PIF is reshaping the global gaming economy

By: Mamdoh Almalki

In an unprecedented development, the Kingdom is strengthening its position as a major player in an emerging digital economy taking shape at the intersection of entertainment and technology. Riyadh is hosting the world’s largest e-sports tournament, the second edition of the e-Sports World Cup, scheduled for 2025. The prize pool is $70 million (SAR 262.5 million), distributed across four main tracks: club championships, gaming competitions, qualifiers, and best player awards.

The Kingdom is leading this wave through its investment arm, the Public Investment Fund, which has pumped more than SAR 142 billion (SAR 38 billion) into the sector through its subsidiary, Savvy. This has made it one of the largest investors in gaming globally, with significant acquisitions including ESL FACEIT Group, the world’s largest e-sports company, and the American company Scopely, ranked among the top 20 game developers globally, along with significant stakes in giant companies such as Nintendo, Activision, and Electronic Arts. These investments are part of the implementation of the National Strategy for Gaming and Esports, launched by His Royal Highness Crown Prince Mohammed bin Salman in 2022. The strategy aims to transform the Kingdom into a global hub hosting more than 250 gaming companies, creating 39,000 jobs, and contributing $13.3 billion to the GDP by 2030.

The Saudi market represents the largest gaming base in the Middle East, with approximately 23 million gamers representing 67% of the population, according to data from Savvy. This makes it the largest market in the Middle East and one of the fastest-growing markets globally.

The vision extends beyond consumption to include localization and development. Savvy announced the establishment of the first dedicated business unit to support local game developers, along with incentives for foreign investors and training initiatives in cooperation with government agencies.

At the heart of this strategy are projects such as the Qiddiya Gaming Hub, which aims to attract 10 million visitors annually and provide infrastructure for world-class game development and publishing, supported by the largest expansion of data centers in the region to ensure highly efficient local hosting. With the Kingdom hosting the eSports World Cup and the eSports Olympics, its position as the global capital of eSports is deepening, amid growing interest from major publishing houses and developers to open branches and centers within the Kingdom. This growing interest reflects the Kingdom’s role as an integrated economic platform that goes beyond consumption to build a knowledge and technology production system that stimulates innovation, creates jobs, and supports the diversification of the national economy. By empowering entrepreneurs, attracting foreign investment, and localizing supply chains in the gaming sector, it strengthens its position as a regional driver of digital transformation and technological innovation, keeping pace with the transformations of the 21st century and presenting a new model that combines entertainment, economy, and technology under the umbrella of Saudi Vision 2030.