Saudi Arabia’s National Development Fund (NDF) has created two venture investment funds worth a combined US$120 million targeting the gaming and esports sectors.
Confirmed:
- First fund run by Merak Capital is valued at SR300 million (US$80 million)
- It is focused on creating a gaming accelerator to help Saudi companies become leaders in the esports field
- Second investment fund managed by Impact46 will have SR150 million (US$40 million)
- It will aim to encourage private investment in the local gaming and esports industry
Context:
This marks the latest major financial push made by the Gulf nation into the competitive gaming space. The country’s national gaming and esports strategy is focused on producing economic contributions worth SR50 billion (US$13.3 billion) by 2030.
It will also stage the first Esports World Cup this year, which will give out the largest prize pool in esports history and feature a number of gaming titles.
Comment:
“The gaming and esports industry has seen exponential growth globally, generating substantial revenue and job opportunities,” said Dr Stephen Grove, governor of the NDF.
“With Saudi Arabia’s young demographic and other attractive investment components, NDF and our partners are prioritising innovative financing solutions for this industry. We aim to ensure its financial sustainability and contribute to the Kingdom’s economic diversification and job creation efforts.”
Coming next:
The country’s latest investment comes ahead of the inaugural Esports World Cup, which begins in Riyadh later this summer.
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