RIYADH: The booming video game industry in Saudi Arabia is expected to play a crucial role in materializing the economic diversification goals of the Kingdom by the end of this decade, according to experts.
Speaking to Arab News, Povilas Joniskis, managing director and partner at Boston Consulting Group, said that the gaming industry is steadily evolving in Saudi Arabia, with the Kingdom’s young population considering it an effective social communication tool.
The comments from Joniskis support the Kingdom’s National Gaming and Esports Strategy, which aims to ensure the sector creates jobs and contributes $13 billion to the country’s gross domestic product.
“Vision 2030’s economic diversification aims to unlock potential beyond oil and gas with a broad array of growing industry sectors. The gaming industry is rapidly emerging as one of them. The sector shows strong long-term potential, currently positioned as one of the largest entertainment verticals globally, second only to video and TV streaming services,” said Joniskis.
He added: “Saudi Arabia’s gaming market benefits from both demand and supply advantages. On the demand side, a young, vibrant population — predominantly under 35 — views gaming not just as entertainment but as a key social interaction platform.”
In July, a report released by US-based online gaming platform Mobile Premier League revealed that Saudi Arabia has secured the second-highest global ranking for average daily time spent playing video games.
Joniskis added that the video gaming industry in Saudi Arabia will create a multiplier effect across the broader economy, as it will attract global developers to come and invest in the Kingdom’s gaming sector, as well as create opportunities for local talent.
Federico Pienovi, chief business officer and CEO for Asia Pacific and Middle East and North Africa at Globant, echoed similar views and said the video game sector is creating new jobs in technology and creative fields while broadening the Kingdom’s entertainment landscape beyond traditional offerings.
“The growth of the video game industry is being integrated into major development projects like NEOM and Qiddiya, which aim to establish entertainment and cultural hubs in the region. Globant’s Games Studio is one of the companies working in this growing market, collaborating with Saudi giga-projects through their expertise in AAA game development and immersive experiences,” Pienovi told Arab News.
In November, Globant inked a deal with Qiddiya Investment Co. — fully owned by the Public Investment Fund — to turn Qiddiya City into an immersive hub for entertainment, sports, and culture.
Under the deal, Globant will work with QIC to develop the “PLAY LIFE Connected Experience,” a digital ecosystem designed to transform how visitors and residents interact with the destination’s wide range of offerings.
Pienovi added his firm is investing in gaming infrastructure and talent development, fostering both international partnerships and local initiatives as part of its strategy to become a key player in the global gaming market, as outlined in Vision 2030.
Soham Thacker, founder and CEO of esports gaming platform Gamerji, said that has been making long strides in promoting gaming and esports by conducting events like the Esports World Cup, Next World Conference and Gamers8.
“Saudi Arabia has successfully put itself as the epicenter of the video game industry. These events along with the upcoming Esports Olympics to be held in the region will boost the tourism as well as economic development of the country,” said Thacker.
Factors driving Saudi Arabia’s video game industry
Joniskis said that Saudi Arabia’s predominantly young population, with a majority under 35 years old, has embraced gaming as a primary form of entertainment and socializing, and it is driving the growth of the industry in the Kingdom.
The BCG official added that high disposable income among Saudi citizens also plays a crucial role, enabling access to premium gaming devices and extensive leisure time for entertainment pursuits.
“This purchasing power translates directly into enhanced gaming experiences through top-tier hardware,” said Joniskis.
He added: “Equally significant is the Kingdom’s robust technical infrastructure. Despite Saudi Arabia’s vast territory, the country maintains impressive network performance with CST reports showing low latency rates under 40ms across major titles including League of Legends, ML:BB, Call of Duty on both PC and mobile platforms, and PUBG Mobile.”
Pienovi said that high smartphone penetration rates and widespread access to high-speed internet have made mobile and online gaming easily accessible across the Kingdom.
“This infrastructure has helped establish gaming as a mainstream activity, supported by growing interest in esports tournaments, social media gaming communities, and live streaming platforms.
The cultural shift toward digital entertainment has been complemented by Vision 2030’s focus on expanding the entertainment sector,” said Pienovi.
Can Saudi Arabia become a global video game hub?
