The video game industry in Saudi Arabia is rapidly growing and is expected to significantly contribute to the Kingdom’s economic diversification goals, according to experts. The gaming sector is being recognized as a major entertainment vertical, second only to video and TV streaming globally.
Povilas Joniskis from Boston Consulting Group highlights the Kingdom’s young population as a driving force behind this growth, viewing gaming as a key social tool. This aligns with Saudi Arabia’s National Gaming and Esports Strategy, which aims to generate jobs and add $13 billion to the GDP.
Reports show Saudi Arabia ranks second globally in daily gaming time, attracting global developers and creating local opportunities. Federico Pienovi of Globant notes the gaming sector is expanding job opportunities in technology and creative fields, integrated into projects like NEOM and Qiddiya.
Globant has partnered with Qiddiya Investment Co. to develop a digital ecosystem enhancing visitor interaction at Qiddiya City. This is part of a broader strategy to position Saudi Arabia as a global gaming hub by 2030.
High disposable income and robust technical infrastructure, including low latency rates for major games, bolster the gaming industry. The Kingdom’s high smartphone penetration and internet access make mobile gaming widely accessible, supporting the rise of esports and online gaming communities.
Saudi Arabia’s ambition to become a global gaming hub is supported by strategic investments and partnerships. The Public Investment Fund (PIF) plays a crucial role, increasing stakes in companies like Koei Tecmo and Nintendo.
The Savvy Games Group, backed by the PIF, is investing $37.7 billion to attract international developers, focusing on talent development and innovation. This initiative is positioning Saudi Arabia as a leading player in the global esports and gaming market.
Experts suggest further growth could be achieved by enhancing game production incentives and expanding educational programs to support talent development. Innovation zones and competitive gaming facilities could further boost the industry, drawing international attention.