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Saudi Arabia’s hosting Olympic Esports Games 2025 underlines the Kingdom’s economic and social transformation

History was made in July when the International Olympic Committee decided to create Olympic Esports Games, with the first edition being set to be held in 2025 in Saudi Arabia. (AFP/File Photo)
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Updated 07 October 2024
Reem Walid
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Saudi Arabia’s hosting Olympic Esports Games 2025 underlines the Kingdom’s economic and social transformation

  • Kingdom hosting the Olympic Esports Games will position the Middle East as a major player in digital entertainment, say experts
Updated 07 October 2024
Reem Walid

RIYADH: History was made in July when the International Olympic Committee decided to create Olympic Esports Games, with the first edition being set to be held in 2025 in Saudi Arabia.

The event is set to be a game-changer for competitive gaming globally, with the industry’s value expected to reach over $1 trillion by 2032, growing at a compound annual growth rate of 11.60 percent during the forecast period 2023-2032, according to market research firm Inkwood Research.

With this event expected to be held at the same level as the Winter and Summer Olympics, it will position the Middle East as a major player in digital entertainment, leveraging the country’s young, tech-savvy population and strong government support.

The Esports Olympics is also set to attract international talent and showcase advanced gaming technology, highlighting the region’s potential as a global esports hub.

Impact and opportunities on global esports industry

According to Shahid Khan, partner and global head of Media, Entertainment, Sports, and Culture at international management consulting firm Arthur D. Little, the hosting of the Esports Olympics in the Kingdom legitimizes the pastime on an international stage and aligns it more closely with traditional sports.

“This event will likely accelerate investment in esports infrastructure, not just in Saudi Arabia but across the Middle East and beyond. It presents opportunities for game developers, tournament organizers, and esports teams to expand their presence in the region. Additionally, it could spark increased interest in esports careers among young people in the Middle East,” Khan said.

The substantial prize pool of $62.5 million, will undoubtedly elevate the profile of esports in the Middle East and globally, he added.

“This event could reshape perceptions of esports, particularly in regions where it’s still gaining mainstream acceptance. It positions Saudi Arabia as a serious player in the global esports landscape and could inspire other countries in the region to invest more heavily in their esports ecosystems,” the Arthur D. Little partner said.

Firms contributing to the growth of the gaming and esports industry in the region

Numerous companies in Saudi Arabia and the Middle East are actively participating in advancing and prospering the gaming and esports sector across the Kingdom and the wider region.

One such firm is Dubai-headquartered Shaffra.

The technology, information and Internet company is looking to redefine productivity and innovation, crafting a future where work is not just a place you go, but a space you shape and share, according to the company’s co-founder and Chief Technology Officer Marc Wehbi.

He told Arab News: “Our AI-driven Workforce solutions are tailored to handle complex tasks such as managing in-game analytics, optimizing player performance, and generating engaging content.”

Wehbi went on to say that through the integration of advanced technologies, Shaffra’s objective is to strengthen the region’s esports infrastructure and position it as a global leader in technological innovation and competitive gaming.

Another illustration of this is MENATech Entertainment, a technology company with projects related to the video games and education sector.

The firm’s CEO Mario Perez told Arab News that his firm recognizes the government’s significant push to cultivate a strong gaming and esports environment, complemented by private initiatives that open a wide range of opportunities for consumers.

“By leveraging our global experience and success, particularly through initiatives like Amazon UNIVERSITY Esports, which has seen a 57 percent growth in student participation in Saudi Arabia, we aim to foster talent and enhance the esports ecosystem in the region,” he said.

Perez explained that his firm has expanded its reach to over 220 universities across the region, which contributes to the region’s economic and cultural upliftment and helps position Saudi Arabia and the broader Middle East as leading players in the global esports arena.

Similarly, the Sports Lead Partner at PwC Middle East Nick Oakley shed light on how the firm has been extensively involved in the esports sector for the past five years and have delivered several strategic projects which have had a real impact in growing the industry.

“We are continuing to collaborate with key partners in the industry, including the Saudi Esports Federation, on various joint initiatives,” Oakley said.

Managing consulting company Kearney is also seen to be contributing to the rise of the gaming and esports industry, as is global law firm Reed Smith.

According to Jamie Ryder, partner at Entertainment and Media Industry Group at Reed Smith, the company has team members throughout the US, Europe, the Middle East and Asia with gaming and esports expertise which allows it to provide advice and guidance in line with international best practice and learnings from different territories.

