DUBAI, United Arab Emirates. Saudi Arabia is taking substantial steps to become a major player in the global gaming industry, investing billions of dollars to establish itself as a gaming hub by 2030. The Saudi sovereign wealth fund allocated nearly $40 billion to create a conglomerate focused on games and esports. In pursuit of this goal, the fund has become the largest outside investor in Nintendo and recently hosted a major gaming tournament with a record $45 million prize pool.
This ambitious move into the gaming sector has drawn comparisons to the kingdom’s previous forays into soccer and golf, with critics accusing Saudi Arabia of “sportswashing” human rights abuses, including the 2018 killing of journalist Jamal Khashoggi.
Despite the massive potential of the gaming industry, the kingdom’s entry into this arena has been met with resistance from some fans and gaming communities. Riot Games and Blast Premier canceled partnerships with Saudi Arabia in 2020 due to fan outcry. Team Liquid, an esports organization, pledged to donate half of its winnings from Saudi Arabian and UAE competitions to an organization helping LGBTQ+ individuals escape persecution, acknowledging the ethical challenges of accepting sponsorship from countries with controversial human rights records.
Saudi Arabia’s Crown Prince Mohammed bin Salman, reportedly an avid gamer himself, views this gaming initiative as part of Vision 2030, aimed at diversifying the economy, reducing oil dependence, and providing opportunities for the country’s young population.
The gaming industry, estimated to generate $184.4 billion in revenues in 2022, has a global reach with millions of fans, celebrity players, and corporate sponsors. Saudi Arabia’s Gulf neighbors, such as Dubai and Qatar, are also showing interest in esports and gaming, further fueling the region’s involvement in the gaming world.
However, the increasing involvement of autocratic Gulf states in the gaming industry has sparked debates within the community, with concerns about human rights issues and ethical dilemmas associated with accepting sponsorships from such countries.
As Saudi Arabia aims to position itself as a global gaming powerhouse, it remains to be seen how the industry and gaming community will navigate these complexities and the potential impact on its reputation and fanbase.
Carlo Juancho FuntanillaFrontend Developer, WordPress, Shopify
Contributing Editor
AMA ACLC San Pablo
