Dubai, the bustling city of United Arab Emirates, has made headlines once again, this time for its flourishing ambitions in the video game industry.
As a country already known for attracting some of football’s biggest stars and co-owning professional golf ventures, Saudi Arabia is now setting its sights on becoming a dominant player in the $180 billion-a-year gaming world.
In a bold move last September, the Saudi sovereign wealth fund set aside an impressive $40 billion to establish a groundbreaking conglomerate, with the aim of transforming the kingdom into the “ultimate global hub” for games and esports by 2030.
Building on this momentum, the fund further solidified its presence in the gaming realm by becoming Nintendo’s largest outside investor in February.
With no signs of slowing down, Saudi Arabia recently hosted a highly-anticipated gaming tournament, boasting an unprecedented prize pool of $45 million.
This ambitious endeavor not only highlights the nation’s commitment to establishing itself as a key player in the rapidly expanding gaming industry but also signifies its readiness to propel the realm of esports to unprecedented heights.
It will be intriguing to witness the Kingdom’s future endeavors as it navigates this dynamic and lucrative landscape, all while striving to position itself at the forefront of the global gaming phenomenon.
Saudi Arabia has emerged as a significant player in the sports and entertainment industry, which has undoubtedly contributed to its rapid transformation from an insular kingdom primarily recognized for its oil resources and ultraconservative Islamic practices.
The country’s newfound prominence in this sector has not only bolstered its global reputation but has also paved the way for its emergence as a sports and entertainment powerhouse.
This transformation has been propelled by various factors, including the government’s strategic investments, its commitment to diversifying the economy, and the increasing demand for sports and entertainment among the Saudi population.
As a result, Saudi Arabia has successfully positioned itself as a dynamic and influential player in the international sports and entertainment landscape, attracting major events, renowned athletes, and global entertainment icons.
This newfound status has not only boosted the economy but has also played a pivotal role in enhancing the country’s soft power and fostering cultural exchange on a global scale.
Saudi Arabia’s journey from an oil-dependent nation to an emerging sports and entertainment powerhouse is a testament to its ambition, vision, and adaptability, and it will undoubtedly continue to shape the country’s future trajectory in the industry.
The foray of Saudi Arabia into the world of gaming has generated a comparable backlash to what has been witnessed in soccer and golf.
Detractors argue that the Saudis are engaging in “sportswashing” to divert attention from their human rights abuses, such as the notorious 2018 killing of Washington Post columnist Jamal Khashoggi, who was a Saudi dissident.
By immersing themselves in the gaming industry, a nation known for imposing lengthy prison sentences on individuals for mere tweets is now entering a global community predominantly occupied by the youthful and digitally connected.
Joost van Dreunen, a professor at New York University renowned for his book on the business of video games, likens this situation to the Romans using the Colosseum to showcase their wealth and power.
He poses an important inquiry: who is behind this initiative, and what are their true intentions? Crown Prince Mohammed bin Salman, a 37-year-old avid gamer, considers this venture into gaming an integral part of Vision 2030, his ambitious plan to revamp Saudi Arabia’s economy, reduce its dependence on oil, and provide employment opportunities and entertainment for its vibrant young population.
In an effort to tap into the immense potential of the esports and games sector and drive economic diversification, a groundbreaking announcement was made last September.
The establishment of the Savvy Games Group, backed by the formidable Saudi Arabia’s $700 billion Public Investment Fund and helmed by the experienced CEO Brian Ward, signifies a major initiative aimed at investing a staggering $39 billion into the gaming industry.
The ambitious goal of this venture is to nurture and develop 250 local companies, with the broader objective of generating a remarkable 39,000 job opportunities within the next seven years.
Most recently, the completion of the $4.9 billion acquisition of Scopely, renowned for their popular titles such as “Monopoly Go,” “Star Trek Fleet Command,” and “Marvel Strike Force,” only serves to underscore the resolute determination and unwavering commitment of the Savvy Games Group to strategic growth and innovation in the rapidly evolving gaming landscape.
The landscape of entertainment has undergone a remarkable transformation in recent years, with gaming emerging as an overwhelmingly colossal and rapidly expanding industry.
In unequivocal terms, the sheer scale and magnitude of the gaming sector have left observers both awe-stricken and astounded.
According to Market research firm Newzoo, a staggering 3.2 billion individuals engross themselves in the intricate tapestry of interactive entertainment, be it on personal computers, dedicated gaming consoles, all-encompassing mobile devices, or cutting-edge cloud gaming services.
As we delve into the mind-boggling statistics and delve into the abyss of numbers, the reality becomes even more palpable and awe-inspiring, with the sector generating an exorbitant $184.4 billion in revenues during the year 2022 alone.
Such titanic figures necessitate a broader perspective, and thus the juxtaposition becomes evident when we realize that gaming outpaces the collective earnings garnered from not only the global box office but also the realms of music streaming and album sales.
