Saudi Arabia is becoming one of the fastest-growing gaming hubs in the world through a combination of ambitious projects and strategic investment, according to a panel of Saudi policymakers and regulators at the Next World Forum in Riyadh.
Organised by the Saudi ESports Federation, the two-day event, which began on Wednesday, gathers leaders from the gaming world to discuss the future and opportunities provided by the industry in Saudi Arabia.
As part of the opening session, federation president Prince Faisal bin Bandar described the growth of the sector as being driven by young people in Saudi Arabia.
“We have a population of 34-odd million in Saudi Arabia and 63 per cent, or approximately 21 million, consider themselves gamers," he said.
"So this is a community of gamers and what we are doing is something that they've been looking for and striving towards. This is not just a passion, but it's also a work path and it is what they want to do on a daily basis.
“They want the opportunity to work hand in hand with government organisations and the private sector to really build something that will showcase their skills on a global stage."
Launched in 2020, the latter went on to raise more than $30 million for various humanitarian efforts, including the global Covid-19 vaccine distribution drive.
Light and easy
To harness growth of the industry in Saudi Arabia, a sound regulatory framework needs to be in place, said Mohammed bin Saud Altamimi, governor of the Communications and Information Technology Commission.
The regulatory authority launched an initiative in February, Ignite, which aims to increase the size of what he said is the country's $3 billion digital media sector, through a "holistic” suite of policies born out of discussions with the local gaming industry.
"When it comes to the gaming market size right now, according to our analysis in Ignite, it is $700 million and we are expecting it will increase more than 250 per cent by 2030," he said.
To fulfil that potential, Altamimi said a “light touch” is required when forming industry regulations.
"We are following two guiding principles. The first is collaboration with the private sector and the second is transparency," he said. “We conducted more than 100 bilateral meetings with the private sector, both locally and internationally.
"We had a two-stage consultation process to make sure that we truly listen to the private sector. So from that came the light touch regulation, which means, for example, there will be no licensing or registration. It will be easy doing business in Saudi Arabia.”
Mega gaming hubs and cyberpunk streets
Also eyeing the gaming sector are representatives from entertainment development projects Neom and Qiddiya.
The heads of both were at the Next World Forum to describe how the gaming sector will feature within the Saudi mega projects.
It is projected to provide homes for nine million people.
"With 40 per cent of Neom employees, mostly Saudis, all in their late twenties and thirties, we have the right generation to not only play the games but design them as well," Al Nasr said.
"I am very sure The Line will host one of, if not the largest gaming holding businesses in the world. I am pretty sure it will be the capital of gaming."
A rendering of Qiddiya City. The planned entertainment development located on the outskirts of Riyadh will be home to the kingdom's first theme park. Photo: Saudi Tourism
With Qiddiya currently in development on the outskirts of Riyadh, the project's managing director Abdullah Aldawood said the entertainment destination will have a neighbourhood "designed by gamers for gamers."
"It's about creating a space for gamers and esports athletes. Just imagine you are in an environment where you walk into cyberpunk streets and popular video game Final Fantasy castles," he said.
"We want esports athletes, from [those in] Japan, South Korea and the Philippines to Brazil, to not only dream of competing to play but live in that district in Saudi Arabia."
Playing the long game
While these lofty visions are being developed, Savvy Games Group — an investment company owned by Saudi Arabia's Public Investment Fund — has already begun laying some of the ground work by acquiring leading esports event organising company ESL Gaming and online platform Faceit.
"That combination of the number one off-line professional esports tournament organiser and broadcaster with the number one online tournament provider has made us the world's largest esports organisation," said Brian Ward Savvy Games Group chief executive.
"As part of their effort we have, roughly, 50 people here employed in Saudi Arabia building a first-class studio and competitive facilities which will eventually become one of the three global hubs for both tournament play and broadcasting of international esports events across the world."
Prince Faisal is confident the various policies and investments outlined will bear fruit, as building Saudi Arabia's esports industry is a long game.
“We have the opportunity of being able to look at that long-term outlook and work with partners, not just in Saudi, but around the world and do what's best for the industry as a whole,” he said.
“As the industry goes up, we will all come up.”
Abu Dhabi's soon to open e-sports and virtual-reality hub Pixoul Gaming — in pictures
Pixoul Gaming at Al Qana, Abu Dhabi. All photos: Pixoul Gaming
It will be one of the largest esports and VR hubs in the Middle East.
