Saudi Arabia is making a significant investment in the gaming and esports industries, with $37 billion from the Saudi Arabia Public Investment Fund allocated for games. Savvy Games Group, a Riyadh-based company led by CEO Brian Ward, used a portion of this funding to acquire Scopely for $4.9 billion. This investment paid off when Scopely’s mobile game Monopoly Go generated over $2 billion in revenue within its first 10 months. Saudi Arabia’s strategy of moving quickly in the gaming industry has proven successful and is helping the country and Savvy Games Group establish a financial empire in games. However, in order to sustain this growth and offset the decline of the oil economy, Saudi Arabia needs to create more jobs within its own borders.
One challenge that Saudi Arabia faces is its conservative values, which historically made it a difficult destination for migrants. However, the country has a young population, and many of its residents have grown up playing games. This is a key requirement for developing a game industry, as authentic gamers are the ones who can create the biggest gaming hits. While it may be challenging to change cultural norms that don’t align with Western values, Saudi Arabia has the potential to grow its own game talent.
Savvy Games Group has approximately 3,500 employees and holds about 40% of the global esports industry. The company has made significant investments in esports growth, including the acquisition of ESL FaceIt Group and the launch of the Esports World Cup in Boulevard City near Riyadh. The Esports World Cup attracted over 500 million viewers and recorded over 250 million hours of content consumption, making it the most-watched tournament of 2024. Team Falcons emerged as the first Club Champion, winning $7 million in prize money from a pool of over $60 million.
Saudi Arabia’s investment in gaming and esports is part of its broader vision to diversify its economy and reduce its reliance on oil. The country’s Vision 2030 plan aims to create 39,000 sector jobs, and the gaming industry has the potential to contribute significantly to this goal. However, talent development and skill building will take time, and it may not be possible to achieve all the objectives within the proposed timeline. Nevertheless, the urgency to create jobs stems from the fact that oil reserves could run out in 27 years, necessitating the development of alternative industries.
Saudi Arabia’s efforts to accelerate the growth of the gaming industry are also reflected in its partnerships and collaborations. Savvy Games Group has signed Memorandums of Understanding (MoUs) with Niantic and Xsolla to support the expansion of these companies into the Middle East and create more economic opportunities in the region. Additionally, the announcement of the Esports Olympics to be held in Riyadh in 2025 further demonstrates Saudi Arabia’s commitment to building a belief in the culture of gaming around the world.
Navigating different markets and cultures is crucial for the success of a global gaming and esports company. Savvy Games Group recognizes the unique characteristics of each market and is actively seeking opportunities to expand its portfolio across the globe. The company aims to partner with teams, studios, and companies in various regions, providing long-term capital and leveraging their expertise in serving their respective markets.
Overall, Saudi Arabia’s investment in gaming and esports is driven by the need to diversify its economy and create jobs for its growing population. The country has the potential to become a global games and esports hub, given its young population and high percentage of gamers. By moving quickly and investing in talent development, Saudi Arabia can position itself as a leader in the gaming industry and secure its economic future beyond the oil sector.
