Saudi Arabia heading to the next level thanks to esports gamble

In September 2022, the Saudi sovereign wealth fund earmarked nearly $40 billion for a new conglomerate aimed at transforming the Kingdom into a global hub for games and esports by 2030. (Shutterstock)
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Updated 29 July 2023
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Saudi Arabia heading to the next level thanks to esports gamble

  • Investment is part of Vision 2030 and plans to transform the Kingdom into a global hub for games and esports

RIYADH: With marquee football signings and a shake-up of the international golf tour, Saudi Arabia is making waves in the sporting world at an unprecedented rate.

Yet it is not just on the pitch or the green where the Kingdom is looking to become a global leader, it is on the console screen.

In September 2022, the Saudi sovereign wealth fund earmarked nearly $40 billion for a new conglomerate aimed at transforming the Kingdom into a global hub for games and esports by 2030 — and the move is already starting to pay off.

According to Vlad Belyanin, co-founder of True Gamers, a worldwide network of esports clubs that is launching in the Kingdom in early September, “everyone in the industry is looking at Saudi Arabia.”

Speaking to Arab News, he said: “After Ronaldo’s move to Al-Nasr and Al-Hilals €600 million ($662.06 million) offer to Lionel Messi we can expect Saudi Arabia to increase the integration of esports elements into traditional sports.

“I do not exclude that someone will assemble the best mixed team in the world, taking notable esports and traditional sports players.” 

The Middle East is a key player in the global gaming industry, with an impressive penetration rate and a strong commitment from governments to invest in the sector.

Alexander Schudey, managing director and partner at BCG

The investment by Saudi Arabia’s Public Investment Fund is part of the Kingdom’s Saudi National Gaming and Esports Strategy aimed at increasing the quality of life for egamers by improving players’ experience, providing new entertainment opportunities, and achieving an economic impact by contributing around SR50 billion ($13.33 billion) to the Kingdom’s gross domestic product by 2030.

The strategy is expected to lead to the creation of 39,000 new job opportunities by 2030.

Over $3 billion was invested in the industry by PIF last year, as part of the $38 billion commitment to be used by its company Savvy Games Group.

About a third of the announced amount will be spent on the purchase of a major game publisher, and the remaining funds will be used to acquire minority stakes in other gaming companies.

Acquisitions so far have included ESL and FACEIT for $1.5 billion in January 2022, Embracer Group for $1 billion in June 2022; VSPO for $265 million in March 2023, as well as Scopely for $4.9 billion in April 2023.

Brian Ward, CEO of Savvy Games Group told Arab News how the acquisition and merger of ESL FACEIT Group has enabled the creation of a force able to set the gold standard for esports competitions and gaming industry events. 




Saudi Arabia is attracting worldwide attention in the sector through its investments and acquisitions in cybersports. (Supplied)

“Saudi Arabia is very important for Savvy,” Ward said, adding: “It is a very exciting and rapidly growing market — the 19th biggest market globally. There are over 21 million gamers in KSA, 70 percent of the population — over 40 percent of whom are women.”

Ward stressed how Savvy’s aim is to make Saudi a global gaming hub. The company intends to do this by building capabilities and leading international and local gaming investments.

“We believe Savvy will have a significant beneficial economic impact in Saudi Arabia, both through its direct and indirect contribution to GDP, job creation and skills development,” he added.

The growth in esport is not confined to Saudi Arabia or the Middle East. Last year PwC predicted that in 2026 the global gaming industry would be a $320-billion industry, twice as much as in 2019.

Yet despite its global size, the Middle East is being seen as one of the hotspots for this growing industry.

According to a report from Boston Consulting Group released in June, more than 60 percent of the Middle East population are gaming enthusiasts, resulting in one of the highest shares of gaming mobile app downloads  — 50 percent compared to the global average of 40 percent.

“The Middle East is a key player in the global gaming industry, with an impressive penetration rate and a strong commitment from governments to invest in the sector,” Alexander Schudey, managing director and partner at BCG in a statement. 