“Our footprint allows us to combine international best practice with our local experience which is always crucial in understanding how and why things may need to be done differently in different territories,” Ryder told Arab News.

Arthur D. Little’s Khan said the benefits of hosting major events, such as the Esports Olympics, help Saudi Arabia in a financial regard – with an increase in tourism – but also enhance the Kingdom’s image as a modern, tech-savvy nation.

“The gaming and esports industry can play a crucial role in realizing Vision 2030 goals by fostering innovation, attracting foreign investment, and creating high-skilled jobs for young Saudis. Moreover, as a digital-first industry, it supports the Kingdom’s ambitions to become a leading digital economy,” Khan said.

From MENATech Entertainment’s perspective, Saudi Arabia hosting the Esports World Cup, Esports Olympics and the construction of Qiddiya City Esports Arena are “monumental steps toward” realizing the Kingdom’s digital economy goals.

Pérez said: “KSA’s esports market is projected to soar to $6.8 billion by 2030, with the rollout of the National Gaming and Esports Strategy expected to contribute SR50 billion to the nation’s GDP, create 39,000 new jobs, generate over 30 competitive games within local studios and make KSA one of the top three nations in professional esports.”

The CEO went on to say how these initiatives are not just milestones in realizing Vision 2030 but also elevate Saudi Arabia’s global status, embedding esports into the cultural and economic fabric of the region, driving tourism, infrastructure development, and international investment.

Hadi Hammoud, partner in the Communications, Media, and Technology Practice at Kearney Middle East and Africa, argued that as Vision 2030 focuses on both economic and social transformation, the gaming and esports industry can play a crucial role in both.

“Socially, it enhances the Quality-of-Life Program by fostering a dynamic, youth-driven culture and promoting digital literacy. By aligning with Vision 2030, the industry supports economic diversification, creates new opportunities for young Saudis, and positions Saudi Arabia as a leader in the global digital economy,” he said.

Topics: main Saudi Olympic

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Saudi Arabia, UAE poised to become trade ‘super-connector hubs,’ WEF panel hears

Updated 15 sec ago
Arab News
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Saudi Arabia, UAE poised to become trade ‘super-connector hubs,’ WEF panel hears

  • Agility’s Henadi Al-Saleh highlights that innovation, investment help countries to capitalize on disruption in global trade
Updated 15 sec ago
Arab News

LONDON: Saudi Arabia is on track to emerge as a “super-connector hub,” leveraging ongoing global trade disruption to its advantage, according to experts speaking at the World Economic Forum in Davos on Thursday.

Henadi Al-Saleh, chair of the board of directors at Agility, a global leader in supply chain services, highlighted the Gulf Cooperation Council’s significant investments in infrastructure as a driving force behind this transformation.

She said: “(In) the past few years, the level of activity, especially around cargo, has increased several fold.

“If I look at the GCC, where we have invested in warehouses, and at the Emirates in Saudi Arabia, one of our key platforms, (they are) set to become super-connector hubs.

“These countries are investing in infrastructure, doubling down, and the level of activity is increasing.”

Al-Saleh identified digitalization as a key value in this development, saying that “in a time with so much uncertainty, having that clarity and understanding, even when changes take place, it gives me visibility. (With the digital tools) I know what the rules (are) and (how) I need to adjust.”

She added: “That’s one critical aspect in which you see these super hubs benefiting.”

While the level of trade has continued to grow since the end of the pandemic, socioeconomic and political factors have continued to disrupt industry.

Experts have said that US President Donald Trump’s second term is expected to exacerbate the disruption, with the president supporting potential trade tariffs on multiple exporting nations.

Chile’s Minister of Foreign Affairs Alberto van Klaveren acknowledged the challenges but also pointed to opportunities arising from these shifts.

He said: “There are possibilities. Some economies are opening up. We signed the CEPA Agreement (Comprehensive Economic Partnership Agreement) with the Emirates. We are interested in Saudi Arabia.”

He explained that the importance of diversification was not only in export markets but also in the types of goods and services traded.

However, experts cautioned that ongoing trade disruption could significantly impact the global energy transition, particularly in the green energy sector.

Al-Saleh said: “There are certain segments of people, businesses and technologies (in the green energy market) that are paying a price.

“But this is where, I think, from the private sector, it’s incumbent upon them to continue. This is irrespective of what happens today in terms of tariffs. There is a long view, and we need to all manage towards that long view.”

