In a move to support the burgeoning gaming and esports industry in Saudi Arabia, the National Development Fund (NDF) announced a partnership with the Social Development Bank (SDB) to establish two venture funds totaling $120 million. The announcement, made during the LEAP 2024 technology conference in Riyadh, marks a significant step towards fostering the growth of this dynamic sector.
This initiative aligns with the Gaming and Esports Financing Program, a collaborative effort between the NDF, SDB, and the Saudi Esports Federation. The program aims to position Saudi companies as leaders in the global gaming and esports landscape.
The partnership will establish two distinct venture funds, each catering to specific aspects of the industry's growth:
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The first fund, with a value of $80 million, will be managed by the Saudi Venture Capital Company (SVC). This fund will focus on directly investing in promising Saudi gaming and esports companies with high-growth potential. By providing them with necessary capital, the fund aims to empower these companies to scale their operations, develop innovative products, and compete on a global stage.
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The second fund, valued at $40 million, will be managed by IMPACT46. This fund will primarily target attracting international firms and studios to establish a presence in Saudi Arabia. By offering investment opportunities and fostering a supportive business environment, the fund seeks to create a robust ecosystem for the domestic gaming and esports industry. This, in turn, is expected to stimulate private sector investment within the Kingdom and contribute to the creation of high-skilled jobs.
The NDF's partnership with the SDB signifies a strategic commitment by the Saudi Arabian government to accelerate the development of the gaming and esports industry. This investment is expected to not only bolster the domestic gaming scene but also position Saudi Arabia as a key player in the global esports landscape. The initiative aligns with the country's Vision 2030, a comprehensive plan for economic diversification and social transformation.