Pixoul Gaming aims to attract professional and amateur gamers to the capital by offering something for everyone.
Gamers can take part in the first certified Esports Academy in the region.
Pixoul Gaming will also have a unique esports bar where fans can watch global gaming events while also enjoying food and drinks.
There will be a zone dedicated to retro gaming.
Why it pays to compare
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
'Brazen'
Director: Monika Mitchell
Starring: Alyssa Milano, Sam Page, Colleen Wheeler
Tissue re-implanted at a time of the patient’s choosing
Full hormone production regained within 4-6 months
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
The line up
Friday: Giggs, Sho Madjozi and Masego
Saturday: Nas, Lion Bbae, Roxanne Shante and DaniLeigh
Sole DXB runs from December 6 to 8 at Dubai Design District. Weekend pass is Dh295 while a one day pass is Dh195. Tickets are available from www.soledxb.com
Brunch has been around, is some form or another, for more than a century. The word was first mentioned in print in an 1895 edition of Hunter’s Weekly, after making the rounds among university students in Britain. The article, entitled Brunch: A Plea, argued the case for a later, more sociable weekend meal. “By eliminating the need to get up early on Sunday, brunch would make life brighter for Saturday night carousers. It would promote human happiness in other ways as well,” the piece read. “It is talk-compelling. It puts you in a good temper, it makes you satisfied with yourself and your fellow beings, it sweeps away the worries and cobwebs of the week.” More than 100 years later, author Guy Beringer’s words still ring true, especially in the UAE, where brunches are often used to mark special, sociable occasions.
SNAPSHOT
While Huawei did launch the first smartphone with a 50MP image sensor in its P40 series in 2020, Oppo in 2014 introduced the Find 7, which was capable of taking 50MP images: this was done using a combination of a 13MP sensor and software that resulted in shots seemingly taken from a 50MP camera.
Mark Chahwan, co-founder and chief executive of robo-advisory firm Sarwa, forecasts that Generation Alpha (born between 2010 and 2024) will start investing in their teenage years and therefore benefit from compound interest.
“Technology and education should be the main drivers to make this happen, whether it’s investing in a few clicks or their schools/parents stepping up their personal finance education skills,” he adds.
Mr Chahwan says younger generations have a higher capacity to take on risk, but for some their appetite can be more cautious because they are investing for the first time. “Schools still do not teach personal finance and stock market investing, so a lot of the learning journey can feel daunting and intimidating,” he says.
He advises millennials to not always start with an aggressive portfolio even if they can afford to take risks. “We always advise to work your way up to your risk capacity, that way you experience volatility and get used to it. Given the higher risk capacity for the younger generations, stocks are a favourite,” says Mr Chahwan.
Highlighting the role technology has played in encouraging millennials and Gen Z to invest, he says: “They were often excluded, but with lower account minimums ... a customer with $1,000 [Dh3,672] in their account has their money working for them just as hard as the portfolio of a high get-worth individual.”
COMPANY PROFILE
Name: Lamsa
Founder: Badr Ward
Launched: 2014
Employees: 60
Based: Abu Dhabi
Sector: EdTech
Funding to date: $15 million
Contracted list
Ashton Agar, Alex Carey, Pat Cummins, Aaron Finch, Peter Handscomb, Josh Hazlewood, Travis Head, Usman Khawaja, Nathan Lyon, Glenn Maxwell, Shaun Marsh, Mitchell Marsh, Tim Paine, Matt Renshaw, Jhye Richardson, Kane Richardson, Billy Stanlake, Mitchell Starc, Marcus Stoinis, Andrew Tye.
Opening Rugby Championship fixtures:Games can be watched on OSN Sports Saturday: Australia v New Zealand, Sydney, 1pm (UAE) Sunday: South Africa v Argentina, Port Elizabeth, 11pm (UAE)
1) Organ donors can register on the Hayat app, run by the Ministry of Health and Prevention
2) There are about 11,000 patients in the country in need of organ transplants
3) People must be over 21. Emiratis and residents can register.
4) The campaign uses the hashtag #donate_hope
Which honey takes your fancy?
Al Ghaf Honey
The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year
Sidr Honey
The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest
Samar Honey
The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments
