Saudi Arabia’s National Development Fund (NDF) and the Social Development Bank (SDB) are teaming up to establish two venture capital funds worth $120 million to support the gaming and esports industries in the kingdom. The initiative, called the Gaming and Esports Financing Programme, was announced during the LEAP 2024 event and is in partnership with the Saudi Esports Federation.
Boosting Local Content Production
The two funds, managed by IMPACT46 and Merak Capital, will provide equity investments to gaming and esports companies to accelerate their development and promote local content production. The goal is to drive growth in the industry.
Press Release:
In a groundbreaking move to strengthen the gaming and esports industry in Saudi Arabia, the National Development Fund (NDF) has partnered with the Social Development Bank (SDB) to establish two venture funds worth SAR450 million ($120 million). The announcement was made during the LEAP 2024 technology conference in Riyadh, marking a significant milestone in the development of the thriving gaming and esports sectors.
The Gaming and Esports Financing Programme, in collaboration with the Saudi Esports Federation, aims to provide development funding to gaming and esports companies through equity investments. Merak Capital and IMPACT46 will manage the funds, working towards enhancing local content development, speeding up growth, and maximizing the economic and social impact of the industry. The program aligns with the objectives of the National Gaming and Esports Strategy and the Digital Content Program (Ignite).
Merak Capital will manage the first investment fund, worth SAR300 million ($80 million). This fund will focus on establishing a gaming accelerator supported by venture investment to drive growth and nurture local talent in the gaming industry. The aim is to position Saudi companies as leaders in this dynamic sector.
The second fund, managed by IMPACT46 with a value of SAR150 million ($40 million), aims to stimulate private sector investment in the local gaming and esports industry. It also aims to attract international firms and studios to establish a stronger presence in Saudi Arabia and enrich the industry’s ecosystem.
Supporting the Growing Industry
Dr. Stephen Grove, Governor of NDF, stated, “The gaming and esports industry has experienced tremendous global growth, generating significant revenue and job opportunities. With Saudi Arabia’s young population and attractive investment factors, NDF and our partners are prioritizing innovative financing solutions for this industry. We aim to ensure its financial sustainability and contribute to the diversification of the kingdom’s economy and job creation efforts.”
Eng. Sultan Al-Humaidi, CEO of SDB, emphasized the bank’s commitment to supporting the gaming and esports industry, recognizing its potential for growth in Saudi Arabia. He said, “Our objective is to develop the industry to become self-sufficient and position the kingdom as a global hub. We provide the necessary support to ensure the success of this venture, advancing the Saudi digital economy as a key component of Saudi Vision 2030.”
This initiative is part of NDF’s efforts to develop promising sectors in Saudi Arabia and enhance their contribution to the national economy. By empowering and providing financial support, the aim is to create an environment that attracts local talent, delivers exciting experiences, and focuses on top-tier game production and development projects.
Source: Nico Partners / wamda.com