Saudi Arabia is tipped to become the next major gaming hub in the Middle East soon, amidst the government stepping up efforts to woo gamers and game developers to the country with billions of dollar investments to create infrastructure and incentives for the industry, industry insiders said.
The government initiatives seemed to be paying off well, with leading global and regional industry players such as Chinese tech giant Tencent and Gamers Hub Media Events, which runs the pioneering GameCentric platform in the UAE, striking partnerships with sport bodies and local companies to aggressively expand the country’s gaming sector.
Level Infinite, Tencent’s global gaming brand, struck a 3-year partnership with the Esports World Cup Foundation to drive the PUBG MOBILE and Honor of Kings eSports ecosystems in the region – and also globally, while GameCentric entered into a partnership deal with POWReSports to launch high-octane influencer management campaigns in the Kingdom.
Similar partnership deals by several more gaming companies are expected in the short-to-medium term for their ambitious entry plans into the Kingdom’s gaming market, industry insiders said.
The Esports World Cup Foundation, a non-profit organization dedicated to nurturing the development and expansion of the eSports and gaming sectors, is slated to organize the inaugural Esports World Cup 2024 in Riyadh this summer.
As part of the Tencent brand-Esports foundation partnership, PUBG MOBILE will unveil the all-new PUBG MOBILE World Cup with Esports World Cup, featuring a $3 million prize pool for competing teams.
Saudi authorities have also announced plans for a gaming and eSports district in Qiddiya – a mega-city projected as an entertainment hub – in line with its efforts to develop a major market for the gaming industry.
Saudi Arabia has fast growing base of game enthusiasts
Industry experts said global and regional industry players are setting their eyes on Saudi Arabia as the country already has a massive gamer base in the region, with its young, tech-savvy population taking to gaming in a big way in recent years.
A recent study estimated that there are now over 23 million gamers in Saudi Arabia, making up around 67 percent of the country’s population.
“Partnerships are always going to be a cornerstone for us to address growth and market expansion [in Saudi Arabia],” Saad Khan, Founder and CEO of GameCentric and Gamers Hub Media Events, told Arabian Business.
“Our launch related work in collaboration with POWReSports in Saudi Arabia is an important part of our gamer acquisition strategy and we will continue to invest into such relationships to drive the business forward,” he said.
Saudi Arabia spending billions of dollars to create ultimate global hub for games and eSports
The ambitious plans by companies such as Tencent and Gamers Hub Media come amidst media reports about Saudi Arabia spending around $8 billion for acquiring and building stakes in gaming companies, led by the Savvy Games Group.
The investments in gaming companies, reported by the Financial times, followed the Saudi Crown Prince revealing his intentions to transform the Kingdom into the ultimate global hub for games and eSports.
Saudi Arabia reportedly aims to become home to 250 gaming companies and studios, and create 39,000 jobs, with the industry expected to contribute about one percent to its GDP (gross domestic product) by 2030.
The proposed gaming and eSports district in Qiddiya is to be set up on 500,000 square meters of land and aims to host up to 25 e-sports teams at a time.
It will also have regional headquarters of more than 30 video game companies, according to Qiddiya Investment Company (QIC).
The firm estimates 10 million visitors annually by the year 2030.
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