There are very few events that showcase the best of the human spirit like the Olympics. With a history spanning over two millennia, the Games reflect both their rich tradition and the ongoing evolution needed to remain relevant today and in the future. Since the inception of the modern Olympics in 1896, over 30 new sports have been introduced, each one responding to the changing demands of the times.
This forward-thinking approach was symbolised by a historic announcement from the International Olympic Committee (IOC) last week, which stated that it will host the first-ever Olympics E-Sports Games in Saudi Arabia next year.
The Gulf region has been at the forefront of e-sports for many years, and creating the new event is excellent news for our region. It also marks a significant step in recognising the growing popularity and impact of e-sports globally.
Youth engagement and year-round appeal: How e-sports drive economic growth
It is easy to see the rationale behind the IOC’s decision. E-sports have become a global phenomenon. Worldwide, 475 million people attended e-sports events in the past year. More than half of these fans are from the Middle East, with Saudi Arabia currently hosting the world’s largest e-sport competition, The E-Sports World Cup, as we speak.
Contrary to the stereotype that e-sports are primarily the pastime of disengaged youth, the majority of e-sports enthusiasts are affluent professionals who are established in their careers. In research we conducted at Manara Global, we found that two-thirds of gamers under 35 in the Gulf are among the top 10 percent of earners in the region, and nearly a third hold managerial positions at work.
For organisers of events like the World Cup and the Olympics, tapping into the spending power of their audience is essential for maintaining the financial viability of the sport. The rising popularity of e-sports globally, combined with its audience’s spending power, is set to generate substantial revenues through ticket sales, advertising, hospitality, sponsorship, and content consumption. This, in turn, will help attract more interest and drive the continued growth of the sport.
Take, for example, a young e-sports fan from Dubai attending the E-Sports World Cup in Riyadh. He would spend on airfare and hotel accommodations, dine at local restaurants, and purchase event merchandise. Additionally, he might buy digital goods such as exclusive in-game content, NFTs, or streaming passes to watch the competition, thereby supporting both local businesses and the broader digital economy.
These businesses also benefit from e-sports’ flexibility. Unlike traditional sports, which are often seasonal and weather-dependent, e-sports take place indoors and can occur year-round. Additionally, many e-sports venues are now built using modular units, similar to the football stadiums used at the Qatar World Cup.
This modular design allows these venues to be easily assembled and disassembled, reducing the need for considerable capital expenditure. As a result, events can be hosted in various locations, including areas away from capital cities with highly developed infrastructure, thus creating a positive economic impact in regions that might otherwise be overlooked.
Nvidia and beyond: How e-sports boost innovations
E-sports is also a living laboratory for the latest digital technologies, in the same way that Formula One advances automotive engineering. The need for seamless live streaming, instant data updates, and secure transactions pushes the boundaries of existing technology, leading to innovations that benefit a wide range of industries.
For example, Nvidia’s graphics chips (aka. graphics processor units, or GPU), which now power ChatGPT, were originally designed for gaming. Nvidia may now be one of the most valuable companies in the world, but it was the demand from e-sports developers and enthusiasts that kept it afloat for many years before the rise of generative AI and other chip-intensive technologies.
What’s more, serious and self-disciplined e-sports players often have a strong interest in technology and pursue degrees in science, engineering, maths, and other related subjects. Mark Zuckerberg, for instance, credits video games with sparking his interest in programming during high school. This type of talent has been and will remain crucial for driving innovation in our digital economy, and often, their first entry into this world is through gaming.
Sports, like life, will increasingly take place in the digital realm
The crowds who gather in Paris to watch world-leading athletes are witnessing truly awe-inspiring human achievement, which will inspire future generations. For this reason, these physical events will remain popular for years to come, but the IOC is also quite right to recognise that the digital realm is the new frontier for the Olympic tradition.
E-sports has the potential to provide a range of economic benefits and has engaged a whole generation of new players. The Olympic Games are where the world comes to compete, feel inspired, and be together.
It is only right that next year, the world will come together in Saudi Arabia to experience the evolving landscape of sports and the new opportunities e-sports presents for fans, athletes, and industries alike.
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