With half of Saudis turning gamers, eSports to add $21bn to GDP

With half of Saudis turning gamers, eSports to add $21bn to GDP
Prince Faisal bin Bandar bin Sultan. (Arab News)
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Updated 18 November 2021

With half of Saudis turning gamers, eSports to add $21bn to GDP

With half of Saudis turning gamers, eSports to add $21bn to GDP
  • Prince Faisal bin Bandar bin Sultan, president of the Kingdom’s esports federation, said the sector has the potential to contribute billions of dollars to the local economy
  • Analysts predict that global revenues from esports will grow to more than $1.08 billion in 2021 and will surpass $1.6 billion by 2024

RIYADH: Electronic gaming, or egaming, is an increasingly popular activity, with a recent study suggesting that 50 percent of the Saudi population consider themselves regular gamers.

A frequent criticism of electronic gaming is that it is a waste of time with little or no economic value. However Prince Faisal bin Bandar bin Sultan, president of the Saudi Arabian Federation for Electronic and Intellectual Sports, believes e-gaming and eSports, which is the term for competitive video gaming, have the potential to contribute billions of dollars to business, job creation and gross domestic product in the Kingdom.

“When you talk about the potential in the Saudi market, one of the first things that I think back to is that we did a study with the Ministry of Sports and more than 23, 24 percent of the population considers themselves avid gamers who play more than once a week,” the prince told Arab News on Tuesday at the Future Investment Initiative Forum in Riyadh.

“About 23, 24 percent-plus consider themselves regular gamers who play more than once a month. That’s almost 50, if not more than 50, percent of the population that consider themselves gamers.”

The prince predicts that the sector will contribute about 1 percent of Saudi GDP by 2030, which might seem a small proportion but the amount of money potentially involved is significant.

“Do we really want to say 1 percent?” he asked. “Is that really a number? It sounds really small. They said, ‘That is worth more than SR80 billion ($21 billion),’ and I said I’ll go with 1 percent. That sounds like a really good number to me, and that’s both from direct and indirect job creation and GDP creation through the gaming and e-sports industry.”

According to the Global Esports and Live Streaming Market Report, published in March by games and esports analyst Newzoo, global revenues from esports, or competitive video gaming, are projected to grow to more than $1.08 billion in 2021, an increase of 14 percent on the previous year.
 

Market and consumer data company Statista predicts that global esports revenue will surpass $1.6 billion by 2024.

Like their counterparts in other countries, a growing number of Saudis are taking part in esports and streaming their gaming activities on platforms such as YouTube and Twitch. Audience numbers are also growing.

Video gaming and esports are known for fostering creativity, collaboration and leadership, skills that are highly valued in the business world. Consequently, esports and egaming can provide a path to a range of careers and employment opportunities. And as the esports sector grows, these could increasingly include opportunities for tournament organizers.

The esports industry in Saudi Arabia has experienced impressive growth in the past few years, and the Kingdom has stepped up its efforts to support it. SAFEIS held its first esports/gaming tournaments in the Kingdom recently and more are planned. Other tournaments are hosted by platforms such as the Saudi-based KAFU Games.

Meanwhile there are plans for an esports academy as part of the NEOM smart city development. And for those interested in the development of games, Tuwaiq1000 has offered course for beginners interested in learning how to program from scratch, or for professionals who want to refine their programming skills.

Thanks to all this support that is increasingly available, “sooner rather than later Saudi Arabia will become a world leader in esports,” according to academic Ali Alshammari, a game developer and researcher from Tabuk.

Gaming and esports therefore represent an emerging opportunity for Saudi authorities to support and develop a new sector that can make a significant contribution to non-oil revenues, in keeping with the objectives of Saudi Vision 2030.

“We are a part of a global community,” said Prince Faisal, who added that it is important for this community to come together and dispel misconceptions about gaming and esports.

