Riyadh is currently buzzing with excitement as it hosts the first inaugural e-sports World Cup with prizes worth a total of $62.5 million – positioning Saudi Arabia at the forefront of the global e-sports market while setting the stage for the first-ever Olympic Esports Games in 2025.
This focus on e-sports aligns with Saudi Arabia’s Vision 2030’s diversification objectives. It centers around powering the growth of its non-oil sectors, including sports, and accelerating the shift towards a tech-driven economy.
Hosting these global events will eventually create new E-sports Business Opportunities in Saudi Arabia attracting foreign companies to the Kingdom. They will be able to take full advantage of the business opportunities in the Saudi e-sports space and the adjacent industries.
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Key Highlights
- Approximately 67% of Saudi citizens are involved in e-sports and gaming activities to some extent.
- Revenue from the Saudi e-sports market is projected to reach $10.6 million in 2024.
- The country’s esports initiatives are expected to contribute over $13.3 billion to the GDP and create 39,000 new jobs by 2030.
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E-sports World Cup and Olympics: Lasting Impact of E-sports on the Economy is in Full Display
The Saudi e-sports industry is a catalyst for powerful economic growth and an indicator of the country’s leading position in gaming infrastructure development and its robust IT sector.
E-sports Business Opportunities in Saudi Arabia Across Multiple Sectors
The momentum gathered in the Saudi e-sports industry, in turn, helps develop new technologies and innovative solutions. This supports other industries, creates an enabling environment for entrepreneurship, and drives the implementation of Vision 2030’s grand objectives.
Besides IT, the industry’s impact can be felt throughout various sectors, including tourism. With an estimated global audience exceeding 500 million, Saudi e-sports is well-equipped to draw the attention of global sports enthusiasts and casual spectators. This also attracts industry players, making the country a prime destination to start or grow a business in its thriving market.
Both the E-sports World Cup and the upcoming Olympic Esports Games will initiate a ripple effect throughout the tourism sector’s value chain. This provides a boost to hotel bookings, dining facilities, retail, transport, entertainment venues, and more.
This accordingly contributes to the Kingdom’s objective of revitalizing its entertainment sector projected to reach $1.17 billion by 2030 and welcome 150 million visitors annually by the same year.
The far-reaching impact of hosting these two prominent tournaments extends to construction and infrastructure as well. By hosting global events in the e-sports arena, the demand for large-scale construction projects increases, which encourages private sector companies to expand to the Kingdom and participate in the execution of these projects.
Saudi E-sports Economy Grows at a Rapid Clip
Revenues in the Saudi gaming sector are projected to hit $10.6 million in 2024, registering a growth rate (CAGR) of 8.90% over the next eight years, between 2024 and 2032.
Much of this growth is largely driven by supportive government policies and investments, a rise in business expansion activity in Saudi Arabia, and the uptick in the popularity of e-sports among Saudis.
Roughly two-thirds (67%) of the Saudi population consider themselves gamers. This signifies the rise in demand for consumption as the gaming culture continues to unabashedly take hold.
This was evidenced by Saudi Arabia’s recent ranking as the second globally in average daily time spent playing video games.
Moreover, 81% of surveyed gamers and game developers in Saudi Arabia are highly optimistic about the growth of the gaming industry in the upcoming year, as per the AstroLabs 2023 Saudi Gaming Market Outlook Report.
Such factors collectively underpin Vision 2030’s objectives to create direct and indirect 39,000 jobs by 2030 in the gaming sphere and increase the sector’s GDP contribution to $13.3 billion.
Adding to this, Saudi Arabia is increasingly upping its stakes in the global gaming development industry. It looks to have 250 companies and developers operating locally by 2030.
To support this goal, we partnered with the Saudi Ministry of Communications and Information Technology on its gaming-focused program, “Game Changers.” As many as 10 gaming studios opened as a result of this program, which took place back in 2021. This contributed to the increase in the number of gaming studios in the country at that time by 100%.
Our gaming and e-sports network consists of 100+ global, regional, and local partners who are at the forefront of the gaming community across the Gulf. Notably in the Kingdom, the industry is rising to global prominence.
Saudi E-sports Business Opportunities: Why Companies Should Set Up a Branch in Saudi Arabia
The astronomical growth of the Saudi e-sports industry comes off the back of a $38 billion government plan. This investment aims to boost the local market and increase its global competitiveness.
Additionally, the Kingdom is now famous for its growing focus on the development of the high-profile video gaming category known as “AAA.” NEOM is home to one of the region’s first game development studios specializing in that area, attracting more tech giants from global markets.
Providing another jolt to the industry is the launch of a couple of venture funds (VCs) with a combined value of $120 million. These funds were created by the National Development Fund (NDF) and the Social Development Bank (SDB) to promote the gaming and e-sports sectors in Saudi Arabia. The announcement was made during the LEAP 2024 technology conference held earlier in May in Riyadh.
These initiatives provide a conducive environment for international players. They look to capitalize on the unmissable opportunities to elevate their overall business position and increase their exposure in one of the world’s top gaming hubs.
The confluence of increased government support, skilled talent, and a growing gaming demographic positions the country as a favorable place to set up a branch for international gaming firms.
Major tournaments like the E-sports World Cup and Olympic E-sports Games provide a platform for industry participants to exchange expertise and collaborate. This drives the development of more innovative games while advancing the Saudi e-sports market.