According to World Trade Organization data, every nation relies on imports and exports for at least 25 percent of its goods. Given this interdependence, Al-Saleh argued, trade will remain indispensable despite ongoing disruption.

She said: “You need to focus on being agile and resilient. Those are critical elements, and the way to become agile and resilient is really to diversify and invest in technology.”
 

Topics: WEF 25 Henadi Al-Saleh Alberto van Klaveren

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Saudi Arabia taking bold steps to test smart technologies as it embraces AI, says industry minister

Updated 24 January 2025
Mustafa Abu Sneineh
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Saudi Arabia taking bold steps to test smart technologies as it embraces AI, says industry minister

  • Kingdom has embarked on a transformation of traditionally industrial cities into modern smart cities, Bandar Alkhorayef tells World Economic Forum
  • Nation’s businesses are increasingly adopting new technologies to help enhance productivity, he adds
Updated 24 January 2025
Mustafa Abu Sneineh

DAVOS: Saudi Arabia is becoming a regional hub for testing the use of new technologies as efforts to diversify the national economy continue, the minister of industry and mineral resources, Bandar Alkhorayef, told the World Economic Forum in Davos on Thursday.

The Kingdom has established national organizations such as the Saudi Data and AI Authority and the Future Factories Program to regulate and help businesses adopt new technologies that utilize artificial intelligence, machine learning, 3D printing and robotics, he added.

This smart infrastructure market is projected to be worth $2 trillion within the next 10 years, up from an estimated $900 billion in 2024, driven by growth in the integration of physical and digital industrial operations.

Alkhorayef said Saudi Arabia places a priority on manufacturing and has embraced the use of the latest technologies in sectors such as renewable energy and electric vehicles, as the Kingdom embarks on ambitious plans to transform traditionally industrial cities into modern smart cities.

“The investors coming to these cities (will find) a ‘plug-and-play’ kind of support,” he said, as authorities take steps to attract businesses and global talent to work and invest, and to establish the country as a regional hub for technological research, development and innovation.

The Kingdom’s Future Factories Program, for example, aims to provide training initiatives and loans to help 4,000 factories adopt new technologies, embrace automation and improve manufacturing efficiency.

“We’re very bold when it comes to testing new ideas and technologies,” Alkhorayef added, which makes it “interesting for new players to see (Saudi Arabia) as a place where they can not only seek financing or investment but also a place to test and pilot certain ideas.”

Such endeavors are endorsed by some of the country’s biggest corporations, including the chemical manufacturing company SABIC, the petroleum company Aramco, and the mining giant Maaden. Aramco, for example, has already adopted new technologies, including AI, to enhance productivity and reduce carbon dioxide emissions.

Alkhorayef was speaking during a WEF discussion titled “Next-Gen Industrial Infrastructure.” The other panelists included representatives of the African Union Commission, businesses and consulting firms.

Currently, up to 50 percent of Saudi Arabia’s deep-tech startups are focused on the development of AI or the Internet of Things, Alkhorayef said, as the country increasingly adopts digitalization in the public and private sectors.

The Saudi Data and AI Authority, established in 2019 to regulate and promote the national agenda for a data-driven economy, has said that AI is making significant contributions to operational efficiency. In 2023, global spending on AI exceeded $120 billion, with more than 72 percent of organizations incorporating the technology into at least one business area.

“We believe that adopting technology in the mining sector will lead to safer, more productive and energy-efficient mines,” Alkhorayef said by way of an example, adding that it is essential that authorities consider environmental protection as they seek to strike the right balance between the interests of investors and the local community.

“Making digitalization accessible is an important part of what we do (in the Kingdom),” he said. “It involves regulation, cybersecurity, human capital training, and investing in incubators to work and learn.

“In every sector, such as food, energy or mining, (we always ask) the question of how technology could be helpful.”

Topics: WEF 2025 artificial intelligence (AI) Saudi Authority for Data and Artificial Intelligence (SDAIA)

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Saudi economic success driven by ‘key North Star, not egos,’ says finance minister at WEF

Updated 59 min 38 sec ago
DANIEL FOUNTAIN
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Saudi economic success driven by ‘key North Star, not egos,’ says finance minister at WEF

  • Mohammed Al-Jadaan highlights Kingdom’s shift from short-term budgets to longer-term fiscal planning, ensuring clear priorities and disciplined spending
  • Transformation driven by clear decisions and significant investments led to strong economic performance, adds economic planning chief Faisal Al-Ibrahim
Updated 59 min 38 sec ago
DANIEL FOUNTAIN

DAVOS: Saudi Finance Minister Mohammed Al-Jadaan on Thursday said that the Kingdom’s economic planners were being driven by their “North Star” and not egos as they look to maintain growth in the economy.

