Massive investment is redefining the global gaming industry

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Europe, North America and Asia have traditionally been viewed as the primary players in the global gaming industry.

However, the landscape has shifted in recent times, with the Middle East emerging as a genuine threat to the traditional powerhouses in the sector.

Saudi Arabia has invested billions of dollars through its Public Investment Fund (PIF) to transform its economy and gaming is a crucial part of the plan.

Over $38 billion has been allocated via PIF’s Savvy Games Group to build a world-class gaming infrastructure which is becoming the envy of other nations.

With that in mind, read on as we assess how Saudi Arabia is powering its bid to become the epicentre of the lucrative gaming sector.

Government adopts a more liberal mindset

The lines between gaming and gambling have become increasingly blurred in recent years and Saudi Arabia has undoubtedly been impacted.

Many people in the region love to play blackjack online, despite the platforms which offer such games operating under licenses issued in other jurisdictions.

However, the fact that the Saudi government allows this to happen marks a seismic shift for a country which has traditionally outlawed such practices.

This more liberal mindset will likely result in the country establishing its own regulatory organisation to oversee the sector in the next few years.

The United Arab Emirates has already gone down this road, and other Middle East nations will find it difficult not to jump on the bandwagon.

Kuwait is among the countries which has been dragging its heels, but they are unlikely to risk being left behind by their powerful neighbours.

Saudis bid to become a big hitter in eSports

Saudi Arabia is on a mission to become the eSports capital of the world. It has a youthful population, cutting-edge infrastructure and unrivalled state backing.

They hosted the inaugural edition of the eSports World Cup which had a $60 million prize pool designed to attract the best gamers from every corner of the globe.

While the event was a massive success, there is still plenty of scope for growth. Over 500 million people follow competitive gaming which is around seven percent of the global population.

With the speed of broadband continually improving, worldwide tournaments becoming the norm and digital engagement increasing, those numbers should climb.

Saudi Arabia are already well-positioned to capitalise on the opportunity and look destined to become the global hub for the lucrative eSports sector.

While they face local competition from the UAE, the two nations’ willingness to embrace gaming is spurring them both to greater heights.

PIF is on a mission to dominate gaming

As mentioned earlier, Savvy Games Group is the primary vehicle for PIF’s plans to dominate the global gaming industry.

They have acquired ESL and FACEIT (subsequently merged into EFG), mobile gaming powerhouse Scopely, data firm Vindex, and a stake in Chinese company VSPO.

Savvy also launched Steer Studios in Riyadh to boost local game development. Despite initially focusing on mobile games, the studio will spread its wings into other genres.

PIF pulled off another major coup by securing the rights to host the Olympic eSports Games in 2025, which will fire gaming into another stratosphere.

Gaming is unquestionably a crucial piece of the puzzle as Saudi Arabia bids to shed its overreliance on energy revenue to become an entertainment hotspot.

While there are still challenges to overcome around regulation, culture and global acceptance, Saudi Arabia is hugely ambitious about its plans to dominate the gaming sector.