The National Development Fund (NDF) and the Social Development Bank (SDB) announced the signing of two agreements to establish two venture funds with a total size of SAR450 million ($120 million), an inventive step to support the gaming and esports industry within the Kingdom. An important step in fostering the flourishing gaming and eSports industries was taken when the announcement was made during the LEAP 2024 technology conference in Riyadh.
The program, which works with the Saudi Esports Federation, is a component of the Gaming and Esports Financing Program. In order to meet the goals of the National Gaming and Esports Strategy and the Digital Content Program (Ignite), Merak Capital and IMPACT46, the organizations in charge of the two funds, will offer equity investments as development financing for gaming and Esports companies. This will help to boost local content development, accelerate growth, and increase the industry’s economic and social impact.
With a target size of SAR300 million ($80 million), Merak Capital is slated to oversee the first investment fund. The fund’s objective is to create a gaming accelerator supported by venture capital to promote expansion and nurture regional talent in the gaming sector. The intention is to establish Saudi businesses as industry leaders in this thriving field.
The second fund aims to encourage private sector investment in the local gaming and Esports industry. It is managed by IMPACT46 and has a total value of SAR150 million ($40 million). To further enhance the ecosystem of the industry, it also aims to draw in foreign companies and studios to establish a more significant presence in the Kingdom.
Dr. Stephen Grove, Governor of NDF, stated, “The gaming and Esports industry has seen exponential growth globally, generating substantial revenue and job opportunities. With Saudi Arabia’s young demographic and other attractive investment components, NDF and our partners are prioritizing innovative financing solutions for this industry. We aim to ensure its financial sustainability and contribute to the Kingdom’s economic diversification and job creation efforts.”
The CEO of SDB, Eng. Sultan Al-Humaidi, underlined the company’s dedication to assisting the gaming and e-sports sector, acknowledging its potential for expansion within the Kingdom.
“Our objective is to cultivate the industry to self-sufficiency, positioning the Kingdom as a global hub. We provide the necessary support to ensure this venture succeeds, advancing the Saudi digital economy forward as a key component of the Kingdom’s digital transformation goals aligned with Saudi Vision 2030.”
NDF’s efforts to advance Saudi Arabia’s promising industries and increase their economic impact are reflected in this. In order to create an atmosphere that draws in local talent, offer promising experiences, and pursue high-caliber game production and development projects, all of this can be achieved with empowerment and financial development support.