Speaking on a panel about the Saudi economy at the annual meeting of the World Economic Forum, Al-Jadaan highlighted Saudi Arabia’s shift from short-term budgets to longer-term fiscal planning, ensuring clear priorities and disciplined spending.

He said that there was flexibility and a readiness within the government to adapt plans based on global circumstances. “I’ve said this repeatedly, we don’t have egos. We are willing to change depending on circumstances and we will continue to do that. We will prioritize what matters,” he said.

“Our key North Star is what is driving us, and the tools can change, the means can change. It’s really that North Star that we are looking forward to,” he said.

He emphasized the progress and resilience of Saudi Arabia’s economy under Vision 2030, noting that the plan had mobilized the entire nation — government, businesses, right down to citizens — toward clear, long-term goals.

He attributed this success to visionary leadership, tough decision-making and consistent execution, adding that this approach could be a universal “recipe” for unlocking global potential.

On the Saudi-US relationship, Al-Jadaan highlighted its strategic importance over the past eight decades, emphasizing that Saudi Arabia had maintained strong economic, diplomatic and security ties with Washington, regardless of the administration in power, whether Republican or Democrat.

He described the partnership as a “win-win situation” that remained vital and was likely to endure into the foreseeable future.

Al-Jadaan was joined on the panel by Saudi Minister of Economy and Planning Faisal Al-Ibrahim, who attributed the Kingdom’s strong economic performance to a first wave of transformation driven by clear, courageous decisions and significant investments, not only financially but also in terms of effort and planning.

Looking ahead, Al-Ibrahim stressed that the next phase of Vision 2030 would focus on addressing more complex challenges, particularly in enabling the private sector.

He emphasized the goal of increasing the private sector’s contribution to 65 percent of GDP by fostering collaboration, co-developing opportunities and creating an environment where private enterprises could take the lead in driving economic growth.

Key priorities include enhancing institutional capabilities, ensuring policy clarity and predictability, and addressing barriers to innovation-driven entrepreneurship, he said.

Al-Ibrahim also underlined the government’s commitment to working closely with the private sector, noting that ministers and their teams often worked long hours to respond to and engage with private enterprises. This collaborative approach, he said, was deeply embedded in the country’s Vision 2030 blueprint for economic transformation.

IMF Chief Kristalina Georgieva, who was also on the panel, praised Saudi Arabia’s transformation efforts, highlighting the country’s ability to create an appealing environment for business and tourism.

She commended its forward-thinking approach in engaging the private sector to diversify experiences and attract repeat visitors. Referring to her visit to AlUla, she said: “I didn’t know what to expect, but I came out thinking it was great we decided to open our regional office in Riyadh.”

Georgieva also noted Saudi Arabia’s strategic planning to host global events and foster economic growth. She described the country as a “good example of transformation” that others could look to for inspiration in creating dynamic, sustainable growth through proactive planning and investment.
 

 

Topics: WEF 25 Mohammed Al-Jadaan Saudi Vision 2030 Editor’s Choice

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Lebanon’s inflation rate drops to 45% in 2024, marking a return to double-digit figures

Updated 23 January 2025
MIGUEL HADCHITY  
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Lebanon’s inflation rate drops to 45% in 2024, marking a return to double-digit figures

  • Monthly inflation also increased by 2.38% in December, marking the third consecutive monthly rise
  • Key contributors included miscellaneous goods and services, which rose 39.69% annually
Updated 23 January 2025
MIGUEL HADCHITY  

RIYADH: Lebanon’s economic landscape showed signs of stabilization in 2024, with inflation rates returning to double-digit levels after three years of hyperinflation that had exceeded 200 percent.

The annual inflation rate stood at 45.24 percent last year, a substantial drop from the staggering 221.3 percent recorded in 2023, according to data from the Central Administration of Statistics.

Lebanon has endured prolonged economic instability, with the Lebanese lira losing 90 percent of its value since the crisis began in 2019. The drop in inflation aligns with the International Monetary Fund’s October forecast, which projected inflation in the Middle East and North Africa region to ease to 3.3 percent in 2024.

