Saudi Arabia’s rapidly expanding esports sector is set to significantly impact the Kingdom’s economy, with projections indicating a contribution of $13.3 billion (SR50 billion) to GDP and the creation of nearly 39,000 jobs by 2030, according to the National Gaming and Esports Strategy.
A report by PwC Middle East, in partnership with the Saudi Esports Federation, titled “Centre of the Game: KSA Emerges as a Significant Player in Global Esports Market,” outlines the Kingdom’s comprehensive efforts to build an entire esports value chain. These efforts aim to create new career and business opportunities, positioning Saudi Arabia as a global hub for esports by the end of the decade.
The global esports industry has seen tremendous growth, currently valued at over $1.4 billion, with expectations to reach $1.86 billion next year. Revenue streams include media rights, sponsorships, advertising, merchandise, ticket sales, and game publisher fees.
Saudi Arabia’s Role in Esports
Turki Alfawzan, CEO of the Saudi Esports Federation, emphasized the Kingdom’s commitment to innovation and youth empowerment through esports. “As we look to the future, the esports sector stands as a testament to Saudi Arabia’s commitment to innovation and youth empowerment. Through strategic investments and a dedicated focus on talent development, we are building an ecosystem that positions the Kingdom as a global leader in esports,” he said.
Alfawzan highlighted that esports is becoming a key pillar in the Kingdom’s economic diversification efforts under Vision 2030. “This report underscores the potential of esports not only as a thriving industry but as a key pillar in our economic diversification efforts under Vision 2030. We are excited to continue this journey, fostering a vibrant community that drives creativity, engagement, and excellence on the world stage,” he added.
The Middle East, including Saudi Arabia, has shown significant interest in the esports industry, with investments in gaming infrastructure such as arenas, gaming zones, and global tournaments. In 2023, gaming revenues in the Middle East and Africa were approximately $7.2 billion, with Saudi Arabia playing a crucial role in this growth.
With 23.5 million gaming enthusiasts—representing 67% of the population—and nearly 1,000 professional esports players, Saudi Arabia is becoming a central player in the esports world.
Abdulrahman Kanafani, Consulting Partner at PwC Middle East, noted the favorable environment for esports growth in the region, stating, “The high levels of mobile and digital penetration, a large youth population, as well as active support from the governments in the Middle East has created a favourable environment for the growth of esports in the region.”
Challenges and Future Prospects
Despite the industry’s rapid growth, the global esports sector faces challenges, including monetization issues related to ticket sales, merchandise, and broadcast rights. Technological challenges also persist, with competition in the hardware market, rapid technological advancements, and varying consumer preferences.
However, the future looks promising, with Saudi Arabia committed to maintaining the sector’s momentum. Initiatives like the planned comprehensive gaming and esports district in Qiddiya City, expected to attract 10 million visitors annually, underline the Kingdom’s dedication to becoming a premier esports destination globally.