US$120M venture funds for esports established in Saudi Arabia

Saudi Arabia’s aim of becoming an esports capital just got boosted by two venture funds aiming to help establish its mark in the gaming and esports industry.

The country’s National Development Fund (NDF) has announced recently that these two funds will be done in collaboration with the country’s Social Development Bank (SDB).

During the LEAP 2024 technology conference in Riyadh, the creation of the fund was announced with a reported value of US$120 million, or SAR450 million in the local currency.

NDF governor Dr. Stephen Grove told Saudi Arabia Economy that the fund aims to capitalize on the popularity of the gaming and esports industry.

“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,” Grove told told Saudi Arabia Economy.

The two funds will be managed by different funding managers.

The first investment fund is valued at more or less US$80 million and will focus on creating a venture-backed gaming accelerator company that aims to put Saudi companies as leaders in esports. This first fund will be managed by Merak Capital.

The second one, managed by a consultancy firm named IMPACT46, will attempt to stimulate private sector investments in the Saudi Arabian gaming and esports industry. Their approximately US$40 million fund aims to attract companies and game studios to help them have a bigger presence in Saudi Arabia.

The timing of the funding announcement is critical as Saudi Arabia is set to hold the 2024 Esports World Cup, an evolution of a major esports tourney previously held in the country called the Gamers8 Cup.

Saudi Arabia Economy also reported that 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,” Engr. Al-Humaidi told Saudi Arabia Economy.