Saudi Arabia has signed a memorandum of understanding to strengthen the pipeline for video game startups, reinforcing its ambition to build a globally competitive gaming and esports industry.

The agreement brings together key national institutions and investment partners to support early-stage developers, expand access to funding and accelerate the commercialisation of locally developed games.

The initiative focuses on creating a structured pathway for startups, from skills development and incubation through to financing and international market access.

By aligning public-sector support with private capital and industry expertise, the programme seeks to reduce barriers faced by emerging studios and encourage innovation across the gaming value chain.

Officials involved in the agreement said the partnership will prioritise training and mentorship, help startups refine business models and connect founders with global publishers and platforms.

The MoU also supports the development of professional standards and talent pipelines to ensure long-term sustainability in a fast-growing and highly competitive global sector.

The move forms part of Saudi Arabia’s wider economic diversification strategy, which identifies gaming and digital entertainment as high-growth industries capable of generating skilled jobs and attracting foreign investment.

With a young, tech-savvy population and increasing government backing, the Kingdom is positioning itself as a regional centre for game development and esports.

Industry observers say that by strengthening support for startups at an early stage, Saudi Arabia is laying the groundwork for a more resilient and innovative gaming ecosystem, with the potential to compete internationally and contribute meaningfully to the non-oil economy.