By Sagar V. Mankar In a bold move, Saudi Arabia has announced the establishment of two venture funds worth a staggering $120 million in collaboration with the Social Development Bank (SDB) at the LEAP tech conference in Riyadh.
This initiative is part of the country’s Gaming and Esports Financing Programme, aimed at accelerating growth and amplifying the industry’s economic and social impact.
What’s in the Funds?
The first investment fund, managed by Merak Capital, will have a total size of $80 million.
- Its primary focus is to create a gaming accelerator backed by venture investment, positioning Saudi companies as leaders in the Esports sector.
- It will provide funds, mentorships, and networking opportunities for local businesses to accelerate their gaming development.
The second fund, under the management of consulting firm IMPACT46, is valued at $40 million.
- This fund aims to attract private sector investment in the local gaming and Esports industry, attracting firms and studios to establish a more significant presence in the country.
- This fund is basically for foreign gaming companies who looking for expansion in the country.
Saudi Arabia Investing Heavily in Esports
With a young prince at the helm, Saudi Arabia is determined to expand its economy and make a splash in the lucrative global Esports market.
Saudi Arabia is strategically positioning itself as a major player in this rapidly growing industry, leveraging its young demographic and favorable investment conditions.
The country is developing top-tier global competitions like the Esports World Cup and heavily investing in the Esports sector.
Source: Lucidity Insights