Abu Dhabi is making a bold move to establish itself as a major player in the Middle East's gaming and esports industry, challenging Saudi Arabia's dominance in the sector. The Abu Dhabi Investment Office (ADIO) has entered into a five-year strategic partnership with Nasdaq-listed esports organization NIP Group, marking a significant step in the Emirate's ambitions.
Under the terms of the agreement, NIP will relocate its global headquarters to Abu Dhabi, fostering local employment and industry growth. In return, ADIO has pledged $40 million in support to fuel the Swedish firm's expansion across various business verticals, including esports operations, creative studios, game publishing, and talent management. "ADIO's partnership with NIP Group reflects our shared ambition to lead creative industries at the cutting edge of entertainment and technology," said Badr Al-Olama, director general of ADIO. "Welcoming NIP Group to Abu Dhabi marks a significant milestone in this endeavour, and we look forward to jointly shaping a vibrant future for the esports and gaming sector in the region and beyond."
NIP, which emerged from the 2023 merger between esports powerhouse Ninjas in Pyjamas and digital sports group ESV5, is set to establish a local esports academy and creative studios aimed at developing games that showcase Abu Dhabi's cultural heritage. The initiative will also include the creation of locally registered intellectual property and content inspired by the Al Ain and Al Dhafra regions. "This collaboration with ADIO not only reflects our growth ambitions but also our commitment to creating meaningful opportunities for local talent," said Mario Ho, chairman and co-chief executive of NIP. "By creating new jobs and amplifying Abu Dhabi's leadership in esports and gaming, we aim to empower a new generation of professionals who will drive the gaming and entertainment sector forward in the Middle East and beyond."
Despite Abu Dhabi's ambitious plans, it faces stiff competition from Saudi Arabia, which has firmly positioned itself as the regional leader. The Kingdom's National Gaming and Esports Strategy aims to make Saudi Arabia the global epicenter of gaming and esports by 2030, capitalizing on the country's massive gaming audience, with two-thirds of its population being avid gamers.
A key component of Saudi Arabia's esports vision is the development of a gaming and esports district within Qiddiya City, near Riyadh. In April last year, esports tournament organizer ESL FACEIT signed a five-year deal with Qiddiya City to advance the project. Notably, ESL FACEIT is owned by Savvy Gaming Group, a subsidiary of the Public Investment Fund (PIF), which has made significant investments in the esports landscape, including a landmark $265 million acquisition of a controlling stake in Chinese esports firm VSPO.
Saudi Arabia has also secured hosting rights for the International Olympic Committee's inaugural Olympic Esports Games, part of a 12-year agreement with the National Olympic Committee of Saudi Arabia. Moreover, Riyadh hosted the eight-week-long Esports World Cup last summer, offering a record-breaking $60 million prize pool.
With both nations vying for supremacy in the esports arena, Abu Dhabi's strategic partnership with NIP Group is a clear statement of intent. The Emirate is betting on long-term investment in talent, infrastructure, and innovation to carve out its place in the region's rapidly growing gaming industry. Whether it can surpass Saudi Arabia's head start remains to be seen, but one thing is certain: the battle for Middle East esports dominance is heating up.