Record investments are generating high expectations. Entrepreneurs who want to make money are now thinking about entering the Saudi-Arabian market.

Vlad Belyanin, co-founder of True Gamers

He added: “The region’s focus on gaming and the establishment of dedicated gaming hubs makes it an attractive destination for global gaming companies.

“The young and digitally savvy population, particularly in Saudi Arabia, where 70 percent of the population is below the age of 30, combined with higher disposable incomes and a preference for indoor activities due to the hot weather, further contribute to the region’s thriving gaming ecosystem.”

BCG’s latest report identified four major trends that will likely leave the biggest impact on the industry’s future.

These include audience growth and demographic shifts, whereby the gaming industry growth is broadening its demographic reach, appealing not just to Gen Y, who grew up playing video games, but also those entering their 30s, with an average gamer age of 31.

Another trend is innovation from players, with consumer communities playing a significant role in driving change in the industry, while mergers and acquisitions activity is leading the gaming industry to witness a surge in consolidation as major publishers, media companies and technology firms purchase studios and gaming-related assets globally. 

FAST FACTS

• Saudi Arabia’s National Gaming and Esports Strategy aims to contribute $13 billion to the Kingdom’s gross domestic product by 2030.

• PwC predicts that in 2026 the global gaming industry will be a $320-billion industry.

The final trend identified by the BCG report is new use cases, whereby the gaming industry is witnessing the emergence of the metaverse as a concept that is revolutionizing digital experiences.

The Kingdom is quickly becoming a global hub for gaming through investment and the launch of new products and technologies reflective of the above trends.

It is not just participants driving the growth of the sector, but those who wish to watch esports.

According to the Consumer Technology Association, the audience for cybersports will be 519 million viewers by 2024.

Technology and innovation play a major role in the esports industry and entrepreneurs, especially in Saudi Arabia, are capitalizing on these advancements to spur growth in the sector. 

We believe Savvy will have a significant beneficial economic impact in Saudi Arabia, both through its direct and indirect contribution to GDP, job creation and skills development.

Brian Ward, CEO of Savvy Games Group

“Cybersport is becoming an experimentation ground for artificial intelligence, chips, visualization, and big data technologies,” Belyanin told Arab News.

He added: “Games are becoming more accessible. The growing popularity of games on smartphones and tablets compared to PC gaming systems is driving game makers to release games on different platforms.

“Cross-platform and cloud-based gaming solutions promote hardware-independent games, and artificial intelligence ensures fair gameplay. Social gaming and cyber sports provide a platform for developers and players to build healthy gaming communities and improve brand reach.”

Sponsoring and hosting esports events and competitions further allows developers to build brand awareness and attract new players, he states, noting how True Gamers is developing and implementing new technologies in the user experience at its cybersports centers.

For example, True Gamers is the first in the world to use robotic dogs as waiters in clubs. Three mechanical assistants will appear in different clubs in Dubai, and by the end of 2024 their number will increase to around 20. Production of the test technology cost $100k, as well as an average $10k a month on updates and modifications of robots.

Saudi Arabia, stresses Belyanin, is attracting worldwide attention in the sector through its investments and acquisitions in cybersports.

“Record investments are generating high expectations,” he adds. “Entrepreneurs who want to make money are now thinking about entering the Saudi-Arabian market.

“They are thinking: ‘There is a lot of investment, so there is a lot of profit, and therefore I need to enter the market.’”

Belyanin added: “My point of view is different. If there are a lot of investments, the new gaming culture starts to grow there and therefore, it is interesting to work with it.

“This is huge long-term work, which will bring much more than a quick profit. We are not afraid of large-scale tasks; we are keen to create the future of gaming with our own hands.”


