Saudis bet big on gaming with $38 billion in long-term investment
Saudi Arabia has “a lot of patient capital” when it comes to developing its games industry, according to Prince Faisal bin Bandar Al Saud, the Chairman of the Saudi Esports Federation.
“A lot of people tell me we notice a lot of the investment you’re doing in esports, but we don’t see a lot of the investments you’re making in gaming,” Prince Faisal told Arabian Business Gulf Insights.
“It’s because to build a games industry takes five to 10 years.”
The kingdom, which is currently hosting the Esports World Cup in Riyadh with a record-breaking $71.5 million prize pool, has earmarked $38 billion from the Public Investment Fund for building out the industry via its homegrown Savvy Games Group.
Saudi Esports Cup to wrap up as business of gaming grows
After an eight-week gaming extravaganza, Saudi Arabia’s inaugural Esports World Cup at Riyadh’s Boulevard City will wrap up this weekend, with four final tournaments and a high-octane closing ceremony planned for Sunday night.
The champions of fighting game Tekken 8 will be crowned this evening, followed by finals for battle royale shooter PUBG, vehicular soccer hybrid Rocket League and racing game ESL R1 on Sunday.
The matches will conclude a marathon event that has featured 22 tournaments across 21 titles, with an estimated 2,500 gamers slogging it out for their share in the $60 million prize pool.
Hosting the biggest event in esports history has put Saudi Arabia front and center in the global gaming market. Crown Prince Mohammed bin Salman, a fan of the Call of Duty zombie military game, has earmarked $38 billion from the Public Investment Fund to help spur on the local industry, with the aim of attracting 250 gaming companies and studios to the kingdom.
While the competition wraps up, Saudi leadership will be turning their focus to the business end of gaming, with the New Global Sports Conference kicking off tomorrow.
More than 60 speakers and 1,200 delegates from the esports, gaming and entertainment industries will converge at Riyadh’s Four Seasons, with the kingdom’s plans to host the Olympic Esports Games from next year high on the agenda.
The Daily Circuit: Gamers head for Riyadh + Egypt courts European investors
👋 Hello from the Middle East!
Today in The Daily Circuit, we’re looking at the royal welcome Saudi Arabia is rolling out for next month’s Esports World Cup, Qatar Airways’ bid to own a 20% chunk of Virgin Australia, an English touch to the Trump golf resort taking shape in Oman and Sotheby’s plans for a Middle East “Hafla” this summer in London. But first, Egypt shows off its rebounding economy to investors from Europe.
Buttressed by more than $42 billion in property deals and loans since February, Egyptian President Abdel Fattah El-Sisi will be pulling out all the stops this weekend when he hosts a business summit catering to European leaders and investors.
At the peak of Egypt’s two-year financial crisis, trade with member-states of the European Union in 2023 slid 19% from the previous year – a benchmark El-Sisi will seek to reverse during the two-day Egypt-EU Investment Conference that starts on Saturday. As exports to Europe plunged almost 32% last year, Italy, Spain and Greece were the top European importers of Egyptian goods.
Joining the Egyptian President, cabinet members and Cairo business leaders at the Al Manara International Conference Centre will be European Commission President Ursula von der Leyen, along with government officials and investors from across the continent.
Egypt, coaxed by the International Monetary Fund, has embarked on a path of economic reform that includes divestment of billions in government assets and devaluation of the pound while implementing a fixed exchange rate. In turn the IMF and World Bank are arranging $8.7 billion in loans to help put the economy on course.
A breakthrough $35 billion property deal captured the attention of world investors in February as Abu Dhabi sovereign wealth fund ADQ led a group that bought development rights to Egypt’s Mediterranean coastal headland of Ras El-Hekma – soon to be dotted with luxury beach resorts.
Saudi Arabia is offering 90-day e-visas to Esports World Cup ticket holders as it gears up to host the debut competition that aims to put the kingdom on the international gaming map. Boulevard Riyadh City is the venue where more than 2,500 players will compete for a $60 million prize pool, the largest in esports history, from July 4 to Aug. 25.. Saudi Crown Prince Mohammed bin Salman, himself a “Call of Duty” fan, has earmarked $38 billion from the Public Investment Fund – with the aim of attracting 250 gaming companies and studios to set up shop in the country while creating 39,000 video game-related jobs. The homegrown strategy builds on the kingdom’s credentials in the e-arena with investments in the biggest players like Tencent, Nintendo, Activision Blizzard and Ubisoft. In March, Saudi Arabia’s National Development Fund and the Social Development Bank announced the establishment of two venture capital funds with a combined value of $120 million to back new esports companies in the kingdom.