“There are two things I want people to always remember about gaming,” he said. “Try and be positive. And please don’t ever forget that at the end of the day, gaming is about fun and if you are not having fun then you shouldn’t be doing it.”


SAMI launches JV with French firm to build aerostructure components in Kingdom

SAMI launches JV with French firm to build aerostructure components in Kingdom
Updated 04 December 2021

SAMI launches JV with French firm to build aerostructure components in Kingdom

SAMI launches JV with French firm to build aerostructure components in Kingdom

JEDDAH: The Saudi Arabian Military Industries, a wholly owned subsidiary of the Public Investment Fund, on Saturday launched a joint venture with French company Figeac Aero and the Saudi Arabian Industrial Investments Co., Dussur, to build a high-precision manufacturing facility in the Kingdom to produce aerostructure components, SAMI said on Saturday.

The company said that the joint venture’s revenue would reach $200 million by 2030 and the ownership would be divided among the two countries. Fifty-one percent would be owned by Saudi Arabia and 49 percent by France.

SAMI also signed an agreement with Airbus to form a joint project specialized in military aviation services and maintenance, the statement said. As per the deal, the Kingdom would own 51 percent of the joint venture with the European planemaker holding the other 49 percent.

 


Egypt to increase cotton gins capacity, says official report

Egypt to increase cotton gins capacity, says official report
Updated 04 December 2021

Egypt to increase cotton gins capacity, says official report

Egypt to increase cotton gins capacity, says official report

RIYADH: Egypt aims to increase cotton gins capacity to 4.4 million kantars annually up from 1.5 million kantars, according to a government report issued on Saturday.

A kantar is the official Egyptian weight unit for measuring cotton. It corresponds to the US hundredweight, and is roughly equal to 99.05 pounds, or 45.02 kg. It is equal to either 157 kg of seed cotton or 50 kg of lint cotton.

The Egyptian government is trying to breath a new life into the country’s textile industry, which contributes almost 3 percent to the gross domestic product, employs one-third of the industrial labor and generates exports worth $2.6 billion annually. 

According to reports, the country’s cotton production rose by 30 percent during 2021.

Egypt increased the cultivated area this year to 236,000 feddans (one feddan equals 1.038 acres or 0.42 hectare) compared to 182,000 feddans last year.

In its annual report on Egypt’s cotton on March 31, 2021, the US Department of Agriculture said that “cotton area harvested in Egypt was forecast to increase seven percent to 70,000 hectares (ha), from 65,000 ha in MY 2020/21.” It added that Egypt’s production is estimated to increase to 250,000 bales this year compared to 215,000 bales in the previous year.


Bitcoin falls by a fifth, cryptos see $1bn worth liquidated

Bitcoin falls by a fifth, cryptos see $1bn worth liquidated
Updated 04 December 2021

Bitcoin falls by a fifth, cryptos see $1bn worth liquidated

Bitcoin falls by a fifth, cryptos see $1bn worth liquidated

NEW YORK: Bitcoin shed a fifth of its value on Saturday as a combination of profit-taking and macro-economic concerns triggered nearly a billion dollars worth of selling across cryptocurrencies.

Bitcoin was 12 percent down at 0920 GMT at $47,495. It fell as low as $41,967.5 during the session, taking total losses for the day to 22 percent.

The broad selloff in cryptocurrencies also saw ether, the coin linked to the ethereum blockchain network, plunge more than 10 percent.

Based on cryptocurrency data platform Coingecko, the market capitalization of the 11,392 coins it tracks dropped nearly 15 percent to $2.34 trillion. That value had briefly crossed $3 trillion last month, when bitcoin hit a record $69,000.

The plunge follows a volatile week for financial markets. Global equities and benchmark US bond yields tumbled on Friday after data showed US job growth slowed in November and the omicron variant of the coronavirus kept investors on edge.

Justin d'Anethan, Hong Kong-based head of exchange sales at cryptocurrency exchange EQONEX, said he had been watching the increase in leverage ratios across the cryptocurrency markets as well how large holders had been moving their coins from wallets to exchanges. The latter is usually a sign of intent to sell.