According to experts who spoke with Arab News, Saudi Arabia’s target to become a global video game hub by the end of this decade is an achievable goal thanks to the Kingdom’s National Gaming Strategy.
“Saudi Arabia’s ambition to become a global gaming hub, while bold, appears achievable through its unprecedented National Gaming Strategy. This coordinated approach ensures orchestrated delivery across various stakeholders and entities, setting a new standard for industry development,” said Joniskis.
The BCG official added that the Kingdom has aligned key market elements: strong local demand coupled with strategic initiatives, which include targeted incentive packages for global companies and talent, strategic investments through PIF and Savvy, and major infrastructure developments like Qiddiya and NEOM.
Thacker also underscored the pivotal role being played by PIF to turn the Kingdom into a global gaming destination by the end of this decade.
FAST FACT
Saudi Arabia’s predominantly young population, with a majority under 35 years old, has embraced gaming as a primary form of entertainment and socializing, and it is driving the growth of the industry in the Kingdom.
“Most of the gaming companies have the PIF as either their partner or an investor. Hence, it is very clear that the country aims to be the hub of the gaming industry and with the millions of dollars spent on events and tournaments in the region, Saudi Arabia is definitely poised to be the hub of gaming in the next few years,” said the Gamerji founder.
In January, Saudi Arabia’s sovereign wealth fund strengthened its investment in the video gaming sector by increasing its stake in Japan-based Koei Techmo from 5.56 percent to 6.6 percent.
Koei Tecmo is known for developing several popular video games including Nobunaga’s Ambition, Dynasty Warriors, Atelier, and Ninja Gaiden.
In 2023, PIF also raised its stake in Nintendo to 8.26 percent, making it the largest outside investor in the Japanese gaming company.
Nintendo is one of the most prominent names in the global video games industry, with a portfolio of titles including Pokemon, The Legend of Zelda, and Mario.
The role of Savvy Games
It was in September 2022 that Saudi Arabia’s Crown Prince Mohammed bin Salman launched the Savvy Games Group’s strategy, with an investment budget of $37.7 billion.
Savvy is currently accelerating talent in the Kingdom and catalyzing Saudi Arabia’s unique geographical location to build the dominant global hub for games and esports.
“Savvy Games, backed by the PIF, represents a significant step in developing Saudi Arabia’s gaming industry. With $38 billion allocated for investments, the initiative aims to attract international developers and publishers to establish local operations,” said Pienovi.
He added: “This substantial funding could accelerate industry growth by enabling partnerships between international gaming companies and local institutions. The investment strategy focuses on building technical capabilities, fostering innovation, and developing gaming infrastructure that aligns with global
industry standards.”
Echoing similar views, Joniskis told Arab News that Savvy Games has rapidly ascended to become one of the top 10 gaming companies globally by revenue, marking Saudi Arabia’s emergence in the global gaming industry.
The BCG official added that Savvy is strategically localizing game development activities within Saudi Arabia, creating opportunities for domestic talent.
“Through strategic acquisitions — ESL, FaceIt, and Vindex — Savvy has established itself as a global esports leader. Partnerships with industry leaders like Niantic and XSolla are strengthening the regional ecosystem through talent academies and incubators, supporting global companies’ regional expansion,” said Joniskis.
Areas of improvement
Joniskis also highlighted some of the areas that could be strengthened to accelerate the growth of Saudi Arabia as a global gaming destination.
“The Kingdom can strengthen its position by aligning game production incentives with established hubs like Montreal, Austin, and others, enhancing cost competitiveness to attract global developers and investment,” said Joniskis.
He added: “Education represents another crucial focus area. Expanding beyond traditional degree programs to include vocational training would create more accessible pathways for existing talent to enter the gaming industry. This comprehensive approach to talent development supports both immediate and long-term industry needs.”
For his part, Pienovi said that Saudi Arabia’s gaming presence requires a multi-faceted approach focusing on sustainable growth and innovation.
The Globant official also underscored the vitality of cultivating local talent through specialized education programs and strategic partnerships with global technology leaders.
“Innovation zones and dedicated gaming districts could serve as catalysts for industry growth, providing spaces where technology companies, startups, and creative talent can collaborate. This infrastructure development needs to be complemented by investment in competitive gaming facilities and events that can attract international attention,” added Pienovi.
