Neom, Saudi Arabia’s $500 billion city of the future, on Friday announced a joint venture agreement to establish a gaming studio as part of plans to create a global media hub.
MBC Group and Neom have signed a deal to establish the first AAA games development studio in the region. Currently being incubated with developers from all over the world, the studio will relocate to Neom’s Media Hub in 2023 and produce games for local, regional and international gamers.
The partnership highlights Neom’s push to create a new centre for the region’s media and creative industries.
The AAA gaming studio will form an integral part of the Neom Media Hub, facilitating the continued growth of this rapidly expanding industry, a statement said.
It added that by attracting global talent to Saudi Arabia, the gaming studio will create opportunities for regional gamers and developers seeking to build a career in the industry.
Further to the core studio disciplines of game design, programming, art and audio production, the studio is expected to create significant job opportunities across many directly linked industries inclusive of distribution, marketing, publishing and supporting services.
Neom CEO Nadhmi Al-Nasr said: “The future that Neom envisions is being achieved through effective partnerships with various specialised entities. This is reflected in our agreement with MBC to establish a AAA gaming studio in NEOM. We know there is a growing convergence between gaming and the media sector more broadly, so by building one we are helping the other grow.
“Establishing this studio creates future-proof career paths and job opportunities in an environment that fosters creativity, entrepreneurship and talent development, in line with Saudi Vision 2030. We are now developing promising opportunities locally, regionally and globally by nurturing the Saudi game-development market.”
Waleed Al Ibrahim, MBC Group chairman, added: “Our partnership with Neom unlocks new opportunities in the region’s media industry, which will enable Saudi Arabia to emerge as a leading global media hub.
“MBC will put all of its expertise behind this project to become an economic and technical incubator for a new generation of media talent, in keeping with the Kingdom’s efforts to support all aspects of the industry.”
Although the size of the gaming market in the Middle East and North Africa (MENA) reached $6 billion in 2021, the region currently makes few contributions to gaming development globally.
Last month, Boston Consulting Group said the popularity of gaming and esports are forecast to grow rapidly in Saudi Arabia, with the market expected to reach $6.8 billion by 2030.
It said the market is set to grow at an average compound annual growth rate (CAGR) of 22 percent – up from $959 million in 2020.
It said that with substantial revenue potential, high-quality jobs 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” over the coming decade – with Saudi Arabia poised to take a leading role on the global stage.
BCG said the kingdom is currently home to 23.5 million gaming enthusiasts, equivalent to 67 percent of the national population.
Moreover, 90 percent of this segment – 21.1 million –already play esports titles on a semi-pro or amateur basis, with 100 professional esports players pursuing fulltime careers.
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