How PIF is supercharging the new golden age of gaming
Valued at more than $200 billion globally – larger than the film and music industries combined – the gaming industry has evolved far beyond the realm of entertainment. Games are now home to virtual economies and used as educational tools, and they are influencing the business world by offering new ways to reach their customers. As gaming expands, countries have been racing to stake their claim on a sector that PWC says will see revenues top $300 billion by 2028.
Unlike mature gaming markets in Europe, the U.S. and Asia, Saudi Arabia is racing to establish an entire gaming ecosystem from the ground up.
The Middle East already outpaces global growth in gaming, with Saudis representing the bulk of the region’s gamers. Meanwhile, the 420 million people in the world who speak Arabic have been traditionally underserved by the gaming industry.
Growing gaming globally
In 2022, Saudi Arabia kickstarted a new era for the sector when His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, Prime Minister and Chairman of PIF, launched the National Gaming and Esports Strategy. The country was given a clear mandate to become the world hub for games and esports, and PIF, one of the world’s largest sovereign wealth funds, was tasked with helping to achieve this goal.
PIF’s goal is to connect the gaming industry like never before and establish a centralized hub for game developers, marketers, distributors, hardware manufacturers and IP.
PIF’s Savvy Games Group already owns the largest esports company in the world, ESL FACEIT Group (EFG), a merger between two esports organizers Savvy bought. The company’s acquisition of U.S. games publisher Scopely means Savvy now ranks among the world’s top 20 game developers.
“Savvy Games Group was created by PIF to drive the long-term growth of the global games and esports industry and develop Saudi Arabia into a games and esports hub,” says Brian Ward, CEO, Savvy Games Group.
“Savvy is in the unique position of being based in the only country that has a National Gaming and Esports Strategy. This strategy sits as a part of Vision 2030 and allows Savvy to invest long-term, patient capital to empower people and communities across the world.
“By creating jobs, enabling talent, and establishing an environment for the industry to flourish, Savvy creates the space for future growth in the hugely exciting Saudi market.”
As well as advancing the global gaming industry worldwide, one of Savvy’s goals is to localize gaming in Saudi Arabia. A native industry is a powerful driver of revenue generation and economic diversification: In the U.S., for example, the world’s second-biggest games market (after China), every job in the video game industry supports at least 2.36 additional jobs in the national economy. Meanwhile, gamers – tech-savvy and constantly searching for new experiences – are helping to catalyze technological innovation. Indeed, gaming has been credited for developments in artificial intelligence and other advanced technologies.
Supporting the sector
Savvy’s efforts to develop Saudi Arabia’s games sector includes a dedicated business unit that works with government ministries and commercial partners around three pillars: incentives for FDI; support for local entrepreneurs; and training and development.
Gaming has become a national priority, and the National Development Fund and Social Development Bank have created gaming investment funds. The country is the region’s fastest-growing datacenter market, ensuring that games are hosted on local servers so data can travel as quickly as possible to and from user devices.
The ultimate “game changer” may be PIF’s plan to bring the gaming ecosystem together in the world’s first gaming city. Its Qiddiya Esports and Gaming District aims to attract 10 million visitors a year to its venues by 2030, and incubate 30 leading video game development companies. It supports the National Strategy for Gaming and Esports, which aims to incubate 250 companies, create 39,000 jobs and contribute $13.3 billion to the country’s GDP.
Given Saudi Arabia’s ambitious gaming strategy, it’s fitting that the Esports World Cup came to Riyadh in 2024. The event featured a prize pool of over $60 million, the largest in esports history. Saudi Arabia will also host the inaugural Olympic Esports Games in partnership with the International Olympic Committee.
As one of the first countries to create a social and economic outlook for gaming, Saudi Arabia is on track to build a games and esports ecosystem that matches the gaming passion of its population.
It’s a visionary move that positions Saudi Arabia at the forefront of 21st-century sports, entertainment and technology – capitalizing on not only a local opportunity, but a global one, and tapping into the more than a third of the world’s population who are active gamers.
Produced for PIF by Bloomberg
