The Saudi Esports Federation (SEF) announced this week that it has signed a Memorandum of Understanding (MoU) with Merak Capital.
Financial terms of the deal have not been disclosed. The deal between the SEF and the Riyadh, Saudi Arabia-based firm was finalized at the New Global Sport Conference, as both SEF CEO Rawan AlButairi and Merak Capital CEO Abdullah Altamami were on hand to speak at the annual business event.
Under the terms of this new agreement, the organizations will work together to provide citizens with gaming and esports training programs, create global partnerships, engage in events in the region, and work towards attracting international studios to the country.
“Our partnership with the Saudi Esports Federation marks an important step in supporting the goals of the National Gaming and Esports Strategy,” Merak Capital Founder and CEO Abdullah Altamami said in a release. “By aligning our investment expertise with the Federation’s leadership, we will empower Saudi entrepreneurs and developers while enhancing the Kingdom’s global presence in the gaming industry.”
The new MoU aims to build on the $80 million USD Merak Gaming Fund, launched in January. The fund is part of the Gaming and Esports Financing Program led by the National Development Fund with the help of Social Development Bank and the SEFn. All of this is tied to the country’s Vision 2030 National Gaming and Esports Strategy. Vision 2030, in case you are not familiar with it, is the Saudi Arabian government’s long-term plan to move the country away from being solely dependent on revenue generated by fossil fuels. The goal is to diversify into new fields to fund the country including gaming, esports, technology, AI, tourism, and various forms of sport and entertainment.
Projects backed or owned by the Saudi Arabian government are often criticized for helping the government engage in so-called “sports washing,” or using various forms of sport and entertainment to cover up its record on human rights, women’s rights, LGTBQ+ rights, military actions in Yemen, and more. These and other criticisms have been highlighted by international watchdog groups such as Amnesty International and Human Rights Watch.