23 November 2024, Sat |
1:05 AM
The gaming and esports industries are set to provide rich opportunities for players and governments alike over the coming decade, with Saudi Arabia poised to take a leading role on the global stage. With substantial revenue potential, high-quality job creation, various reputational benefits, and approximately three billion active participants, the gaming and esports industry is sure to provide rich opportunities for players and governments alike.
According to the Boston Consulting Group’s (BCG) report, ‘Gaming & Esports: Media’s Next Paradigm SHIFT,’ overall consumption in Saudi Arabia is predicted to reach USD 6.8 billion by 2030, up from USD 959 million in 2020, at a compound annual growth rate (CAGR) of 22 percent.
According to the conclusions of the survey, the Kingdom now has 23.5 million gaming enthusiasts, or 67 percent of the total population. Furthermore, 90 percent of this group — 21.1 million people – are already semi-pro or amateur esports gamers, with only 100 professional esports players pursuing full-time employment. Given the Kingdom’s gaming and esports community’s potential for expansion, the approaching era gives an ideal chance to ensure that related advantages are fully realised in due course.
“From a Saudi standpoint, these growth projections undoubtedly bode well for the local gaming and esports community,” explained Povilas Joniskis, Partner, BCG.
He added, “Despite the Kingdom being a relatively recent entrant to this space, the industry is vibrant and fast-growing, nevertheless. Passionate gamers are primarily powering its growth and popularity at present, and it is more than feasible for them to embark on full-time careers and become involved on the international stage. Yet first, key barriers concerning aspiring Saudi competitors and professionals must be overcome.”
“When examining gaming and esports in Saudi Arabia, we see interest in the industry growing among the government and less traditional business players alike,” added Povilas Joniskis, Partner, BCG Riyadh.
He added, “By focusing on areas for improvement and approving the necessary investments across specific segments, the Kingdom’s economy, reputation, jobs market, and talent pool all stand to reap the rewards. “
While the Saudi gaming and esports industry has a lot of potential right now, it also has a lot of challenges because it is still in its early stages of development compared to other international markets, such as a lack of funding to compete full-time, a lack of local competition, no clear path for gamers to become professional, and social stigma associated with choosing a career in gaming and esports.
As a result, the Kingdom’s leadership now has the potential to capitalise on the widespread passion for gaming by converting the current high level of consumption intensity into a matching degree of output intensity. The paper outlines the reasons why the government should support the industry, which is already positioned to be a key enabler of ecosystem growth for the business.
Collaboration, funding, and financial support
Furthermore, the paper highlights the gaming and esports industry’s critical position in the Saudi government’s future-focused ‘Vision 2030’ development objectives, elaborating on important stakeholders who have already shown support for widespread sector development. Manga Productions, which is part of Misk Foundation, a government-sponsored non-profit focusing on developing KSA’s youth as economic stewards, is one local example. Manga Productions is assisting with funding and financial support, as well as education and talent attraction.
Meanwhile, the Saudi Ministry of Communications and Information Technology (MCIT) teamed up with DigiPen, the world’s leading game design academy, to launch the Game Changers programme, which aims to provide “unique career pathways for entrepreneurs in the Saudi game industry” and boost the number of independent game company startups.