Further still, the exorbitant financial supremacy of the gaming industry even surpasses that of the world’s top five wealthiest sports leagues, as authenticated by a comprehensive report published in 2021 by the esteemed Boston Consulting Group.
The advent of gaming as a dominant force on the entertainment landscape is undeniably transformative, exerting an irresistible allure on billions of enthusiasts worldwide while redefining the parameters of success and profitability in an increasingly digital era.
In addition to its notable advancements in various domains, such as technology, infrastructure, and economy, the kingdom is now making headway into the dynamic and rapidly expanding realm of esports.
This captivating phenomenon revolves around competitions that pit some of the world’s finest and most skilled players against one another in an exhilarating showcase of virtual prowess.
Remarkably diverse in nature, these competitions encompass an eclectic range of games, spanning from adrenaline-inducing battle royales and immersive first-person shooters to acclaimed sports simulations like “FIFA” soccer and “Madden NFL.” To the casual observer, the notion of spectating others engaged in video gaming activities might appear perplexing or uninteresting.
However, the reality is quite the contrary. Esports has emerged as a colossal industry, with an expansive global following encompassing millions of enthusiastic fans, global sensations as celebrity players, and the backing of prominent corporate sponsors.
An enlightening testament to its soaring popularity, a recent esports tournament held in Singapore in 2021 magnetized a staggering 5.4 million simultaneous viewers, asserting its immense appeal and remarkably captivating nature.
According to Christopher Davidson, a Gulf expert at the European Center for International Affairs, investing in esports offers exceptional advertising opportunities and serves as a means to promote the brand of a country as an appealing and forward-thinking destination for tourism.
Davidson further emphasizes that esports possesses a distinct advantage over traditional sports due to its youthfulness and global appeal. While English soccer may enjoy popularity in Western regions, it fails to garner similar enthusiasm in average-sized Chinese cities. In contrast, esports transcends cultural boundaries and resonates with audiences worldwide.
As an illustration, Saudi Arabia successfully hosted the Gamers8 tournament last summer, featuring a weeks-long competition with a staggering $15 million prize pool. The event has returned this month, promising an even more impressive prize pool that is three times larger.
Saudi Arabia’s increasing interest in esports has not gone unnoticed by its wealthy Gulf neighbors. Dubai, a city in the United Arab Emirates, recently hosted a five-day esports festival, showcasing the region’s growing enthusiasm for the industry.
Furthermore, the Qatar Investment Authority has made a significant move by acquiring a minority stake in Monument Sports & Entertainment, a company that owns prominent sports teams such as the Washington Wizards and Capitals, as well as various esports holdings.
However, the involvement of these autocratic Gulf states in the esports scene has sparked a heated debate within the gaming community.
This controversy led Riot Games, the developer of the popular multiplayer battle game “League of Legends,” and Danish tournament organizer Blast Premier to cancel their partnerships with Saudi Arabia in 2020 due to fan outcry.
The Blast Premier world finals were subsequently held in Abu Dhabi, the capital of the UAE, where it faced similar criticism. The clash between the growing interest of Gulf states in esports and the concerns raised by fans highlights the complex dynamics at play within the industry.
In a commendable move, Team Liquid, an prominent esports organization with an impressive roster of 60 skilled players across 14 different games, made an announcement in December that showcased their commitment to promoting inclusivity and combating discrimination.
They revealed their decision to donate half of their recent competition winnings from tournaments held in Saudi Arabia and the United Arab Emirates to an organization devoted to assisting LGBTQ+ individuals facing violence and persecution.
It is worth emphasizing that homosexuality is widely regarded as a taboo subject in the majority of Middle Eastern countries, with Saudi Arabia and the UAE even criminalizing homosexual acts, albeit prosecutions remain infrequent. Furthermore, both these nations have laws that ban any form of advocacy for LGBTQ+ rights.
However, Team Liquid’s statement did not negate the challenges and dilemmas linked to accepting sponsorship from such countries.
They acknowledged the complex and multifaceted nature of their involvement in these events, recognizing that they present vital opportunities for their players, many of whom have short-lived careers characterized by uncertainty and limited security.
A blanket boycott, while potentially fueled by noble intentions, may have far-reaching consequences that extend beyond simply putting an end to certain players’ careers. It could, in fact, result in severing Team Liquid’s involvement in the esports industry as a whole.
In the realm of sports, particularly in the ever-evolving world of esports, the question of ethics and the influence of financial interests has become increasingly prominent.
Stanis Elsborg, a highly regarded senior analyst at Play the Game, an international initiative dedicated to promoting ethics in sports, has delved extensively into the intricate relationship between esports and the ambitious goals of the Gulf region.
Elsborg asserts that the recurring dilemma faced by the esports industry stems from the undeniable power of money.
Drawing parallels to other sports, Elsborg predicts that esports will inevitably follow a trajectory where significant partnerships will be forged with state-owned companies hailing from autocratic states.
This observation sheds light on a potentially complex future for esports, as it navigates the delicate balance between financial gains and ethical considerations.