Closing Bell: Saudi main index slips to close at 11,438 

Updated 18 May 2025
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Closing Bell: Saudi main index slips to close at 11,438 

  • Kingdom’s parallel market Nomu lost 185.50 points, or 0.67%, to close at 27,655.56
  • MSCI Tadawul Index lost 6.21 points, or 0.42%, to close at 1,456.55

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, losing 46.11 points, or 0.40 percent, to close at 11,438.94. 

The total trading turnover of the benchmark index was SR3.68 billion ($983 million), as 85 of the stocks advanced and 153 retreated.

The Kingdom’s parallel market Nomu lost 185.50 points, or 0.67 percent, to close at 27,655.56. This comes as 26 of the listed stocks advanced while 52 retreated.

The MSCI Tadawul Index lost 6.21 points, or 0.42 percent, to close at 1,456.55.

The best-performing stock of the day was Etihad Atheeb Telecommunication Co., whose share price surged 6.44 percent to SR102.40.

Other top performers included Miahona Co., with its share price rising 4.59 percent to SR26.00, and Middle East Paper Co., which surged 4.55 percent to SR29.85.

SICO Saudi REIT Fund recorded the most significant drop, falling 5.72 percent to SR4.45.

Saudi Advanced Industries Co. also saw its stock prices fall 5.11 percent to SR26.95.

Jabal Omar Development Co. also saw its stock prices decline 3.38 percent to SR24.00.

On the announcements front, Bank Albilad raised $650 million from its US dollar-denominated additional tier 1 sukuk issuance. According to a Tadawul statement, the total number of sukuk stands at 3,250 with a par value of $200,000, a return of 6.5 percent per annum, and perpetual maturity. 

Bank Albilad ended the session at SR27.10, down 0.74 percent.

Sadara Basic Services Co. reported a net loss of SR1.26 billion for the first quarter of 2025, marking a 48 percent increase from the same period last year, according to a bourse filing.

The company attributed the deeper loss primarily to planned turnaround activities during the quarter, though this was partially offset by lower feedstock consumption and reduced interest expenses.

Rawasi Albina Investment Co. announced the completion of the memorandum of association and commercial registration of its new wholly owned subsidiary, Nemo Al Jazirah Co., with a capital of SR5,000. 

According to a Tadawul statement, the limited liability company will begin operations after finalizing all administrative and technical incorporation requirements. 

Shares of Rawasi Albina Investment Co. closed at SR4.00, gaining 2.25 percent. 

Middle East Pharmaceutical Industries Co. has renewed a Shariah-compliant credit facility agreement with Alinma Bank for SR50 million. 

According to a stock exchange disclosure, the one-year financing is backed by a promissory note worth SR55 million. The facility will be used to support the company’s working capital and asset financing needs.

Shares of the company ended the session at SR126.60, down 0.32 percent. 


Qatar’s FDI projects jump 110% in 2024, says investment agency chief

Updated 18 May 2025
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Qatar’s FDI projects jump 110% in 2024, says investment agency chief

  • Number of FDI projects reached 241 in 2024, up from 115 in 2023
  • Most of the investments were concentrated in key sectors, particularly wholesale and retail trade

RIYADH: Qatar saw a 109.6 percent year-on-year increase in foreign direct investment projects in 2024, more than doubling the 2023 total, reflecting growing global confidence in its economy, according to a top official. 

Speaking to Qatar News Agency, Sheikh Ali bin Alwaleed Al-Thani, CEO of the Investment Promotion Agency, said the number of FDI projects reached 241 in 2024, up from 115 in 2023. 

He attributed this growth to strong investor confidence in Qatar’s economic resilience and long-term strategic direction. 

“This growth is attributed to targeted investment policies, a supportive business environment, and the state’s commitment to economic diversification in line with Qatar National Vision 2030," the QNA report stated. 

Most of the investments were concentrated in key sectors, particularly wholesale and retail trade, which accounted for 77 undertakings, and administrative and support services, which had 41. 

Greenfield projects, involving new ventures rather than expansions, comprised 74 percent of the total, highlighting Qatar’s appeal as a destination for sustainable, long-term investments. 

