding opportunities that resonate with the target audience.
5. Education and training: With the rapid growth of the industry, there is a need for skilled professionals in areas like game design, programming, and esports management. Establishing educational institutions or training programmes focused on gaming can fill this gap and foster local talent.
“At the Saudi Esports Federation, we are investing in the next generation of talent through initiatives such as the schools league, which, and with registration still open, has already seen over 28,000 students sign up for this year’s competition.
“We are committed to growing this ecosystem and positioning Saudi Arabia as a leader in the gaming and esports industry, aligning with Vision 2030’s goals of economic diversification and technological innovation in line with the National Gaming and Esports strategy,” added Al Fawzan.
“For investors, the opportunities are vast. The EWC aims to contribute more than $13.3 billion (Dh48 billion) to Saudi Arabia's GDP and create 39,000 new jobs by 2030.
“Events like the Gamers8 festival and the EWC are building a robust ecosystem for innovations in gaming technologies such as AI, VR/AR, and blockchain, attracting a rapidly growing audience eager for these advancements.
“The sector’s continued expansion, driven by Gen Z’s engagement, presents a promising landscape for both local and international investments that will shape the future of gaming in the region,” added Waqar.
Thomas Zaepffel, CEO and co-founder of gaming platform Coliseum shared insights on the efforts and contributions of the Saudi Public Investment Fund (PIF) in the gaming and esports sector in Saudi Arabia.
“Government backing, particularly through the Public Investment Fund (PIF), has been a key driver of this growth, supporting these major events and investing heavily in the country’s gaming infrastructure.
“With Saudi Arabia’s gaming market projected to reach $6.8 billion (Dh24.9 billion) by 2030, Western esports teams and brands increasingly view the region as a hub for expansion, attracted by the thriving ecosystem and young, digitally savvy population,” said Zaepffel.
Challenges
While the prospects are promising, the gaming and esports industry in Saudi Arabia faces challenges. Cultural perceptions of gaming as merely entertainment may hinder some investment initiatives. Additionally, regulatory frameworks need to evolve to support the industry while ensuring the safety and well-being of players.
Moreover, the competition is fierce, with neighbouring countries also ramping up their gaming initiatives. To maintain its competitive edge, Saudi Arabia must continue to innovate and adapt to the rapidly changing global landscape.
The future of gaming in Saudi Arabia
Looking ahead, the future of gaming and esports in Saudi Arabia appears bright. With Gen Z leading the charge, the industry is poised for unprecedented growth. The government's commitment to fostering a vibrant gaming culture through investments, infrastructure development, and global partnerships will further accelerate this trend.
As Saudi Arabia continues to carve its niche in the gaming world, businesses and investors must remain agile, ready to seize the opportunities that arise. The country is not just a player in the gaming arena; it is on the brink of becoming a leader, influencing trends and shaping the future of gaming on a global scale.
“As a transformative force in gaming and esports, Saudi Arabia is committed to reshaping the global industry’s landscape through significant investment, key partnerships, and the passion that the nation’s people bring to their favourite pursuit.
“Saudi Arabia’s vision is to become the world’s premier destination for gaming and esports by 2030. To achieve this, we are actively forging relationships with international esports organizations, gaming companies, and relevant influencers, ensuring the transfer of knowledge, expertise, and a seamless global integration.
“Saudi Arabia’s investments in large-scale projects and its role as a host of world-class events reflects our commitment to fulfilling the joy that our youth have for gaming and esports,” said Franck Guignery, senior vice president and managing director Middle East and Africa at esports company ESL FACEIT Group.
“For investors, there is immense potential in these areas, particularly with the government’s support through initiatives like the establishment of Savvy Games Group, a subsidiary of the Public Investment Fund, which plans to invest billions into the gaming ecosystem.
“By supporting homegrown talent and infrastructure, businesses can align with Saudi Arabia’s long-term goals of becoming a global hub for gaming and esports,” added Khan.
The intersection of technology, entertainment, and culture is creating a perfect storm for the growth of gaming and esports in Saudi Arabia. With Gen Z at the helm, this vibrant community is redefining entertainment and opening new doors for business and investment. As Saudi Arabia embraces this digital revolution, the world will be watching, and the opportunities are vast. The time to invest in Saudi Arabia’s gaming and esports industry is now, and the future looks more exciting than ever.