Saudi Arabian govt to invest $38 billion to become video-game hub
The Saudi Arabian government is betting $38 billion on the country’s potential to become the next hub for the video-game industry.
The Saudi Arabian government has announced that it is investing $38 billion in the country’s video game industry, aiming to establish the kingdom as the next hub for this rapidly growing sector. This initiative, which was announced by the Saudi Arabian General Investment Authority (SAGIA), is a part of the Vision 2030 program, which aims to diversify the Saudi economy and reduce its dependence on oil.
Investment in next ten years
The investment will be made over the next 10 years, and it will be focused on developing local video game studios, attracting international companies to invest in the country, and creating training and job opportunities for Saudi citizens. The plan is to establish a video game industry that can compete with established markets such as the United States, Japan, and South Korea.
Growth in recent years
This move is not surprising, given the massive growth of the video game industry worldwide. According to a report by Newzoo, the video game industry generated revenue of $189.3 billion in 2020 and is projected to reach $217.9 billion by 2023. The Middle East and North Africa (MENA) region, where Saudi Arabia is located, has seen significant growth in recent years, with the video game market in the region expected to reach $6 billion by 2023.
Saudi Arabia’s impact
The Saudi Arabian government’s investment is expected to have a significant impact on the video game industry, not just in the region but globally. By creating a strong video game ecosystem in the country, it will provide a platform for local talent to showcase their skills, attract international companies to invest in the country, and create job opportunities for young Saudi citizens.
Positioning in global digital economy
Furthermore, this initiative is aligned with the country’s wider strategy of diversifying its economy and reducing its reliance on oil. By investing in the video game industry, Saudi Arabia is positioning itself as a player in the global digital economy, which is expected to continue growing in the coming years.
Investment by Saudi Arabia
In conclusion, the Saudi Arabian government’s investment of $38 billion in the video game industry is a significant development that could have far-reaching effects on the industry globally. It is an exciting time for video game developers and enthusiasts in Saudi Arabia, who will have the opportunity to play a key role in building a thriving video game ecosystem in the country.