Just last year, Saudi Arabia invested $3.3 billion in EA, Take-Two and Activision Blizzard. In doing so, the country demonstrated a strong interest in the gaming and esports industry. Indeed, this year the Saudi-owned Savvy Gaming Group also bought ESL and FACEIT for $1.5 billion. So, it comes as no surprise that the country is projecting that esports will be playing a larger role in the economy going forward.
Let’s take a look at how esports will boost the economy of Saudi Arabia between now and 2030. Consider visiting VGR.com to learn more about esports industry developments like this one.
How the Economy of Saudi Arabia Will Benefit from the Esports Strategy
Earlier this month, the Saudi Press Agency (SPA) reported that Crown Prince Mohammed bin Salman announced a National Gaming and Esports Strategy. The multifaceted plan will fuel the growth of esports and gaming in the country by improving regulations, hosting competitions, developing new games, and more. In total, the plan includes 86 initiatives.
Indeed, you may have followed the international esports tournament the country hosted in Riyadh starting in July this year. That event featured players facing off in DOTA 2, Rocket League, Fortnite, Tom Clancy’s Rainbow Six Siege, and PUBG Mobile. With $15 in the prize pool, there was a lot at stake for competitors. The tournament was a glowing success, and a sign of things to come in Saudi Arabia.
The country has set ambitious goals. By 2030, Saudi Arabia hopes that its domestic studios will have developed over 30 games. The country also wants more of its citizens to go into esports. The goal is that it might eventually be in the top three in terms of having the most domestic players.
Just how much will these initiatives contribute to the economy of Saudi Arabia? The Crown Prince expects them to increase the country’s GDP by 50 billion riyals. This is equivalent to $13.3 billion USD. Additionally, the initiatives will result in around 39,000 jobs.
This is great to read at a time when a lot of jobs are in danger from the rise of AI. While AI may be able to replace a lot of workers, watching AIs face off in video games could never compete with watching real human players face off. Investing heavily in the esports industry makes a lot of sense in the current global economic and technological climate.
A Growing Percentage of Saudi Esports Players are Female
Speaking of new jobs for esports players in Saudi Arabia, it is interesting to note that female players account for a large chunk of gamers in the country. Speaking to Arab News, Haya Al-Qadi, marketing manager with esports and gaming organization Galaxy Racer, said, “Today it’s different because people don’t realize that there are more female mobile gamers than men and there’s a 50-50 split between console and PC gamers. There’s no excuse that there aren’t enough tournaments for women, especially when it’s a mental game. Here in the MENA (Middle East and North Africa) region, and even in North America, it’s still quite a taboo.” The article also references Ghada Al-Moqbel, CEO of GCON, stating that women account for 46% of all gamers in Saudi Arabia.
The growing role of women in gaming and esports is not just the case in Saudi Arabia, but around the world. It only takes a quick visit to a popular gaming forum to realize just how many women are passionate about gaming.
Given that is the case, it seems like Saudi Arabia would do well to make at least some of its initiatives for the next decade female-centric. Such initiatives could include the foundation of gaming leagues for women as well as competitions that are women-only. Such organizations and events could help provide safe spaces for female Saudi gamers. Doing so may go a long way toward providing the country with the economic boost it is looking for through esports and video games.
The Global Growth of Esports
To put Saudi Arabia’s initiatives in some global context, Straits Research is projecting that by 2030, the total esports market size worldwide will be worth $5.74 billion USD. That represents a CAGR of 21.9%. This report suggests that the largest chunk of the market will belong to the Asia-Pacific region. So, Saudi Arabia faces some steep global competition.
COVID-19 gave the esports industry a major boost. While traditional sports were canceled, sports fans and bettors alike needed something to follow. Esports competitions filled in the gap. But even with traditional sports back in action, interest in esports has not waned. Many people around the world ended up discovering something about which they are passionate.
It will be exciting to see how esports continues to grow as we move toward 2030, and how countries like Saudi Arabia leverage this industry to inject new life into their economies.