Saudi Arabia expands its sportswashing ambitions to the world of gaming

Saudi Arabia has grand plans to become a powerhouse in the world of eSports and gaming.

The kingdom’s sovereign wealth fund – a $500bn entity chaired by Crown Prince Mohammed bin Salman – announced a new gaming company in January 2022 with the intention of staking its claim in the booming industry.

The Savvy Gaming Group went on to purchase ESL Gaming – one of the largest independent eSport entities in the world – from Sweden-based Modern Times Group in an all-cash transaction of $1.05bn. It also purchased FACEIT, one of the biggest tournament organizers in eSports, for $500m, and later merged the two entities to form the ESL FACEIT Group.

“ESL and FACEIT have both been fundamental to the incredible growth of eSports and competitive gaming globally, with over 30 years combined in the industry,” the newly-formed ESL FACEIT Group said in a press release. “Together, they will form a new driving force in the fast-growing but fragmented eSports landscape at a critical time in the evolution of the industry.”

Weeks later, Saudi launched a new billion-dollar initiative to transform the kingdom into a leading digital entertainment hub. The initiative, aptly named Ignite, is expected to fund the development of new games, as well as infrastructure for gaming studios and arenas. The kingdom also revealed plans to establish a big budget games studio in Neom, the proposed futuristic $500bn mega city in the Saudi desert. The studio, which is expected to produce and distribute games by a major publisher, would be the first of its kind in the Middle East.

Saudi’s latest investments in gaming come on the heels of the kingdom’s acquisition of Japanese game company SNK in 2020, and its $3bn investment in shares of game companies such as