STABLE CAPITAL
Fitch Ratings has affirmed Abu Dhabi’s rating at ‘AA’ with a stable outlook as the emirate’s government debt remains among the lowest the New York ratings agency has assessed. Sovereign net foreign assets, or its holdings abroad, are also among the highest, at 225% of GDP ($672 billion) at the end of 2023 and are up significantly compared to the previous year amid strong global stock markets. “We forecast Abu Dhabi will run fiscal surpluses of 5.4% of GDP in 2024 and 3.6% in 2025, after our estimate of 11% of GDP in 2023,” Fitch said. Oil production is also forecast to rise, in line with OPEC+’s June agreement to reach 3.375 million barrels per day by December 2025, which Fitch said was still well below Abu Dhabi’s stated production capacity of 4.85 million barrels per day. This will also partly offset lower Brent oil prices, which Fitch projects will average $70 per barrel in 2025 and $65 in 2026.
💲 Sovereign Circuit
Mubadala: Berlin-based insurance startup Wefox will replace CEO Mark Hartigan after the board rejected a proposal by Mubadala, its largest stakeholder, that he backed to sell the company, Bloomberg reported. The move comes as Abu Dhabi’s second-largest sovereign wealth fund takes a more active role in the start-ups it backed during the venture capital boom, as higher interest rates and profitability prospects have shelled the values of many once-high flying firms.
Qatar Investment Authority: Qatar Airways, which is wholly owned by the QIA, is in talks to acquire a 20% stake in Virgin Australia from Bain Capital, potentially providing entry into a market from which it was blocked last year, Bloomberg reports.
Kuwait Investment Authority: Kuwait’s sovereign wealth fund, which has more than $800 billion in assets under management, has decided to set up a representative office, its third international branch along with offices in London and Shanghai.
International Holding Co.: IHC, the $240 billion Abu Dhabi conglomerate led by Sheikh Tahnoon Bin Zayed, held its General Assembly Meeting last week, during which shareholders approved a AED 5 billion ($1.4 billion) share buyback program, representing 0.6% of the company’s total shares.
↪↩ Closing Circuit
⛽ Gas Pact: U.S. energy firm Sempra has signed a non-binding 20-year agreement with Saudi Aramco to supply 5 million tons of liquefied natural gas per year from its Port Arthur project in Texas.
💳 Pay Later: Confi, a Dubai-based fintech startup, secured a $5 million debt facility from an Abu Dhabi-based private family office to expand its “pay later” operations in the region.
💄 Natural Cosmetics: Saraya, a Japanese maker of natural cosmetics and sugar-free sweeteners, opened a $12 million factory in Egypt’s Suez Canal Economic Zone.
🩺 Aramco Med: Saudi Arabia’s Canadian Medical Center Co. signed a $4.4 million contract with Johns Hopkins Aramco Healthcare to operate nine clinics as part of an expansion plan.
🤒 Home Healthcare: Sensi.AI, an Israeli startup that uses artificial intelligence to make home health care more efficient, raised $31 million in a Series B financing round co-led by Zeev Ventures and Insight Partners.
🗣 Circuit Chatter
🌐 Data Acquisition: Abu Dhabi-based e& enterprise has taken ownership of Turkey’s GlassHouse, a provider of managed cloud, business continuity and data infrastructure services. Terms were not disclosed.
🌊 Gas Expansion: The partners in Israel’s offshore Leviathan gas field – Chevron, New Med Energy and Ratio Energies – said they will invest up to $500 million to expand its capacity after the government approved the export of more natural gas to boost the war-damaged economy.
⛳ Trump Resort: The Trump Organization agreed to partner with U.K.-based Dar Global to develop its $500 million golf resort and residential complex in Oman that is due to open in 2028.
🏦 Riyadh HQ: Mizuho Financial Group has become the latest Wall Street firm to comply with Saudi Arabia’s directive to foreign companies to set up their regional headquarters in the kingdom, Bloomberg reports.
🌍 Power Circuit
Sheikh Nahyan bin Mubarak, UAE Minister of Tolerance and Coexistence, presented degrees on Wednesday to 160 students graduating from the Abu Dhabi School of Management.
Sheikh Abdullah bin Zayed, UAE Minister of Foreign Affairs, received Syrian Foreign Minister Dr. Faisal Mekdad in Abu Dhabi on Wednesday. Over a working dinner, the pair discussed strengthening bilateral ties.
➿ On the Circuit
Razan Al Mubarak, President of the International Union for Conservation of Nature, was named Co-Chair of the Taskforce on Nature-Related Financial Disclosures on Wednesday. In 2011, she was the first woman to become Secretary-General of the Environment Agency – Abu Dhabi.
