Saudi Arabia doubles down on e-sports with $120 million venture funds

Saudi Arabia's National Development Fund (NDF) is making a significant investment in the burgeoning e-sports industry, announcing two new venture funds totaling $120 million (SAR 450 million) during the LEAP 2024 conference in Riyadh.

The first fund, valued at $80 million (SAR 300 million) and managed by Merak Capital, focuses on fostering local talent and e-sports leadership. It will establish a gaming accelerator backed by venture investments, propelling Saudi companies to the forefront of the global scene.

The second fund, managed by IMPACT46 with a value of $40 million (SAR 150 million), aims to stimulate private sector investment in the domestic gaming and e-sports landscape. This fund seeks to attract established firms and studios, bolstering their presence within the Kingdom.

This move underscores Saudi Arabia's aspirations to become a major player in the global e-sports arena. The country has already hosted prestigious tournaments like the E-sports World Cup and continues to invest heavily despite industry-wide economic challenges.

However, these investments have also drawn criticism. Some within the e-sports community view them as "e-sportswashing" – a tactic to mask human rights concerns through financial influence. The NDF, however, remains committed to its vision.

Dr Stephen Grove, Governor of NDF, stated: "The global gaming and e-sports industry has witnessed explosive growth, generating significant revenue and job opportunities. With Saudi Arabia's young population and other attractive investment prospects, the NDF and our partners are prioritizing innovative financing solutions for this sector. We aim to ensure its long-term financial stability and contribute to the Kingdom's economic diversification and job creation goals."

This investment signifies Saudi Arabia's commitment to e-sports, seeking not only to become a major player but also to nurture a sustainable domestic scene that fosters economic growth and job creation.