The Gulf presents a significant growth opportunity for the global gaming industry due to its young and tech-savvy population, extensive government support, and continued investment in tourism, hospitality and entertainment. According to the 2022 census, 63% of Saudi Arabia’s population is under the age of 30, with the median age being 29; the average disposable income for Saudi nationals is also relatively high by global standards. Moreover, the country’s hot climate means that people tend to spend more time indoors, making gaming a popular recreational activity. With its market worth an estimated $1.8bn, the Kingdom represents 45% of the MENA gaming industry and is positioned to play a leading role in its continued growth.
As a specific segment of the gaming industry, the global e-sports market was valued at more than $1.4bn in 2022, according to US-based research firm Cognitive Market Research. The sector is projected to continue to expand, with projections putting it at nearly $4.5bn by 2030, with a compound annual growth rate of 17.8% from 2023 to 2030. The Gulf is expected to contribute to this expansion, with the number of e-sports enthusiasts in the MENA region projected to hit 318m by 2025.
Strategy & Key Players
Launched in September 2022, Saudi Arabia’s National Gaming and E-sports Strategy aims to develop the entirety of the related value chain to create 40,000 jobs and have 30 games be within the top-300 by 2030, with the segment’s contribution to GDP anticipated to reach SR50bn ($13.3bn) by the same year. Specifically for the e-sports segment, Saudi Arabia plans to become the world’s leading e-sports host by organising the most viewed e-sports games, as well as being among the top-three countries in terms of e-sports athletes per capita. To achieve these goals, the following strategic lines have been identified: achieving global leadership in e-sports events by organising the most viewed global events; creating, facilitating and exporting intellectual property related to e-sports; developing a grassroots ecosystem to pave the way for local talent and enable them to become globally recognised figures; and assuming a larger role in international e-sports federations.
Savvy Games Group is one of the main entities driving this strategy forwards. In September 2022 the Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth entity, allocated $38bn to Savvy to invest in gaming and e-sports across the full value chain. About a third of the announced amount is set to be spent on purchasing a major game publisher, while half is expected to be used to acquire minority stakes in other gaming companies. Savvy’s moves have included the acquisitions of German e-sports organiser ESL and UK e-sports platform FACEIT for a combined $1.5bn in January 2022; a $265m investment in VSPO, a Chinese e-sports-focused agency that houses multiple e-sports teams, in March 2023, making Savvy its single largest equity holder; and the acquisition of Scopely, a US mobile-first video game developer and distributor, for $4.9bn in a deal concluded in July 2023.
Another important entity is Qatar E-Sports Federation (QESF). Since its establishment in October 2021, it has occupied leading roles in international federations to support the growth and regulation of e-sports, including the Global E-sports Federation, the Arab E-sports Federation and the GCC E-sports Federation. In 2024, QESF and E-sports Battle launched a Dota 2 league with a combined prize pool of $2.6m, marking a major step in establishing Qatar as a centre for international e-sports competitions.
Opportunities
Telecommunications and physical venues are essential infrastructure for developing a thriving e-sports industry. Strong bandwidth and 5G capabilities are essential to support e-sports, with some telecommunications operators localising servers to reduce latency. Leading e-sports countries are also bringing gaming out of people’s homes and into public spaces. This includes local gaming centres for communities to advance their skills, as well as arenas or stadiums for hosting large-scale e-sports events.
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