In a bold move to enhance the gaming and Esports sector in Saudi Arabia, the National Development Fund (NDF), together with the Social Development Bank (SDB), have initiated the signing of two agreements to create a pair of venture funds totaling SAR450 million (approximately $120 million). This development was unveiled at the LEAP 2024 tech event in Riyadh, signaling a pivotal advancement in fostering the burgeoning gaming and Esports sphere.
These agreements are part of the broader Gaming and Esports Financing Program, in partnership with the Saudi Esports Federation. The funds, to be managed by Merak Capital and IMPACT 46, will offer equity investments to gaming and Esports enterprises, with the aim of propelling growth, enriching local content, and enhancing the sector’s economic and societal contributions. These efforts are aligned with the aspirations of the National Gaming and Esports Strategy and the Digital Content Program (Ignite).
Merak Capital is poised to oversee the first fund, with an allocation of SAR300 million ($80 million), which will concentrate on fostering a gaming accelerator and venture investment to scale the industry and nurture domestic talents. The ambition is to propel Saudi gaming firms to the forefront of this dynamic market.
The second fund, steered by IMPACT46 and valued at SAR150 million ($40 million), is designed to invigorate private investment into the local gaming and Esports ecosystem. It also aims to lure international entities and studios to set up a stronger foothold in the Kingdom, thereby enriching the industry’s milieu.
Dr. Stephen Grove, the Governor of NDF, remarked on the exponential global surge of the gaming and Esports industry, highlighting its capacity for revenue generation and employment creation. He noted the Kingdom’s demographic advantages and other investment merits, asserting NDF’s dedication to pioneering financial solutions to bolster the industry’s fiscal resilience and support Saudi Arabia’s economic diversification and job creation initiatives.
Eng. Sultan Al-Humaidi, CEO of SDB, reiterated the bank’s commitment to nurturing the gaming and Esports sector in light of its potential for domestic expansion. Our objective is to cultivate the industry to self-sufficiency, positioning the Kingdom as a global hub,
he stated, underscoring the drive to ensure the success of this venture and advance the Saudi digital economy, in sync with the Kingdom’s digital transformation targets part of Saudi Vision 2030.
The orchestration of these funds is a testament to NDF’s efforts to evolve Saudi Arabia’s promising sectors and amplify their economic contributions. This is achieved by fostering an environment conducive to local talent, offering enriching experiences, and focusing on high-quality game production and development projects.
About the National Development Fund: Inaugurated on October 2, 2017, under the leadership of Crown Prince Mohammed bin Salman Al-Saud, the NDF is committed to propelling the Kingdom’s economic transformation and sustainable growth. Supervising a network of 12 development funds and banks, the NDF aims to bolster performance, enhance coordination, and maximize economic and social impacts, particularly in investment sectors pivotal to the fulfillment of Saudi Vision 2030.