Al-Thani stated that these developments were driven by recent reforms, including simplified licensing procedures and enhanced digital services, aligned with the economic diversification objectives of the Third National Development Strategy. 

He also pointed to the Ministry of Commerce and Industry’s Strategy for 2024–2030, which aims to boost the investment environment further by achieving 3.4 percent annual growth in non-oil sectors. 

The establishment of the National Statistics Centre was also highlighted as a milestone in enhancing data-driven policymaking and transparency, key enablers of a healthy investment climate, the official noted. 

Qatar’s global competitiveness continues to strengthen, Al-Thani said, citing its rise to 11th place in the International Institute for Management Development World Competitiveness Index for 2024. 

In terms of logistics and infrastructure, the country ranked 14th for logistics competence and 19th for infrastructure in the World Bank’s Logistics Performance Index. 

According to the agency, the new investment projects generated 9,348 jobs in 2024, a 122.7 percent increase from 4,197 jobs in 2023. 

These roles were largely in the same sectors that attracted the most FDI, including retail and wholesale trade, support services, accommodation and food services, and scientific research and development.

“Our strategy is firmly centered on attracting high-quality, knowledge-based investments that align with Qatar’s long-term economic diversification goals. We focus on sectors where Qatar offers a strong competitive advantage, and where innovation, technology and sustainability can generate real value for both investors and the local economy,” he was quoted as saying by QNA.

He added: “A core component of this strategy has been the development of strategic partnerships with leading global organisations. These collaborations go beyond job creation — they are focused on transferring knowledge, introducing cutting-edge technologies and embedding international best practices across key industries.” 

He said this investment approach supports key national objectives, including achieving an average annual economic growth rate of 4 percent, increasing labor productivity, and attracting $100 billion in FDI by 2030. 

Qatar’s achievements have also been recognized globally. The country ranked first worldwide for tax policy and basic infrastructure in the IMD World Competitiveness Ranking 2024, second for general infrastructure in the Global Innovation Index, and fourth for information and communications technology development in the ITU ICT Development Index. 

Its commitment to entrepreneurship and innovation was underlined in the 2024–2025 Global Entrepreneurship Monitor, where it ranked first globally in entrepreneurial intentions and employee activity, and ninth for start-up opportunities. 


Saudi Arabia’s Hail region signs $2.27bn in investment deals 

Updated 18 May 2025
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Saudi Arabia’s Hail region signs $2.27bn in investment deals 

  • 125 investment opportunities, including 14 strategic projects worth more than SR34.2 billion, were presented at the forum
  • More than 100 investment opportunities worth SR50 billion were showcased and listed on the “Invest Saudi” platform

JEDDAH: Saudi Arabia’s Hail region signed investment agreements worth SR8.5 billion ($2.27 billion) during its flagship investment forum, as the Kingdom intensifies efforts to unlock regional growth and attract private sector capital. 

The deals, signed across key sectors including agriculture, mining, tourism, and logistics, are part of a broader package of more than SR50 billion in identified investment opportunities unveiled at the Hail Investment Forum, the Saudi Press Agency reported. 

Saudi Arabia has been focusing on the untapped potential of smaller towns and regional municipalities, attracting investors and entrepreneurs. This shift from traditional urban centers marks a new era of diversification as the country pursues a more resilient and inclusive economy, reflecting the evolving priorities of Saudi Vision 2030. 

“The emir of Hail region witnessed the launch of a package of agreements, initiatives and projects amounting to SR8.5 billion, in qualitative partnerships between government agencies and investment entities to enhance the region’s growth and stimulate its economic environment,” the SPA report stated. 

Inaugurating the forum, Prince Abdulaziz bin Saad bin Abdulaziz, governor of Hail region, spoke about the unwavering support the region receives from the wise leadership.  

In his speech, Prince Abdulaziz emphasized that the Hail region holds competitive and strategic advantages that make it an attractive environment for investment across various sectors, marking the beginning of a new phase of investment and sustainable development throughout the region and its governorates. 

