Game on KSA

By Jawad Shaikh

Gaming is no longer just entertainment; it is a booming global industry with significant cultural and economic impact. Saudi Arabia, under the Vision 2030 framework, has recognized this opportunity, setting ambitious goals to establish itself as a global gaming hub. With a large and engaged gamer base, KSA is uniquely positioned to lead the MENA region and become a global force in the gaming industry. However, realizing this vision requires overcoming value leakage, fostering local talent, and building a sustainable gaming ecosystem.

Global Gaming Market Dynamics

The gaming industry has become a key segment of the global digital economy. Across mobile, console, and PC platforms, the market reached $184 billion in 2023 and is projected to grow to $207 billion by 2026, driven by innovation and growing gamer engagement.

The MENA gaming market is growing at a CAGR of 6.5%, supported by rising disposable income and increased internet penetration.

Saudi Arabia leads the region with a gaming market valued at $1 billion and a highly engaged community of over 23 million gamers. On average, users spend 80 hours per month gaming.

Despite this robust foundation, Saudi Arabia retains only a fraction of the value generated, with much of it captured by global publishers, app stores, and streaming platforms. This leakage underscores the need for strategic interventions to localize value creation.

The Saudi government has made significant strides in building a thriving gaming ecosystem, with major investments and initiatives aimed at creating a self-sustained industry.

Massive Investment: Backed by the Public Investment Fund (PIF), SGG has pledged $38 billion to develop gaming and esports – the initiative aims to create 250 gaming firms and generate over 39,000 jobs, ensuring a robust pipeline of opportunities for local talent.

Prestigious Events: Saudi Arabia has hosted high-profile events like Gamers8 and is preparing to host the Esports World Cup and Olympic Esports Games in 2025 – d these events have positioned the Kingdom as a global leader in esports and a destination for competitive gaming.

While KSA has made impressive progress, critical challenges remain that must be addressed to realize its gaming ambitions.

• Economic Outflow: Significant revenue flows to global publishers (e.g., Tencent, Riot Games), app stores (e.g., Google Play, Apple), and streaming platforms (e.g., Twitch, YouTube).
• GDP Impact: Limited local ownership of gaming revenues reduces the sector’s contribution to GDP and job creation.
• Skills Gap: A lack of specialized training programs and expertise in game development and design hinders the growth of local talent.
• R&D Deficit: Minimal investment in research and development limits innovation and local game production.
• Regulatory Barriers: Attracting international publishers and developers is hampered by regulatory uncertainty and the need for targeted incentives.

Saudi Arabia can draw inspiration from successful gaming ecosystems, such as Abu Dhabi, which has built a vibrant industry through targeted interventions.

• Yas Creative Hub serves as a center for game studios, entertainment firms, and digital creatives.
• Events like Comic Craze and the Middle East Film & Comic Con have fostered cultural enthusiasm, driving gamer engagement.
• Specialized programs in game design and development have nurtured local talent, ensuring a sustainable pipeline of skilled professionals.

Saudi Arabia can adopt these strategies to accelerate its transformation into a gaming powerhouse.

A Roadmap for Saudi Arabia’s Gaming Future

To build a world-class gaming ecosystem, Saudi Arabia must focus on several key priorities:

• Introduce specialized training programs targeting middle schoolers, high school students, and university graduates.
• Foster diversity through initiatives like Women in Game Development.
• Invest in local publishing houses, app stores, and streaming platforms to retain a greater share of revenues.
• Encourage local game development that reflects Saudi culture and values.
• Introduce clear regulatory frameworks and financial incentives to attract global gaming companies.
• Host gaming events and tournaments that cater to casual and professional gamers, content creators, and corporates.
• Build state-of-the-art gaming facilities and ensure high-speed internet access across KSA.

Saudi Arabia is at the forefront of a gaming revolution, with unparalleled potential to lead the MENA region and compete on a global scale. By addressing value leakage, fostering local talent, and investing in world-class infrastructure, KSA can transform its gaming industry into an economic and cultural powerhouse. With strategic planning and execution, Saudi Arabia can achieve its vision of becoming a global gaming hub, contributing significantly to its digital economy and Vision 2030 objectives.

Roland Berger: Your Strategic Partner in Building a Thriving Gaming Ecosystem

At Roland Berger, we provide tailored support to help Saudi Arabia establish a world-class gaming ecosystem. Our expertise focuses on three key pillars:

Define Gaming Hub Strategy:

• Identify core strengths and unique value propositions.
• Establish a distinct market positioning within the global gaming ecosystem.

Develop and Prioritize Initiatives:

• Evaluate initiatives based on value, feasibility, and resource requirements.
• Prioritize projects with the highest impact potential.

Detail the Implementation Roadmap:

• Outline clear actions, timelines, and governance structures.
• Ensure seamless execution with measurable milestones.

With our proven methodologies and deep industry insights, Roland Berger stands ready to guide Saudi Arabia’s transformation into a global gaming powerhouse, driving sustainable growth and economic impact.