Saudi Arabia's Gaming Revenue Surges 20% to $12 Billion in 2024

Saudi Arabia's gaming and esports industry has achieved a significant milestone, generating 12 billion dollars in revenue in 2024. This figure represents 20% of the total gaming industry revenue in the Middle East and North Africa (MENA) region. The remarkable growth is attributed to the "National Gaming and Esports Strategy," launched three years ago as part of Saudi Arabia's broader "Vision 2030" initiative. This strategy aims to create 39,000 jobs and contribute 13.3 billion dollars to the country's GDP by 2030, positioning gaming and esports as one of the 13 strategic priority industries.

The establishment of Savvy Games Group, a national-level gaming and esports conglomerate under the Public Investment Fund (PIF), has been pivotal in supporting Saudi Arabia's ambition to become a global hub for gaming and esports by 2030. The group's 2024 annual report highlights that the industry is expected to generate over 187 billion dollars in value, reflecting a growth rate of more than 2.1% compared to the previous year. This growth underscores the industry's significant scale and appeal to a broad audience, positioning it as a key driver of innovation and user engagement in the entertainment sector.

The global gaming market is projected to reach 269.06 billion dollars by 2025 and 435.44 billion dollars by 2030, with a compound annual growth rate of 10.37%. This growth is fueled by the widespread adoption of mobile devices, the proliferation of 5G technology, and the rise of cloud streaming, which are attracting new participants and driving revenue diversification and platform integration.

Savvy Games Group's 2024 annual report indicates that Saudi Arabia's gaming market generated approximately 11.9 billion dollars in revenue, with projections to reach 16.4 billion dollars by 2028, representing a compound annual growth rate of 8.2%. All gaming segments in Saudi Arabia, including console, mobile, and PC gaming, are experiencing robust growth. The compound annual growth rates for these segments are projected to be 8.27%, 7.29%, and 4.01% respectively from 2023 to 2028.

The broader MENA region is also witnessing substantial growth, with video game revenues expected to grow at a compound annual rate of 7.3% from 2024 to 2027. The region's gaming revenue is projected to reach 56.2 billion dollars in 2024 and 69.4 billion dollars by 2027. Saudi Arabia leads this growth, with a 2024 gaming revenue of 11.9 billion dollars and a player base exceeding 25.81 million. The "National Gaming and Esports Strategy" is a pivotal component of Saudi Arabia's "Vision 2030," aimed at fostering national creativity and dynamism, and transforming the gaming industry into a key economic sector.

Savvy Games Group has played a crucial role in achieving Saudi Arabia's gaming and esports ambitions. Its subsidiary, Scopely, ranks second among global gaming companies, with its flagship game "Monopoly Go!" generating 3 billion dollars in revenue and winning the "Game of the Year" award at the 2024 Pocket Gamer Mobile Games Awards. Since its inception in 2011, Scopely has accumulated 10 billion dollars in revenue, with games like "Wordle" expanding to platforms such as Xbox One and Xbox Series X/S.

Savvy Games Group's portfolio includes other notable investments, such as ESL FACEIT Group, Steer Studio, an 8.1% stake in Embracer Group, a 30% stake in Hero Esports, and G1riffin. These investments underscore Saudi Arabia's expanding footprint in the global gaming and esports landscape. The group's CEO emphasized that "influence" is a core principle, driving excellence throughout the production value chain and delivering superior products and experiences to the global gaming community.

In 2023, Saudi Arabia hosted its inaugural Esports World Cup, featuring 1,500 athletes competing in 22 games across 23 events. The tournament offered a total prize pool of over 60 million dollars, showcasing Saudi Arabia's ambition to become a leading center for top-tier esports events. This event further solidifies Saudi Arabia's position as a key player in the global gaming and esports industry, driven by strategic investments and a clear vision for future growth.