Riyadh, March 05, 2024, In a groundbreaking initiative aimed at fortifying the gaming and Esports landscape in Saudi Arabia, the National Development Fund (NDF), in partnership with the Social Development Bank (SDB), unveiled the signing of two pivotal agreements to establish venture funds totaling SAR 450 million ($120 million). This milestone announcement, unveiled during the LEAP 2024 technology conference in Riyadh, represents a significant leap forward in nurturing the burgeoning gaming and Esports sector.
As part of the Gaming and Esports Financing Program in collaboration with the Saudi Esports Federation, Merak Capital and IMPACT 46 have been entrusted with managing the two funds. These funds are designed to offer developmental financing to gaming and Esports enterprises through equity investments, fostering rapid expansion, promoting local content creation, and amplifying the industry's economic and social influence in line with the National Gaming and Esports Strategy and the Digital Content Program (Ignite).
Merak Capital will oversee the first investment fund, valued at SAR 300 million ($80 million). This fund will focus on establishing a gaming accelerator program supported by venture investments, aimed at fueling growth and nurturing local talent to position Saudi companies as frontrunners in the dynamic gaming sector.
The second fund, managed by IMPACT46 and valued at SAR 150 million ($40 million), aims to catalyze private sector investment in the domestic gaming and Esports domain. Additionally, it aims to attract international firms and studios to establish a robust presence in the Kingdom, further enriching the ecosystem of the sector.
Dr. Stephen Grove, Governor of NDF, underscored the significance of this initiative, stating, "The gaming and Esports industry has witnessed exponential growth worldwide, presenting significant revenue streams and employment opportunities. Leveraging Saudi Arabia's youthful demographic and other appealing investment factors, NDF and our partners are prioritizing innovative financing mechanisms for this sector, aiming to ensure its long-term financial sustainability and contribute to the Kingdom's economic diversification and job creation endeavors."
Eng. Sultan Al-Humaidi, CEO of SDB, reiterated the bank's commitment to nurturing the gaming and Esports sector, recognizing its potential for expansion within the Kingdom. "Our objective is to nurture the industry towards self-sufficiency, positioning Saudi Arabia as a global hub. We are providing the necessary support to ensure the success of this venture, driving the Saudi digital economy forward as a pivotal element of the Kingdom's digital transformation aspirations aligned with Saudi Vision 2030."
This initiative is part of NDF's ongoing efforts to foster promising sectors within Saudi Arabia and bolster their contributions to the national economy. Through empowerment and financial support for development, NDF aims to cultivate an environment that attracts local talent, fosters promising experiences, and targets high-caliber game production and development projects.
About the National Development Fund:
Established on October 2, 2017, under the auspices of His Royal Highness Prince Mohammed bin Salman Al-Saud, Crown Prince and Prime Minister, the NDF is dedicated to propelling the Kingdom's economic transformation and sustainable development. Overseeing 12 development funds and banks, NDF endeavors to enhance performance, promote coordination, and amplify economic and social impacts, with a focus on promising investment sectors aligned with the objectives of Saudi Vision 2030.
