By 2030, the Esports and gaming sector in Saudi Arabia is projected to contribute approximately $13.3 billion (SAR50 billion) to the Kingdom’s GDP and create nearly 39,000 jobs, according to the National Gaming and Esports Strategy. This potential is highlighted in PwC Middle East’s recent report, produced in collaboration with the Saudi Esports Federation, titled “Centre of the Game: KSA Emerges as a Significant Player in the Global Esports Market.” The report emphasizes Saudi Arabia’s commitment to developing a comprehensive Esports value chain, which aims to establish the Kingdom as a hub for Esports by 2030 while generating new career and business opportunities.
The global Esports industry has seen remarkable growth in recent years, currently valued at over $1.4 billion, with projections to reach $1.86 billion by next year. This growth is driven by various revenue streams, including media rights, sponsorships, advertising, merchandise, ticket sales, and fees from game publishers.
Commitment to innovation
Turki Alfawzan, CEO of the Saudi Esports Federation, remarked that the Esports sector exemplifies Saudi Arabia’s dedication to innovation and youth empowerment. He noted that through strategic investments and a focus on talent development, the Kingdom is cultivating an ecosystem that positions it as a global leader in Esports. Alfawzan emphasized that this report highlights Esports not just as a flourishing industry, but as an essential component of the Kingdom’s economic diversification efforts under Vision 2030. He expressed enthusiasm for fostering a vibrant community that promotes creativity, engagement, and excellence on the international stage.
Regional investment and engagement
In the Middle East, interest in Esports is growing significantly, with both government and private entities investing in infrastructure such as gaming zones, arenas, and international tournaments. In 2023, gaming revenues in the Middle East and Africa reached approximately $7.2 billion, with Saudi Arabia emerging as a key player. The Kingdom boasts 23.5 million gaming enthusiasts, representing 67 percent of its population, and nearly 1,000 players are pursuing Esports as full-time careers.
Fostering a thriving ecosystem
Abdulrahman Kanafani, consulting partner at PwC Middle East, noted that high levels of mobile and digital penetration, a large youth demographic, and robust government support have created an ideal environment for Esports growth in the region. He highlighted that Esports has transformed from merely entertainment into a significant cultural and economic force, leading to the rise of professional players, teams, leagues, and substantial cash prizes. With Saudi Arabia’s strategic focus on youth engagement and talent development, the country is well-positioned to capitalize on this growing momentum.
Strategic vision for the future
Moreover, in 2022, the Kingdom launched its National Gaming and Esports Sector Strategy to cultivate a competitive and attractive ecosystem for Esports, aligning with Vision 2030’s goals for economic diversification. The Saudi Esports Federation (SEF) is at the forefront of these efforts, aiming to nurture the industry and position Saudi Arabia as the global center for Esports.
Challenges ahead
However, despite its rapid expansion, the global Esports sector faces challenges, including monetization issues related to ticket sales, merchandise, and broadcasting rights. Additionally, there are technological hurdles, such as a competitive hardware market, rapid technological advancements, diverse consumer preferences, compatibility issues, and a lack of regulatory standards.
Read more: Saudi Crown Prince launches Esports World Cup
Positive growth outlook
Nonetheless, the growth outlook for the region remains optimistic, with Saudi Arabia continuing its initiatives to sustain the sector’s upward trajectory. For example, Qiddiya City in Saudi Arabia has announced plans for the world’s first comprehensive gaming and Esports district, expected to attract around 10 million visitors annually.
Furthermore, as the Kingdom establishes the foundation for a thriving Esports ecosystem, maintaining momentum will be essential to realizing its vision of becoming a premier destination in the global Esports arena.
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