to house 250<\/a> gaming companies, develop dozens of homegrown games and add more than $13 billion (R240 billion) to GDP by the start of the next decade.<\/p>\nThe kingdom is among the fastest-growing regions for the games industry after years of being underserved, according to analytics firm Niko Partners.<\/p>\n
\u201cWe want Saudi to be a natural part of the conversation where you cannot talk about the gaming industry and especially esports without mentioning Saudi on the top of your mind,\u201d Prince Faisal bin Bandar bin Sultan Al Saud, chairman of the Saudi Esports Federation, said in an interview.<\/p>\n
Event Boycotts<\/h2>\n
The event hasn\u2019t been without controversy.<\/p>\n
Some esports personalities and gaming celebrities have criticised Saudi Arabia\u2019s new centrality in esports, citing the country\u2019s track record with LGBTQ and women\u2019s rights.<\/p>\n
Esports event host Stella Chung said she made the \u201creally tough decision\u201d to decline an offer to work at the Esports World Cup after feeling she wouldn\u2019t be able to express herself as a bisexual.<\/p>\n
\u201cI felt boycotting the Esports World Cup would be a better use of my energy to support my marginalised community,\u201d Chung said.<\/p>\n
The Esports World Cup Foundation did not respond to a request for comment on the topic.<\/p>\n
While viewers are often less critical, Chung said, many people working in esports are debating how to move forward as financial support for esports retreats in the West, making Saudi influence hard to avoid.<\/p>\n
Team Liquid, which competes in three major leagues, is trying to find a middle ground.<\/p>\n
When players take the arena, they\u2019ll wear pride jerseys in support of LGBTQ rights.<\/p>\n
Competitors were permitted to wear the shirts showing streaks of rainbow after talking with Saudi authorities, according to Steve Arhancet, co-chief executive officer of the team.<\/p>\n
\u201cIt\u2019s a very strong message,\u201d Arhancet said.<\/p>\n
\u201cMaybe there are some gay Saudis that are gamers and watching the broadcast and feel maybe something is changing here.\u201d<\/p>\n
Driving Force<\/h2>\n
South Korea\u2019s Ahn said the apprehension shown toward Riyadh by some in the industry wasn\u2019t an issue for him or his players, who are visiting Saudi Arabia for the first time.<\/p>\n
The bigger concern, he said, is whether the kingdom can make the Esports World Cup a success that can impact the broader trajectory of the industry.<\/p>\n
The Saudi government is the driving force behind funding for the event, which costs in the range of nine figures, said Ralf Reichert, CEO of the Esports World Cup Foundation.<\/p>\n
The kingdom plans expenditures of more than $300 billion (R5.5 trillion) this year, according to its budget projections, with much going to Vision 2030 initiatives that support the economy\u2019s diversification beyond oil.<\/p>\n
That includes so-called giga projects like the entertainment city of Qiddiya.<\/p>\n
Esports World Cup operator ESL FACEIT Group has a five-year deal to help imagine Qiddiya\u2019s esports district, set to have four stadiums in close proximity to other entertainment offerings like a\u00a0Dragon Ball<\/em>\u00a0theme park\u00a0and one from Six Flags Entertainment Corp.<\/p>\n\u201cAn indoor arena for 5,000, 10,000 or 20,000 people doesn\u2019t exist yet in Riyadh. That\u2019s what\u2019s being built,\u201d said Craig Levine, co-CEO of EFG, as the company is known.<\/p>\n
More Than Money<\/h2>\n
It may take years for the kingdom to see returns on its esports investments and specifically on tournaments, which have been a challenging business proposition.<\/p>\n
Although hundreds of thousands of people watch competitive gaming tournaments on Alphabet’s YouTube or Amazon’s Twitch, esports businesses have struggled to convince them to spend money online. Investor and sponsor funds have also dwindled\u00a0broadly in recent years.<\/p>\n
Building infrastructure for sports-like tournaments has also\u00a0proven prohibitive\u00a0for many.<\/p>\n
Comcast Spectacor, owner of the now-defunct Philadelphia Fusion Overwatch League team, pivoted its $50 million esports arena into a multiuse, dining and retail facility.<\/p>\n
Saudi Arabia does have a long-term plan to make the Esports World Cup profitable but it\u2019s still being worked out, Prince Faisal said.<\/p>\n
Revenue from the video-game market in Saudi Arabia, the UAE and Egypt is forecast to reach $2.9 billion in 2028 from an expected $2.1 billion this year, according to Niko Partners.<\/p>\n
The real value may come from Saudi Arabia\u2019s youthful population.<\/p>\n
Almost 70% of the kingdom\u2019s people are considered gamers, meaning they play or watch video games at least twice a week.<\/p>\n
\u201cFive years from now, none of them will look at esports as a leisure activity but as an opportunity to pursue a career,\u201d said Fadi Hilani, a senior academic and research fellow at the National Council on US-Arab Relations, who studies esports.<\/p>\n
\u201cThat\u2019s a wise investment.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
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