The Saudi Arabian government’s National Development Fund (NDF) and the Social Development Bank (SDB) announced this week plans to launch two venture capital funds to promote “gaming and esports sectors” in Saudi Arabia. The funds will have a total combined value of $120M USD, according to a release.
The announcement was made during the LEAP 2024 technology conference in Riyadh, Saudi Arabia, this week, and is part of the government’s “Gaming and Esports Financing Programme,” in cooperation with the Saudi Esports Federation.
“The gaming and esports industry has seen exponential growth globally, generating substantial revenue and job opportunities,” said Dr. Stephen Grove, Governor of NDF, in a release. ”With Saudi Arabia’s young demographic and other attractive investment components, NDF and our partners are prioritizing innovative financing solutions for this industry. We aim to ensure its financial sustainability and contribute to the Kingdom’s economic diversification and job creation efforts.”
Merak Capital will manage the first fund, which will have access to around $80M in working capital, while IMPACT46 will manage the second fund, valued at around $40M. The goal of this money is to foster growth in esports and gaming sectors within the country that are profitable, create jobs, and degenerate revenue for Saudi Arabia.
(Photo by Akhilesh Sharma on Unsplash)