Esports World Cup in Saudi Arabia fits into the Kingdom’s strategy

Gamers gathering in Riyadh to compete for major prizes has helped grab investors’ attention regarding the screen-shattering growth of the sector, with all trend lines pointing up

The Esports World Cup is currently being held in Riyadh, Saudi Arabia
Jason Lyon
The Esports World Cup is currently being held in Riyadh, Saudi Arabia

Esports World Cup in Saudi Arabia fits into the Kingdom’s strategy

More than half a century ago, in October 1972, a group of Stanford University students in California took part in a video game competition. It was titled the inaugural “Intergalactic Spacewar Olympics”.

Playing the game ‘Spacewar’, the students used torpedoes to fight one another in spaceships flying around a star whose gravitational field sucked them towards the centre. First prize was a year’s magazine subscription.

These days, electronic computer gaming looks rather different.

Electronic sports, or esports, is a huge multi-billion-dollar industry with millions of players. From fun bedroom participation between friends, it has grown into a mainstream form of globalised entertainment with major spectator events.

There are now enough competitions—including at international level—to provide significant revenue from broadcasting rights, which brings sponsorship contracts and advertising deals. These are growing in-line with esports’ wider popularity and the number of teams taking part.

Olympics and World Cup

The proliferation has led somewhat inevitably to an Esports World Cup. This is currently underway in the Saudi Arabian capital, Riyadh, with the Kingdom keen to be at the front of this new wave of digital sport.

It comes after Crown Prince and Prime Minister Prince Mohammed bin Salman announced in 2023 that the championship would be held.

The first event of its kind, prize money now exceeds $60m—enough to buy several magazine subscriptions. With 1,550 players and more than 500 teams from 22 countries, it is already a colossal undertaking.

Following the trend, the International Olympics Committee (IOC) last month announced that it had partnered Saudi Arabia to host the first ever Esports Olympic Games in 2025.

To play and to watch

The esports step-change began around 15 years ago, helped by the global expansion of the internet and social media. Gamers could stream their play online, including on YouTube. With enough viewers, they could make big money through their channels.

When the trend began, esports were best known for being played, not for being watched, yet it soon became clear that there were huge numbers who wanted to do so.

The proliferation has led somewhat inevitably to an Esports World Cup. This is currently underway in the Saudi Arabian capital, Riyadh

This led to the formation of groups of the best and most well-known players. These groups developed their own logos and branding, and sold gaming tools, clothing, and other merchandise, cashing in just like big-name football clubs might.

When the COVID-19 pandemic hit in 2020, social interaction ground to a halt. The lockdowns proved a boon for esports and the industry took an unprecedented leap, with an extra $14bn spent between 2022-21.

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Huge additional numbers began playing and watching the games. A staggering 500 million new players have taken up the pastime in the past three years, creating an unexpected golden opportunity for games companies.

Spending on esports

The sector's rapid growth prompted games manufacturers to rethink their marketing. Many signed up famous players to promote their products, just as Nike or Adidas might do.

This esports trend has only increased, as has the money being thrown at it. Spending on esports will soon pass the $200bn mark, with China a global leader in sales, followed by the United States.

An estimated $1.9bn was spent on electronic games in Saudi Arabia alone, the Saudis being the keenest gamers in the Arab world.

There are now numerous annual championships and events that attract billions in spending. Commensurately, the popularity of esports championships has grown significantly, attracting hundreds of millions of viewers.

For instance, the 2018 League of Legends final in South Korea attracted more than 100 million viewers, more than watched the Super Bowl final.

Following the trend

Asia and North America are among the largest markets for games. Some of the most important game manufacturing countries include China, South Korea, and Japan, with other big players in the United States, Canada, and Europe.

According to the gaming statistics company Newzoo, the sector is likely to grow by 9-12% annually in the coming years.

When the COVID-19 pandemic hit in 2020, social interaction ground to a halt. The lockdowns proved a boon for esports

Saudi Arabia was quick to recognise the importance of esports, which have been popular in the Kingdom for some time, especially with young people. There are an estimated 23 million Saudi players, or 67% of the population.

That leaves the country well-positioned to attract both local and global investors, who can see that esports are taken seriously there. In addition, esports are known to open the door to other opportunities, such as tourism and cultural exchange.

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Electronic games and esports are linked to the revolution in Artificial Intelligence (AI), which is shaping the future of Saudi Arabia, such as by building communities using the most advanced techniques available.

Saudi esports strategy

In 2022, the National Strategy for Electronic Games and Sports set a goal of $13bn in revenue by 2030. Part of that is money from events and competitions.

Since it was set up, numerous events and championships have been held. The first Gamers Season, launched in 2022, is one of the largest gatherings in global esports.

Saudi esports player Musaed Al-Dossary, who heads the championship-winning Falcons team, said: "It's a great feeling to receive sponsorship and support from your country, and to have the first and largest championship in this sport held in your country. It's definitely every player's dream."

Mohammed Saad Anadolu/AFP
Preparations for the opening ceremony of the 2024 Esports World Cup in Riyadh, Saudi Arabia, on July 2, 2024.

Saudi Esports Federation chief executive Turki Al-Fawzan said during the tournament's launch ceremony that Saudi Arabia is now one of the leading esports countries, especially for hosting and organising tournaments. He added that its strategy for esports includes the creation of 40,000 jobs by 2030.

Al-Dossary believes the future of esports is promising given the attention and support from senior Saudi officials, particularly Crown Prince and Prime Minister Prince Mohammed bin Salman, an esports player himself.

It's a great feeling to receive sponsorship and support from your country, and to have the first and largest championship held there

Saudi esports player Musaed Al-Dossary

The Savvy Games Group, set up and wholly owned by the Saudi Public Investment Fund, is part of the Kingdom's strategic move into esports. It will help drive long-term growth and be part of the industry's global development.

There is also a place for esports in the Qiddiya project, the cutting-edge tourist destination under construction outside Riyadh. It will have the world's largest esports zone and the first dedicated space for multi-use electronic games and esports anywhere, aiming to attract players from around the globe.

Becoming professionals

Over time, global esports has become more professional, with numerous academies worldwide offering programmes to hone players' skills. Among the most famous is the Ontario Esports Organisation in Canada.

The Saudi Esports Academy has over 197 training plans for players, while the Saudi Electronic University in Riyadh provides specialised training halls and modern technical learning methods in collaboration with big tech companies like HP and AMD.

The best can benefit in different ways. For instance, South Korean player Lee Sang-hyeok, better known as Faker, was exempted from mandatory military service after winning the gold medal in China in 2023.

In short, esports is now very different from the not-too-distant world in which gamers would post videos (once known as 'streamers'). There are now professional esports athletes competing in global tournaments, like other major sports.

This is now one of the world's fastest growing sporting activities, with extraordinary audience and participant numbers and significant further growth to come.

Add in a host of potential cultural, social and economic benefits that come with it, and it is little wonder that esports are quickly becoming loved not just by players and viewers, but by companies and countries as well.

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