Saudi Arabia Inaugurates Stage of Transition to Digital World Economies

Saudi Arabia introduces its National Gaming and Esports Strategy (Asharq Al-Awsat)
Saudi Arabia introduces its National Gaming and Esports Strategy (Asharq Al-Awsat)
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Saudi Arabia Inaugurates Stage of Transition to Digital World Economies

Saudi Arabia introduces its National Gaming and Esports Strategy (Asharq Al-Awsat)
Saudi Arabia introduces its National Gaming and Esports Strategy (Asharq Al-Awsat)

After Crown Prince Mohammed bin Salman announced the National Gaming and Esports Strategy on Thursday, Saudi Arabia is set to launch a serious transformation phase towards the economies of the gaming industry.

The Strategy aims to contribute to the Kingdom’s GDP by about SAR 50 billion ($13.3 billion) directly and indirectly, experts confirmed.

Moreover, economists told Asharq Al-Awsat that the Strategy will support investors in the gaming and esports sector in drawing a road map through which Saudi Arabia becomes a global hub for the industry.

Raising the quality of life by improving players’ experience, providing new entertainment opportunities, and achieving an economic impact by contributing to the GDP by about SAR 50 billion are the Strategy’s three main objectives.

This will lead to the creation of 39,000 new jobs by 2030.

Saudi Arabia aims to produce more than 30 competitive games in the Kingdom’s studios and become one of the top three countries having the highest number of professional esports players.

Ahmed Al-Shehri, an economist, told Asharq Al-Awsat that the new Strategy would motivate investors to enter the promising sector of gaming and e-sports and achieve huge profits in light of the great demand from the current generations for these games.

According to Al-Shehri, the Strategy is bound to yield a positive effect on the Saudi economy.

The country intends to implement the Strategy through 86 initiatives covering the entire value chain, which was launched and managed by more than 20 government and private entities.

These initiatives are divided into eight focus areas, which include technology and hardware development, game production, e-sports, additional services, and other aspects such as infrastructure, regulations, education and talent acquisition.

The Strategy will meet the aspirations of the gaming community locally and globally by providing new and distinctive job and recreational opportunities, Saudi economic expert Ahmed al-Jubeir told Asharq Al-Awsat.

According to al-Jubeir, the Strategy will create healthy competition among companies to enter this promising and targeted sector in Saudi Arabia.

He noted that companies could achieve huge profits because of the Kingdom having the largest purchasing power in the region.



Oil Slumps 3% as Trump's Tariffs Expected to Impede Demand

FILE PHOTO: An oil and gas industry worker walks during operations of a drilling rig at Zhetybay field in the Mangystau region, Kazakhstan, November 13, 2023. REUTERS/Turar Kazangapov/File Photo
FILE PHOTO: An oil and gas industry worker walks during operations of a drilling rig at Zhetybay field in the Mangystau region, Kazakhstan, November 13, 2023. REUTERS/Turar Kazangapov/File Photo
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Oil Slumps 3% as Trump's Tariffs Expected to Impede Demand

FILE PHOTO: An oil and gas industry worker walks during operations of a drilling rig at Zhetybay field in the Mangystau region, Kazakhstan, November 13, 2023. REUTERS/Turar Kazangapov/File Photo
FILE PHOTO: An oil and gas industry worker walks during operations of a drilling rig at Zhetybay field in the Mangystau region, Kazakhstan, November 13, 2023. REUTERS/Turar Kazangapov/File Photo

Oil prices fell by over 3% on Thursday after US President Donald Trump announced sweeping new tariffs which investors worry will enflame a global trade war that will curtail economic growth and limit fuel demand.

Brent futures were down $2.66, or 3.55%, to $72.29 a barrel by 0918 GMT US West Texas Intermediate crude futures were down $2.69, or 3.75%, to $69.02.

Trump on Wednesday unveiled a 10% minimum tariff on most goods imported to the United States, the world's biggest oil consumer, with much higher duties on products from dozens of countries, initiating a global trade war that threatens to drive up inflation and stall US and worldwide economic growth, Reuters reported.

"The US tariff announcement clearly caught markets off guard. Pre-announcement speculation suggested a flat 15-20% tariff, but the final decision was more hawkish," Yeap Jun Rong, market strategist at IG, said in an email.

"For oil prices, the focus now shifts to the global growth outlook, which is likely to be revised downward due to these higher-than-expected tariffs," he added.

Imports of oil, gas and refined products were exempted from the new tariffs, the White House said on Wednesday.

UBS analysts on Wednesday cut their oil forecasts by $3 per barrel over 2025-26 to $72 per barrel, citing weaker fundamentals.

Traders and analysts now expect more price volatility in the near term, as the tariffs may change as countries try to negotiate lower rates or impose retaliatory levies.

"Countermeasures are imminent and judging by the initial market reaction, recession and stagflation have become terrifying possibilities," said PVM analyst Tamas Varga.

"As tariffs are ultimately paid for by domestic consumers and businesses, their cost will inevitably increase impeding the rise in economic wealth."

In other news, US Energy Information Administration data on Wednesday showed US crude inventories rose by a surprisingly large 6.2 million barrels last week, against analysts' forecasts for a decline of 2.1 million barrels.

Market participants are also awaiting the outcome of an OPEC+ meeting on Thursday, which will discuss Kazakh output.