The forum, held under the theme “Be Part of the Promising Future,” was organized by the Hail Chamber in partnership with the regional governorate. It attracted senior officials, including Minister of Investment Khalid Al-Falih and Deputy Minister of Environment, Water and Agriculture Mansour Al-Mushaiti. 

A total of 125 investment opportunities, including 14 strategic projects worth more than SR34.2 billion, were presented in support of the local business sector. 

Hani Al-Khalifa, chairman of the Hail Chamber, said the forum promotes the region’s economic competitiveness and investment landscape. 

Hassan Al-Huwaizi, chairman of the Federation of Saudi Chambers, called the event a vital platform for presenting high-quality investment opportunities, adding that Hail’s appeal has grown due to government facilitation. 

In his remarks, Al-Mushaiti described Hail as a unique destination for agricultural investment due to its rich natural resources. He noted the Agricultural Development Fund has disbursed over SR7 billion in the region, helping raise Hail’s share of the Kingdom’s agricultural gross domestic product to more than 10 percent. 

The region also launched the Middle East’s first and largest trout salmon production project, expected to cut imports by 50 percent and generate SR5 billion in sales over the next decade, he said. 

A new red meat investment is set to boost self-sufficiency, which reached 61 percent by end-2024. Hail is also home to one of the largest poultry production projects, now valued at more than SR11 billion following a recent SR4.5 billion expansion.

Al-Mushaiti highlighted the SR800 million in support provided by the Saudi Reef program in Hail, helping smallholder farmers through local agricultural projects worth over SR40 million. He added that 14 water and environmental projects worth SR1.2 billion, along with seven vegetation projects worth SR116 million, are underway under the Saudi Green Initiative. 

Al-Falih, speaking at the event, reiterated government support for investors and pointed to Hail’s strategic advantages such as its location that connects five other regions, fertile land, diverse terrain, and developing infrastructure. 

He added that foreign direct investment in the region has reached SR1.44 billion, with 177 investment licenses issued to international companies across sectors such as construction, manufacturing, tourism, food, and retail. 

More than 100 investment opportunities worth SR50 billion were showcased and listed on the “Invest Saudi” platform, spanning agriculture, tourism, manufacturing, sports and more. 

A memorandum of understanding was signed between the Ministry of Investment and the Hail Region Development Authority to facilitate strategic investments and promote sustainable growth in the region. 

The forum also featured nine panel sessions covering 42 investment themes, focusing on tourism, quality of life, agriculture, logistics, energy, and education. 


Omani banking sector credit surges 7.4% in February

Updated 18 May 2025
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Omani banking sector credit surges 7.4% in February

  • Credit extended to the private sector rose by 6.1% annually to 27.3 billion rials
  • Total deposits in the Omani banking sector registered a 6.4% year-on-year growth to reach 32 billion rials

RIYADH: The total credit extended by Oman’s banking sector surged by 7.4 percent year on year to reach 32.9 billion Omani rials ($85.46 billion) by the end of February, new figures showed. 

Released by the Central Bank of Oman, the data indicated that credit extended to the private sector rose by 6.1 percent annually to 27.3 billion rials during the same period. 

This aligns with Oman’s projected economic growth of 3.4 percent in 2025, outpacing many global peers, according to Minister of Commerce, Industry and Investment Promotion Qais bin Mohammed Al-Yousef, who spoke at the International Investment Forum in Muscat in April. 

The February report said: “Non-financial corporations received the highest share of the total private sector credit at approximately 46.3 percent at end-February 2025, followed by the household sector at 44.3 percent.” 

Oman achieved a 6.2 percent budget surplus and a 2.4 percent current account gain in 2024, driven by prudent fiscal policies, high oil prices, and nonhydrocarbon export growth. Shutterstock

It added: “The share of financial corporations was 5.5 percent while other sectors received the remaining 3.8 percent of total private sector credit as at the end of February 2025.” 