Josh Harris, Co-Founder of Apollo Global Management and a managing partner of the NBA’s Philadelphia 76ers, the NHL’s New Jersey Devils and the NFL’s Washington Commanders, notes the impact of Gulf sovereign wealth fund investment on the financial growth of American professional sports in an interview on Wednesday at Bloomberg Invest in New York.
Faisal Abbas, Editor-in-Chief of Arab News, signed copies of his new memoir “Anecdotes of an Arab Anglophile” at the Marylebone location of Daunt Books in London on Tuesday.
🎶 Culture Circuit
🎨 London Calling: As much of the Gulf population decamps to cooler climes for the summer, Sotheby’s London will play host to a month of events and exhibitions to celebrate Middle Eastern culture. “Hafla,” meaning celebration in Arabic, will feature a series of exhibitions and public events running from August 12-30 on Bond Street. Five handbags designed by Saudi Arabian Princess Nourah Al-Faisal will be among the highlights, alongside more than 50 artworks from 50 years of modern Saudi art.
📷 Photo of the Day
Ida Alkusay (2nd L), Ibrahim Al-Hasawi (2nd R) and Majed Z.Samman (1st R) attend Saudi Film Nights in Australia at Sydney Opera House on Wednesday. (Don Arnold/WireImage)
🗓️ Circuit Calendar
Saudi performers Ida Alkusay (2nd L), Ibrahim Al-Hasawi (2nd R) and Majed Z.Samman (1st R) attend Saudi Film Nights in Australia at Sydney Opera House on Wednesday. The Saudi Film Commission partnered with Australian production company Blacksand Pictures for two events in Sydney and Melbourne aimed at fostering collaboration between the Australian and Saudi film industries. (Photo: Don Arnold/WireImage via Getty)
🗓️ Ahead on The Circuit
June 26-30, Tan-Tan, Morocco: Tan-Tan Moussem Cultural Festival. Annual gathering held since 1963 by more than thirty tribes from southern Morocco, with participation from the UAE and other Middle East nations.
June 29-30, Cairo, Egypt: Egypt-EU Investment Conference. Business leaders and investors from Egypt and Europe engage around themes including green energy, nearshoring, digitization and tech startups. Al Manara International Conference Center.
July 1-3, Milan Italy: The Global Energy Transition Congress & Exhibition. An event bringing together thought leaders, innovators, and industry experts to address the challenges of accelerating the global energy transition. Milano Convention Centre.
July 10-11, Riyadh, Saudi Arabia: Global EV and Technology Forum. The inaugural summit in Saudi Arabia bringing together policymakers, companies and investors focused on sustainable urban mobility solutions. Riyadh International Convention & Exhibition Center.
July 15-26, Granada, Spain: ADIA Lab International Summer School. A course of lectures and case studies to explore the critical role of trust and safety in AI, examining the ethical, technical and societal implications of AI applications. University of Granada.
Aug. 12-15, Riyadh, Saudi Arabia: Saudi Food Expo. One of the kingdom’s largest trade shows for the food & beverage industry. Riyadh Front Exhibitions.
Saudi Arabia prepares to welcome thousands of gamers for Esports World Cup
Saudi Arabia is getting set to put its stamp on the global gaming market this summer when it hosts the Esports World Cup over eight weeks in July and August.
Boulevard Riyadh City will be the venue for the competition’s debut from July 4 to Aug. 25. More than 2,500 players are expected to compete for a $60 million prize pool, the largest in esports history.
German esports entrepreneur Ralf Reichert is CEO of the host organization, the Esports World Cup Foundation, a nonprofit established in 2023 and based in Riyadh.
Saudi Crown Prince Mohammed bin Salman, said to be a devotee of the Call of Duty zombie military game, has earmarked $38 billion from the Public Investment Fund – with the aim of attracting 250 gaming companies and studios while creating 39,000 video game-related jobs in the process.
The homegrown strategy builds on the kingdom’s credentials in the e-arena with investments in the biggest players like Tencent, Nintendo, Activision Blizzard and Ubisoft.
In March, Saudi Arabia’s National Development Fund and the Social Development Bank announced the establishment of two venture capital funds with a combined value of $120 million to back new esports companies in the kingdom.
One gaming executive who was attracted to the region is Will Dalio, the son of billionaire hedge funder Ray Dalio, who opened an outpost of his family office in Abu Dhabi last year.
The young Dalio is using Abu Dhabi as a market to grow his educational game-making company, Endless Studios.
