Saudi esports, gaming sectors to boost GDP by $13.3bn

Esports and the gaming sector could contribute as much as $13.3bn (SAR50bn) to Saudi Arabia’s annual gross domestic product (GDP) and generate nearly 39,000 jobs by 2030, according to a study commissioned by PwC and the Saudi Esports Federation.

Saudi Arabia unveiled its National Gaming and Esports Sector Strategy in 2022 to foster a thriving and competitive esports ecosystem as part of Vision 2030, an initiative aimed at social and economic transformation.

“Through strategic investments and a dedicated focus on talent development, we are building an ecosystem that positions the kingdom as a global leader in Esports. This report underscores the potential of Esports not only as a thriving industry but as a key pillar in our economic diversification efforts under Vision 2030,” said Turki Alfawzan, CEO of the Saudi Esports Federation.

There is a growing interest in the esports industry in the Middle East. Governments and private entities are investing in esports infrastructure, including gaming zones, arenas, and global tournaments. Gaming revenues in the Middle East and Africa were approximately $7.2 billion in 2023, with Saudi Arabia emerging as a key player in this growth.

Last October, Saudi Arabia launched an annual Esports World Cup. The first edition, which was watched by 500 million viewers worldwide, concluded in Riyadh earlier in August.

The competition lasted two months and hosted 22 tournaments across 21 titles, with a total prize pool of $60m.

Meanwhile, Saudi Arabia will host the inaugural Olympic Esports Games in 2025 under a 12-year partnership agreement with the International Olympic Committee (IOC).

The partnership between the Saudi NOC and IOC coincides with a period of remarkable growth in sports in Saudi Arabia.

Saudi Arabia has invested heavily in sports, including soccer, motorsports, boxing, and golf. Since 2018, the kingdom has also hosted more than 100 international events for both male and female athletes, including esports, football, tennis, equestrian, and golf, drawing in more than 2.6 million sports fans.

The Public Investment Fund (PIF), the kingdom’s sovereign fund, launched a new company in August 2023 to accelerate the growth of the sports sector in the country and across the MENA region.

The new company, SRJ Sports Investments, will invest in acquiring and creating new sports events IP, commercial rights of popular and prominent sports competitions and hosting major global events in Saudi Arabia.

Furthermore, the PIF is reportedly in discussions with multiple boxing stakeholders to create a league, potentially reshaping the sport’s competitive landscape.

Read: Saudi Arabia to host inaugural Olympic Esports Games, IOC says