- The government has launched the National Gaming and Esports Strategy (NGES) to harness the country’s video game potential
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Saudi Arabia led the MENA region in investment volume by securing 51% of the $429 million invested across 163 deals in Q1 2024. According to the 2024 State of Web3 in Saudi Arabia report by VC firm and accelerator Adaverse, the Kingdom of Saudi Arabia is projected to become the largest component in the MENA games market with a value of $6 billion by 2027. With 21 million active gamers, accounting for 58% of the country’s population, KSA provides a strong foundation for industry growth, making it an ideal region for Web3 startups seeking funding opportunities.
The role of investors
Saudi Arabia’s startup ecosystem is divided into four layers: user-facing applications, tools for developers, infrastructure, and foundational protocols. While there is a strong focus on consumer-facing applications like DeFi, GameFi, and SocialFi, there is a noticeable lack of startups in the infrastructure and protocol layers. This gap presents significant opportunities for entrepreneurs and investors, both local and international, to develop and support the foundational elements of the ecosystem.
Video games opportunities
The National Gaming and Esports Strategy (NGES) launched by the Saudi Arabian government aims to create 39,000 jobs and contribute $12 billion to the economy by 2030. The Kingdom now holds nearly a 45% share of the Middle East’s games market, which is valued at over $1.8 billion. While Saudi Arabia dominates the regional games landscape, the adoption of Web3 games remains slow, presenting opportunities for young entrepreneurs to lead the development of blockchain-based games and integrate emerging technologies like NFTs, AI, and play-to-earn models into the market.
The government’s active support
Saudi Arabia is taking a proactive approach to regulate and support Web3 technologies, with key government bodies like the Communications, Space & Technology Commission (CST) providing guidelines and financial backing for blockchain projects. King Abdulaziz City for Science and Technology (KACST) has also partnered with Animoca Brands to create a Web3 Hub focused on research and education in blockchain, AI, and the metaverse. Vincent Li, an investor and founding partner of Adaverse, expressed excitement about expanding efforts in the Middle East, particularly in Saudi Arabia.
You can read the full report here.