“Whales in the crypto space seem to have transferred coins to trading venue, taken advantage of a bullish bias and leverage from retail traders, to then push prices down,” he said.

The selloff also comes ahead of testimony by executives from eight major cryptocurrency firms, including Coinbase Global CFO Alesia Haas and FTX Trading CEO Sam Bankman-Fried, before the US House Financial Services Committee on Dec. 8.

The hearing marks the first time major players in the crypto markets will testify before US lawmakers, as policymakers grapple with the implications of cryptocurrencies and how to best regulate them.

Last week, the US Securities and Exchange Commission (SEC) rejected a second spot-bitcoin exchange-traded fund proposal from WisdomTree.

Data from another platform Coinglass showed nearly $1 billion worth of cryptocurrencies had been liquidated over the past 24 hours, with the bulk being on digital exchange Bitfinex.

A plunge in bitcoin funding rates — the cost of holding bitcoin via perpetual futures which peaked at 0.06 percent in October — also showed traders had turned bearish.

The funding rate on cryptocurrency trading platform BitMEX fell to a negative 0.18 percent from levels of 0.01 percent for most of November.


Saudi, French firms sign 27 MoUs as Macron visits the Kingdom

Saudi, French firms sign 27 MoUs as Macron visits the Kingdom
Updated 04 December 2021

Saudi, French firms sign 27 MoUs as Macron visits the Kingdom

Saudi, French firms sign 27 MoUs as Macron visits the Kingdom

JEDDAH: A group of leading Saudi and French companies signed 27 memorandum of understanding at an investment forum in Jeddah as French President Emmanuel Macron met with Crown Prince Mohammed bin Salman today during his official trip to the Gulf region, where he is visiting Saudi Arabia, the UAE and Qatar between Dec. 3 and 4.

Around 101 Saudi companies and 84 French companies attended six workshops at the forum, which was opened by Khalid Al Falih, Minister of Investment, Saudi Arabia and Franck Riester, Minister Delegate for Foreign Trade and Economic Attractiveness.

"The memorandums of understanding signed today were a cause for optimism and satisfaction," Al Falih said in a tweet after the event.

Represenatives of French companies and banks including EDF Renewables, Engie, Sanofi, and BNP Paribas are meeting with chairmen and CEOs of leading Saudi firms including ACWA Power, Banque Saudi Fransi, Riyad Bank, and Saudi Military Industries Co. Officials from the Public Investment Fund and Royal Commission of AlUla among others are also participating in the forum. 

 

Below is the agenda for the one-day forum:  


Saudi Arabia to start mandatory e-invoicing first phase on Dec. 4

Saudi Arabia to start mandatory e-invoicing first phase on Dec. 4
Updated 03 December 2021

Saudi Arabia to start mandatory e-invoicing first phase on Dec. 4

Saudi Arabia to start mandatory e-invoicing first phase on Dec. 4

RIYADH: Saudi Arabia will start implementing the mandatory application of the first phase of e-invoicing “fatoorah” on Saturday Dec. 4, Argaam reported.

An e-invoice, according to regulations, is a tax invoice that is issued electronically by each taxpayer subject to value-added tax in the Kingdom

The first phase requirements consist of ensuring that there is a technical e-invoicing solution compatible with the relevant requirements. This means no handwritten invoices or invoices written through text editors or number analysis applications on computers.

A fine of SR5,000 ($1,332) will be applied for not issuing and saving the invoices electronically.

The fine for not including the QR Code in the e-invoice and not reporting any malfunction in the issuing of the e-invoice to the authority starts with a warning. The fine for violating the deletion or modification of e-invoice starts from SR10,000.

The second phase of e-invoicing will be implemented in a phased manner, starting from January 1, 2023, to establish integration between e-systems of taxpayers and the authority’s regulations, Argaam said.