Saudi Arabia is more than just participating in the global gaming arena. It’s making a bold statement. 

As the 19th largest gaming market in the world, with 89% of its population engaged in gaming—including 42% women and 45% aged 21-35—the kingdom is redefining what it means to be a player in this dominating entertainment frontier.

Aligned with Vision 2030, Saudi Arabia aims to develop 30 competitive games and establish itself as a global gaming hub by 2030. The kingdom is backing this ambition with a bold $38 billion investment from the Public Investment Fund (PIF)’s Savvy Games Group, which is focused on acquiring publishers and nurturing local talent.

Several factors will shape the evolution of Saudi Arabia’s video gaming and esports sector, aligning closely with the nation’s demography and the booming esports scene, believes Mishary Alibraheem, Head of Entertainment, Tourism, Education, and Sports Investments, MENA at PIF. 

He believes Saudi Arabia is poised to lead the global gaming and esports industry by leveraging its youthful population, infrastructure, and strategic investments.

THE INFLUENCE OF GAMING 

“Esports, in particular, is poised for dynamic expansion, with an untapped market at its fingertips,” says Alibraheem. 

The gaming and esports industry is among the fastest-growing globally, with video game revenue expected to increase from $262 billion in 2023 to $312 billion by 2027. The sector’s growth mirrors the expanding range of devices and platforms—such as consoles, PCs, mobile apps, and virtual reality—along with rising popularity, audience, and profitability.

Despite esports already attracting around 500 million enthusiasts—approximately 15% of the global gaming population of 3 billion—there is still significant growth potential as more gamers focus on esports.

Saudi Arabia’s young population has been a major driver of innovation in this space. HRH, the Crown Prince, captured this dynamic during the launch of the National Gaming and Esports Strategy, stating, “The energy and creativity of Saudi youth and electronic game enthusiasts are the engine of the strategy.”

With about 60% of the Saudi population under 30, the growth potential for the gaming sector is substantial. The kingdom boasts 23.5 million gamers, representing around 67% of the population. This appeal highlights the sector’s reach beyond just the youth.

Alibraheem emphasizes that the right infrastructure is crucial to fostering and amplifying this creative potential.

Saudi Arabia is uniquely positioned with a convergence of factors that support the gaming sector. Its digital infrastructure is among the most advanced globally, with the kingdom recently climbing 20 places in the overall index and rising 86 places in the digital ecosystem rankings, making it a top performer among G20 countries.

Moreover, the gaming and esports sector has the potential to stimulate growth in related areas such as tourism, entertainment, events, media, and technology—key strategic sectors for PIF.

“We have leadership and drive at all levels of Saudi Arabia’s transformative gaming industry,” says Alibraheem. This is exemplified by the Esports World Cup, which will be held annually in Riyadh starting in 2024. The event aligns with Vision 2030 and highlights Saudi Arabia’s growing prominence in the global gaming industry.

THE (PIF) TRANSFORMATION

According to Alibraheem, PIF is a pivotal player in making Saudi Arabia a video game hub. Since its establishment in 2022, Savvy Games Group, backed by PIF, has been instrumental in this effort.

Savvy Games Group is focused on developing a strong gaming ecosystem in Saudi Arabia, nurturing local talent, and attracting global expertise. Key milestones include the acquisition of ESL, the largest esports operator, and its merger with FACEIT to form EFG, a leading global esports entity. Savvy also acquired Vindex, a data and technology provider, and a minority stake in VSPO, an esports tournament operator. These strategic moves strengthen Savvy’s position in the esports industry and enhance its ability to host major competitions.

Further advancing its goals, Savvy acquired Scopely, strengthening Saudi Arabia’s gaming ecosystem and boosting its global presence.

Savvy also launched Steer Studios in Saudi Arabia, starting with mobile games and planning to expand. The new 2,000-square-meter VOV venue highlights Savvy’s dedication to building a dynamic gaming community and leading globally.

NEOM, another PIF mega-project, has made strides towards becoming a media and gaming hub. In February 2022, NEOM partnered with MBC GROUP to establish one of the region’s first AAA game development studios. This initiative seeks to attract global talent, generate career opportunities in distribution, marketing, and support services, and strengthen local industries.

Through these strategic investments, PIF drives job creation and industry growth, strengthening Saudi Arabia’s position as a major player in the global gaming sector.

ACQUISITION AND COLLABORATION 

Saudi Arabia’s strategic acquisitions and collaborations also fuel long-term growth, attracting top local and international talent to its game developers and studios. 

A prime example is the Esports World Cup, organized by EFG, Savvy’s esports arm. Held annually in Riyadh, this global flagship event features 22 game championships over eight weeks with a $60 million prize pool, offering gamers a premier platform to showcase their skills and enhance Saudi Arabia’s international profile.

Saudi has gone beyond exploration to implementation. 

Saudi Arabia’s industry initiatives have drawn major players from the U.S., Europe, and Asia to the Esports World Cup. Additionally, the International Olympic Committee has partnered with the Saudi National Olympic Committee to host the inaugural Olympic Esports Games in 2025.

Looking ahead, several companies are poised to enter the region. Meanwhile, Qiddiya is creating a gaming and esports district featuring multiple arenas, team facilities, boot camps, and regional headquarters for top video game companies.

By 2030, Saudi Arabia’s National Gaming and Esports Strategy, driven largely by PIF projects, aims to create 39,000 jobs and add $13.3 billion to the GDP, according to Alibraheem. 

The strategy focuses on expanding the gaming industry’s scope, boosting entertainment and esports growth, and scaling competitive offerings across the kingdom.

The Middle East gaming market was valued at approximately $5.71 billion in 2023, and it is projected to grow at an average annual rate of 13.88% from 2022 to 2027. By 2026, revenue from games in Saudi Arabia, UAE, and Egypt is expected to reach $2.8 billion, up from $1.8 billion in 2022.