By 2030, Esports and gaming in Saudi Arabia could contribute US$13.3 billion (SAR 50 billion) to the Kingdom’s GDP and generate nearly 39,000 jobs according to the Kingdom’s National Gaming and Esports Strategy. This is highlighted in PwC Middle East’s latest report, in collaboration with the Saudi Esports Federation, titled ‘Centre of the game: KSA emerges as a significant player in global Esports market’ that highlights Saudi Arabia’s efforts in developing an entire Esports value chain, creating new career and business opportunities to make the Kingdom a hub for Esports by 2030.
The global Esports industry has experienced significant growth in recent years and is currently valued at over US$1.4 billion. It is projected to reach US$1.86 billion by next year, with revenues from various streams, such as media rights, sponsorships, advertising, merchandise, tickets, and game publisher fees.
Turki Alfawzan, Chief Executive Officer at Saudi Esports Federation said: “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. 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.”
In the Middle East, there is significant interest in the Esports industry, with governments and private entities investing in Esports infrastructure, including gaming zones, arenas, and global tournaments. Gaming revenues in the Middle East and Africa were approximately US$7.2 billion in 2023, with Saudi Arabia emerging as a significant player in this growth.The Kingdom is home to 23.5 million gaming enthusiasts, which accounts for 67% of its population. Additionally, nearly 1,000 players are pursuing Esports as full-time careers in the Kingdom.
Abdulrahman Kanafani, Consulting Partner from PwC Middle East, said: “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. It’s now not just a source of entertainment; it has evolved into a cultural and economic force that has led to the emergence of professional players, teams, leagues, and substantial cash prizes. Given Saudi Arabia’s strategic focus on youth engagement and talent development, the country is well positioned to take advantage of this growing momentum in the Esports industry.”
In 2022, the Kingdom unveiled its National Gaming and Esports Sector Strategy[1] with the intention of nurturing an attractive and competitive ecosystem for Esports. This is in line with Vision 2030’s objectives to diversify the Saudi economy. The Saudi Esports Federation (SEF) has been leading the way in the Kingdom’s efforts to develop the Esports sector, aiming to nurture the industry and establish Saudi Arabia as the global hub of Esports.
However, despite its rapid growth, the global Esports sector faces challenges, including issues with monetisation, such as ticket sales, merchandise, and broadcast rights. There are also challenges on the technological front, including a competitive hardware market, rapid advancements in technology, diverse consumer preferences and trends, compatibility, and a lack of regulatory norms.
Nevertheless, the outlook for growth in the region remains positive, with Saudi continuing with its efforts to maintain the sector’s upward trajectory. For instance, Qiddiya City in Saudi Arabia has unveiled plans for the world’s first comprehensive gaming and Esports district, designed to attract an expected 10 million visitors annually[2].
As the Kingdom lays the groundwork for a thriving Esports ecosystem, maintaining momentum is crucial to achieve its vision for becoming a premier Esports destination on the world stage.
Read the full report here