Last year represented a period of relative calm in terms of price volatility. Monthly inflation indices revealed a deceleration in price growth. The index for December reached 30,936.02, compared to 30,147.41 in November, showing a modest increase compared to the unpredictable fluctuations of prior years.

The slowdown in inflation is largely due to the stabilization of the Lebanese lira, driven by Banque du Liban’s monetary policies since 2023. By the spring of last year, the exchange rate had settled at around 89,500 Lebanese liras per dollar, following a sharp rise from 40,000 to 140,000 earlier in 2023.

This stability helped bring annual inflation below 100 percent in April, reaching 18.1 percent by December, though the same month’s inflation rose slightly from November’s 15.38 percent.

Monthly inflation also increased by 2.38 percent in December, marking the third consecutive monthly rise, following 2.02 percent in October and 2.30 percent in November. 

Key contributors to inflation in December included miscellaneous goods and services, which rose 39.69 percent annually, education fees at 31.27 percent, and health care at 22.93 percent. Only communications and furniture saw price declines at 2.99 percent and 1.99 percent, respectively.

Lebanon’s state-owned telecom firm, Ogero, said it is working to restore and expand its connectivity. The firm’s Chairman and Director General Imad Kreidieh announced in a live broadcast on Jan. 21 that the company’s expansion plans will resume, supported by funding from multiple donors.

North Lebanon recorded the highest monthly increase in December at 3.79 percent, followed by Beirut and Nabatieh at 3.59 percent, and South Lebanon at 2.97 percent.

The drop in inflation offers some relief to the Lebanese people, but with the election of former army commander Joseph Aoun as president on Jan. 9 and the appointment of the Chief Judge of the International Court of Justice, Nawaf Salam, as prime minister on Jan. 13, the need for comprehensive reform remains urgent.

The political breakthrough has also sparked a rally in Lebanon’s government bonds, which have nearly tripled in value since September. The election of Aoun, following 12 failed attempts to choose a president, has raised hopes that Lebanon might finally address its economic challenges. 

Most of the country’s international bonds, in default since 2020, rallied further after Aoun’s election, rising by nearly 0.9 cents on the dollar to around 16 cents — a modest recovery that underscores investor optimism despite Lebanon’s ongoing struggles.

Topics: Lebanon lebanon economy Inflation

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Saudi Arabia’s Kingdom Holding terminates $1.8bn fund deal with Sumou, JEC

Updated 23 January 2025
MOHAMMED AL-KINANI
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Saudi Arabia’s Kingdom Holding terminates $1.8bn fund deal with Sumou, JEC

Updated 23 January 2025
MOHAMMED AL-KINANI

JEDDAH: Saudi-based conglomerate Kingdom Holding Co. has confirmed the termination of its SR6.8 billion ($1.8 billion) fund agreement with Sumou Holding Co. and Jeddah Economic Co., following a mutual decision by all parties.

In a filing with the Tadawul stock exchange, KHC said the move, effective Jan. 23, imposes no obligations on any party, adding that this decision was reached as the primary purpose of the fund is no longer applicable.

Progress continues on the fund’s main asset, Jeddah Tower, with the Saudi Binladin Group reinstated and work resuming at an accelerated pace. Technical and consulting teams are now in place and have commenced on-site operations.

The release added that the Alinma Jeddah Economic City Fund, fully owned by JEC – an associate firm – remains operational, saying that KHC continues to support the project’s development.

In July, the three firms signed an agreement to establish a new fund to acquire the Alinma Jeddah Economic Fund, whose investors would include the three companies, with KHC owning 40 percent of the new fund.

In a Tadawul announcement, KHC said last year that the financial impact of the agreement would be disclosed once JEC completed updating its accounting records.

The latest announcement said the concrete was poured for the 64th floor of the tower in the presence of the partners, headed by Prince Alwaleed bin Talal, KHC’s chairman of the board of directors.

It added that the partners were giving their utmost attention and oversight to this global symbol, which aligns with Saudi Vision 2030.

Jeddah Economic City aims to showcase its pioneering ambitions through the Jeddah Tower, envisioned as a new wonder of the world and a symbol of Jeddah’s renaissance. The tower also reflects the city’s rich commercial heritage spanning thousands of years, according to the company’s website.

Set to stand over 1 km. tall, the tower will be the centerpiece of the Jeddah Tower Waterfront District.

Topics: Kingdom Holding Co

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