Saudi NDF And SDB To Establish $120 Million Venture Funds For Gaming, Esports

In a strategic move to enhance the gaming and Esports landscape, the National Development Fund (NDF) of Saudi Arabia, in partnership with the Social Development Bank (SDB), has unveiled plans for two venture funds totaling SAR450 million ($120 million). This announcement, made at the LEAP 2024 technology conference in Riyadh, signifies a robust effort to support the burgeoning gaming and Esports sector in the Kingdom. These initiatives fall under the Gaming and Esports Financing Program, in collaboration with the Saudi Esports Federation.

Merak Capital and IMPACT 46, the firms appointed to manage these funds, are tasked with providing development financing through equity investments. Their goal is to foster growth, promote local content creation, and magnify the industry's economic and social contributions. This aligns with the objectives of the National Gaming and Esports Strategy and the Digital Content Program (Ignite).

The first fund, managed by Merak Capital and valued at SAR300 million ($80 million), aims to launch a gaming accelerator. This initiative will drive growth and nurture local talent within the gaming sector, positioning Saudi companies as frontrunners in this dynamic industry. Meanwhile, IMPACT46 will oversee the second fund, worth SAR150 million ($40 million), focusing on stimulating private sector investment and attracting international firms to establish a stronger foothold in the Kingdom.

Dr. Stephen Grove, Governor of NDF, highlighted the global surge in the gaming and Esports industry's growth, noting its potential for generating revenue and creating jobs. With Saudi Arabia's youthful demographic and other attractive investment features, NDF and its partners are keen on offering innovative financing solutions to ensure the industry's financial sustainability and support the Kingdom's economic diversification and employment generation efforts.

Eng. Sultan Al-Humaidi, CEO of SDB, underscored SDB's dedication to propelling the gaming and e-sports industry forward within Saudi Arabia. The bank aims to nurture the sector towards self-sufficiency and establish the Kingdom as a global hub for gaming and Esports. This initiative is part of Saudi Arabia's broader digital transformation goals, which align with Saudi Vision 2030.

This development is part of NDF's broader strategy to cultivate promising sectors within Saudi Arabia, enhancing their contribution to the national economy. By providing empowerment and financial development support, NDF seeks to create an environment that attracts local talent, offers enriching experiences, and targets high-quality game production and development projects.

The National Development Fund was established on October 2, 2017, under the leadership of His Royal Highness Prince Mohammed bin Salman Al-Saud. Overseeing 12 development funds and banks, NDF is committed to driving economic transformation and sustainable development in Saudi Arabia. It focuses on promising investment sectors that align with the objectives of Saudi Vision 2030.

With inputs from SPA