Saudi Arabia has announced the establishment of a $120 million investment fund for esports and video games during the LEAP 2024 technology conference in Riyadh.
This initiative, led by the National Development Fund (NDF) in collaboration with the Social Development Bank (SDB), aims to accelerate the growth and expand the economic and social impact of the industry.
Objectives of the Investment Funds
The newly created funds are part of the Esports and Video Games Financing Program, designed to provide capital investments to companies in the sector. The primary objectives include:
- Accelerating the growth of the esports and video game industry.
- Expanding the economic and social impact of the sector.
- Positioning Saudi Arabian companies as leaders in the global gaming market.
Breakdown of the Investment Funds
- Merak Capital Fund ($80M): Managed by Merak Capital, this fund will focus on establishing a gaming accelerator to nurture Saudi Arabian companies and enhance their competitiveness in the sector.
- IMPACT46 Fund ($40M): Managed by IMPACT46, this fund aims to stimulate private sector investment in the local video game and esports industry. It seeks to attract companies and studios to establish a stronger presence in Saudi Arabia.
Saudi Arabia’s Role in Esports
In recent years, Saudi Arabia has emerged as a prominent player in the esports industry, hosting world-class competitions like the Esports World Cup and making significant investments despite economic challenges dubbed as the “esports winter.”
Dr. Stephen Grove’s Statement
Dr. Stephen Grove, Governor of the NDF, highlighted the significance of innovative financing solutions for the esports and video game industry, aiming to ensure its financial sustainability and contribute to economic diversification and job creation efforts in the Kingdom.
Conclusion
The exponential growth of the esports and video game industry worldwide presents significant economic opportunities, particularly in regions with a young demographic like Saudi Arabia.
The establishment of these investment funds reflects Saudi Arabia’s commitment to fostering innovation, economic diversification, and job creation in the burgeoning esports and gaming sector.
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