Saudi Arabia are taking their ambitious Vision 2030 strategy to the next level by investing heavily in the gaming industry.
The Kingdom is determined to reduce its dependence on energy revenue by diversifying into sectors such as entertainment, technology and tourism.
Saudi Arabia is reportedly the 19th-largest gaming market in the world. Around 89 percent of Saudi citizens are gamers in the 21-35 age category.
Read on as we look at how gaming could develop further in Saudi Arabia due to significant developments elsewhere in the Middle East.
Expansion into iGaming Could be a Game-Changer for Saudi Arabia
Saudi Arabia aims to develop at least 30 competitive games by 2030, which would strengthen the country’s reputation as a major player in the global gaming industry.
However, it would be no surprise if they expanded their gaming plans into associated sectors such as iGaming following recent developments in the United Arab Emirates (UAE).
The UAE has established the General Commercial Gaming Regulatory Authority (GCGRA) which recently rubber-stamped the first lottery in the country.
The move is a strong indicator that the UAE wants to tap into the vast revenue generated by the gambling sector, and international operators have been quick to take notice.
MGM Resorts recently applied for a casino licence in Abu Dhabi, and Chief Executive Officer Bill Hornbuckle believes the company will be successful.
Hornbuckle stated that the federal government and the Abu Dhabi government will provide their approval for the process.
“We’ve submitted an application there and are hopeful for a positive outcome. Then, each authority will have its input. It’s similar to a system where each state gives its approval or denial.”
“I hope and believe we’ll hear more from Abu Dhabi later this year about the federal mandate and federal oversight.
“We actually have a long history with the region. We worked with a group called Dubai World, which was partnered with us in CityCenter, [so] we know the region, and we know a lot of the layers.”
While Abu Dhabi’s resort plans are in their infancy, the Wynn Resorts project in Ras Al-Khaimah is already underway and is also awaiting a casino license.
With other nations seemingly eager to jump on the bandwagon, Saudi Arabia could be tempted to set up a regulatory framework for gambling over the next few months.
An online casino in Saudi Arabia can already operate without fear of sanction providing it is licensed and regulated by a recognised gambling authority.
However, this denies the Saudi government the opportunity to garner tax revenues, thus impacting their economy. Introducing their own regulatory body would change the landscape.
Saudi Investment Into Savvy Demonstrates They are Serious About Gaming
Savvy Games Group is the major driving force behind Saudi Arabia’s keen interest in the gaming sector, and they’re backed by a $38 billion investment from the Public Investment Fund (PIF).
They want to build a strong gaming ecosystem in Saudi Arabia, and the plan is to lure gaming companies from around the world into the fold while nurturing local talent.
HRH Crown Prince Mohammed bin Salman has repeatedly emphasised that the younger demographic in the country will be crucial to the gaming revolution.
He believes that their energy and creativity are the backbone of the country’s gaming and eSports growth, which is why they are sparing no expense to provide them with the necessary infrastructure and resources to thrive.
One of the key projects that has the potential to put Saudi Arabia on the global map is the eSports World Cup, which was staged for the first time this year.
The event lured top talents from around the world, with 22 game championships and a mouth-watering $60 million prize pool up for grabs. It also sparked massive interest in the betting industry.
Saudi Arabia’s commitment to gaming is expected to create thousands of jobs and contribute a large chunk to the nation’s economy.
The gaming industry has the potential to create about 39,000 jobs and inject around $13.3 billion into Saudi Arabia’s gross domestic product (GDP) by 2030.
Such massive growth would have a far-reaching impact on other industries, including tourism, media and technology, which are all vital components of Saudi’s Vision 2030 plan.