The analysis further revealed that total deposits in the Omani banking sector registered a 6.4 percent year-on-year growth to reach 32 billion rials at the end of February. It added that total private sector deposits increased 8.2 percent to 21 billion rials. 

“In terms of sector-wise composition of private sector deposits, the biggest contribution is from household deposits at 50.3 percent, followed by non-financial corporations at 30.4 percent, financial corporations at 16.9 percent and other sectors at 2.4 percent,” the report concluded in that regard.

In January, the 2024 Article IV consultation issued by the International Monetary Fund disclosed that Oman achieved a 6.2 percent budget surplus and a 2.4 percent current account gain in 2024, driven by prudent fiscal policies, high oil prices, and nonhydrocarbon export growth. At the time, the IMF attributed these figures to effective economic management. 

Despite higher social spending under a new protection law, the nonhydrocarbon primary deficit as a share of nonhydrocarbon gross domestic product remained stable, highlighting the government’s commitment to financial discipline, the IMF release explained at the time. 

Government debt as a percentage of gross domestic product also declined further, reaching 35 percent in 2024, marking continued improvement in Oman’s economic fundamentals. 

The findings reflect the broader resilience across the Gulf Cooperation Council region, as highlighted in a December IMF report, which noted that GCC economies have successfully navigated recent shocks, thanks to robust non-hydrocarbon growth and continued reform efforts.


Saudi Arabia’s US Treasury holdings rise to $131.6bn in March

Updated 18 May 2025
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Saudi Arabia’s US Treasury holdings rise to $131.6bn in March

  • Kingdom maintained 17th place among the largest holders of such financial instruments in March
  • Saudi Arabia and UAE are the only GCC countries among the top 20 holders of US Treasury securities

RIYADH: Saudi Arabia’s holdings of US Treasury securities stood at $131.6 billion in March, reflecting an increase of $5.2 billion from February, according to the latest data.

The analysis, released by the US Treasury, represents a month-on-month increase of 4.11 percent following a marginal decrease of 0.39 percent from January to February.

The change reflects market fluctuations or potential portfolio rebalancing as the Kingdom navigates global economic conditions. Saudi Arabia’s accumulation of US Treasuries is part of its broader strategy to manage foreign reserves and diversify low-risk assets.

The data revealed that the Kingdom maintained 17th place among the largest holders of such financial instruments in March.

The study also shows that Saudi Arabia and the UAE are the only Gulf Cooperation Council countries among the top 20 holders of US Treasury securities.

In March, the Kingdom’s holdings of US Treasuries included long-term bonds worth $103.8 billion, representing 78.8 percent of the total, and short-term bonds amounting to $23.2 billion, accounting for 17.6 percent.

In its latest release, the US Department of the Treasury stated: “The sum total in March of all net foreign acquisitions of long-term securities, short-term US securities, and banking flows was a net TIC (Treasury International Capital) inflow of $254.3 billion.”

Of this, net foreign private inflows accounted for $259.2 billion, and net foreign official outflows reached $4.9 billion.

According to a press release, foreign residents increased their holdings of long-term US securities to $183.2 billion in March, with private investors purchasing $146.0 billion while foreign official institutions recorded net sales of $37.3 billion. US residents also raised their holdings of long-term foreign securities with net purchases of $21.5 billion.

Meanwhile, foreign residents also boosted their US Treasury bill holdings in March. “Foreign resident holdings of all dollar-denominated short-term US securities and other custody liabilities increased by $98.6 billion,” the release added.

Conversely, banks’ net dollar-denominated liabilities to foreign residents dropped by $6.1 billion.

The report said Japan was the largest investor in US treasury bonds in March, with holdings totaling $1.13 trillion, followed by the UK and China, with portfolios valued at $779.3 billion and $765.4 billion, respectively.

The Cayman Islands and Canada were ranked fourth and fifth on the list, with treasury holdings amounting to $455.3 billion and $426.2 billion, respectively.