The National Development Fund (NDF) and the Social Development Bank (SDB) in Saudi Arabia have joined forces to boost the gaming and Esports industry in the country. Both parties have announced the signing of two agreements to establish two venture funds with a combined value of SAR450 million ($120 million). This announcement was made during the LEAP 2024 tech conference in Riyadh, signaling a significant move towards nurturing the thriving gaming and Esports industry.
Read more: Saudi to invest $38 billion in gaming
Promoting local content development and industry impact
This initiative is part of the Gaming and Esports Financing Program, which collaborates with the Saudi Esports Federation. The two funds, managed by Merak Capital and IMPACT 46, will provide development financing for gaming and Esports companies through equity investments. This investment aims to accelerate growth, promote local content development, and increase the industry’s economic and social impact, aligning with the objectives of the National Gaming and Esports Strategy and the Digital Content Program (Ignite).
Merak Capital will oversee the first investment fund, which amounts to SAR300 million ($80 million). The focus of this fund will be on establishing a gaming accelerator supported by venture investment. The goal is to stimulate growth and cultivate local talent in the gaming industry, aiming to position Saudi companies as leaders in this dynamic sector.
The second fund, managed by IMPACT46 and valued at SAR150 million ($40 million), aims to stimulate private sector investment in the local gaming and Esports industry. It also aims to attract international firms and studios to establish a stronger presence in the Kingdom, thus enriching the sector’s ecosystem.
Substantial revenue and job opportunities
Dr. Stephen Grove, governor of NDF, highlighted the exponential global growth of the gaming and Esports industry, which generates significant revenue and job opportunities. With Saudi Arabia’s young demographic and other attractive investment factors, NDF and its partners are prioritizing innovative financing solutions for this industry. The objective is to ensure its financial sustainability and contribute to the Kingdom’s economic diversification and job creation efforts.
Eng. Sultan Al-Humaidi, CEO of SDB, affirmed SDB’s commitment to supporting the gaming and Esports industry, recognizing its growth potential within the Kingdom. The aim is to develop the industry to a point of self-sufficiency, positioning Saudi Arabia as a global hub. SDB provides the necessary support to ensure the success of this venture, advancing the Saudi digital economy as a key component of the Kingdom’s digital transformation goals outlined in Saudi Vision 2030, he added.
This initiative is part of NDF’s broader efforts to develop promising sectors in Saudi Arabia and enhance their contribution to the national economy. It seeks to create an environment that attracts local talent, delivers promising experiences, and targets top-tier game production and development projects.
Focus on promising investment sectors for Saudi Vision 2030
NDF was established on October 2, 2017, under the leadership of His Royal Highness Prince Mohammed bin Salman Al-Saud, Crown Prince and Prime Minister. The fund oversees 12 development funds and banks, with the aim of driving the Kingdom’s economic transformation and sustainable development. By enhancing performance, fostering coordination, and amplifying economic and social impacts, NDF focuses on promising investment sectors that support the objectives of Saudi Vision 2030.
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