Merak Capital, a leading technology-focused investment firm, has launched its $80 million (306 million Saudi Riyals) gaming fund and accelerator program.
The initiative, designed to support early-stage gaming startups, was unveiled at the VOV Gaming Centre in Riyadh, to encourage innovation and accelerate the growth of the gaming industry in Saudi Arabia and the broader MENA region.
The program, branded “Exel by Merak” will support a wide range of gaming-related startups, including developers, gaming technologies, publishing platforms, and services. This holistic approach offers a mix of equity investment, mentorship, legal and relocation assistance, and access to tools and resources. These startups will aim to develop at least 15 commercially viable and monetizable games, contributing to Saudi Arabia’s ambition to become a premier global gaming hub.
“Exel by Merak and its gaming accelerator program is a testament to Merak Capital’s commitment to building a vibrant gaming ecosystem in Saudi Arabia,” said Abdullah Altamami, founder and CEO of Merak Capital.
Merak provides selected startups with equity investment as well as tailored resources and strategic support essential for their success. “By offering mentorship from world-class experts, support services from gaming industry experts, and access to a leverageable network, we aim to empower these startups to drive innovation and establish Saudi Arabia as a global hub for gaming excellence,” Altamami added.
Key Highlights
- $80 Million Fund: Merak Capital launches a gaming fund to support the gaming sector in the Asia, Middle East, and North Africa (MENA) regions.
- Exel by Merak: A comprehensive accelerator program targeting early-stage gaming startups, with a focus on game development, technologies, and publishing platforms.
- 15-20 Startups: Merak Capital aims to support 15 to 20 startups, aiming for 15 commercially viable games.
- Global Reach: The accelerator program welcomes both local and international startups, contributing to Saudi Arabia’s goal of becoming a global gaming hub.
Supporting Saudi’s Gaming Vision
In its first batch, Exel by Merak will target both local and international startups that are ready to relocate to Saudi Arabia. The accelerator will guide them through a 14-16 week program, which includes a virtual bootcamp, core accelerator activities, and a demo day. Startups will benefit from mentorship by global experts and support from industry professionals.
Faisal Sedrani, Vice President of Exel by Merak, emphasized the broader impact of the program. “The first batch of the accelerator will aim to create more than 120 jobs in the Saudi gaming industry, and the graduates are envisioned to contribute more than 100 million Saudi Riyals to the Saudi GDP, which will increase significantly in the planned next 3 accelerator batches.”
Thriving Gaming Market
The gaming industry is experiencing rapid global growth, with an estimated 3.32 billion gamers worldwide in 2024. The global market is projected to reach a value of US$665.77 billion by 2030. Saudi Arabia, with its young, tech-savvy population, is uniquely positioned to capitalize on this growth.
The Kingdom is home to over 24 million gamers, representing roughly 67% of the population. The average spend of Saudi gamers surpasses that of their U.S. counterparts, highlighting the market’s potential.
Key Gaming stats
- Global Gaming Revenue (2024): The gaming industry is projected to generate an impressive $282 billion in revenue by the end of 2024.
- Active Video Gamers Worldwide (2024): As of 2024, the global gaming community has grown to include approximately 3.32 billion active gamers.
- Global Gamers by Region (2024): Asia dominates the gaming scene with 1.48 billion gamers, followed by Europe with 715 million players.
- Growth of Gaming in MENA: The MENA gaming market is projected to reach US$15.32 billion in 2024, with an annual growth rate of 7.65%, expected to hit US$22 billion by 2029.