Saudi Arabia’s National Development Fund (NDF) announces the establishment of two new venture capital funds, collectively worth $120 million, dedicated to the burgeoning gaming and esports sectors.
One fund, managed by Merak Capital, boasts a value of SR300 million (approximately $80 million) and is designed to support the growth of Saudi gaming companies by creating a gaming accelerator. This initiative aims to position local enterprises at the forefront of the esports industry.
The second fund, administered by Impact46, commands SR150 million (around $40 million) and seeks to stimulate private sector investment in the nation’s gaming and esports landscape.
This financial commitment represents the latest significant investment by the Gulf nation in the competitive gaming arena. The Kingdom’s strategy for gaming and esports is set to generate economic contributions estimated at SR50 billion ($13.3 billion) by the year 2030.
Moreover, the country is gearing up to host the inaugural Esports World Cup later this year, promising the largest prize pool ever in esports history and featuring multiple gaming titles.
“The gaming and esports industry has witnessed a global surge, generating significant revenue and employment opportunities,” commented Dr. Stephen Grove, governor of the NDF. “With Saudi Arabia’s youthful population and other attractive investment components, the NDF and our associates are focusing on pioneering financial solutions for this sector. Our objective is to bolster its financial robustness while furthering the Kingdom’s goals of economic diversification and job creation.”
The unveiling of these investment funds precedes the much-anticipated Esports World Cup, set to commence in Riyadh later this summer.