Saudi Arabia Unites Gaming Powerhouses With NEOM Deal

On January 26, 2026, Saudi Arabia took another ambitious step toward transforming its economic landscape, as Savvy Games Group and NEOM signed a Memorandum of Understanding (MoU) designed to supercharge the nation’s budding video game industry. The formal agreement, as reported by both GamesIndustry.biz and VentureBeat, brings together two of the country’s most prominent state-backed organizations—both owned and operated by the Saudi Public Investment Fund (PIF)—to streamline support for gaming startups through their respective incubator and accelerator programs.

At first glance, this might seem like just another corporate handshake. But dig a little deeper, and it’s clear this move is part of a much grander vision: Saudi Arabia’s ongoing effort to diversify its economy away from oil and establish itself as a powerhouse in gaming, esports, and entertainment. The MoU formalizes a partnership between Savvy’s Nine66 Incubator and NEOM’s Level Up Accelerator, promising a seamless transition for startups as they move from early-stage development into full-fledged acceleration and scaling.

“This Savvy-NEOM collaboration builds upon the rapid evolution of both programs and shall ultimately support a stronger pipeline of investable gaming studios,” a joint press release stated, as cited by GamesIndustry.biz. The intention is straightforward: startups that graduate from Savvy’s Nine66 Incubator will now have a direct path into NEOM’s Level Up Accelerator, where they’ll receive additional resources, mentorship, and investment opportunities.

For those unfamiliar with the players, Savvy Games Group serves as the main pillar of the Saudi government’s investments in gaming and esports, controlling stakes in companies like Scopely, SNK Corporation, and the ESL FACEIT Group. It’s even in the process of acquiring Electronic Arts, a deal that would make waves across the global gaming industry. NEOM, on the other hand, is the Kingdom’s headline-grabbing “giga-project”—a futuristic, sustainable megacity rising from the desert, with a broader remit to drive economic diversification under the banner of Saudi Vision 2030.

Both the Nine66 Incubator and the Level Up Accelerator have already made significant impacts. According to Savvy, its incubator has “helped early-stage studios validate prototypes, build foundational capabilities, and prepare for investor engagement.” NEOM’s accelerator, meanwhile, boasts a portfolio of over 45 Saudi startups, 15 direct investments, and a 100% survival rate—an impressive feat by any measure and one that, as NEOM claims, “outperforms many global benchmarks.” Perhaps most notably, the program facilitated what it calls a “historic milestone”: the Kingdom’s first international publishing deal for a domestic gaming startup, signed between Fahy Studio and UK-based publisher Kwalee.

The timing of the MoU is telling. As GamesIndustry.biz reported, Saudi Arabia is now scaling back the scope of the NEOM project, likely in response to financial pressures. A New York Times report from November 2025 indicated that PIF was running low on cash for future investments, raising questions about the sustainability of such large-scale ventures. Yet, the government’s commitment to gaming remains steadfast. Earlier this month, PIF transferred approximately $12 billion worth of gaming shares to Savvy Games Group, according to Bloomberg, consolidating its gaming assets and signaling that this sector is still a top priority.

Amr Sager, Savvy Games Group’s chief of staff, emphasized the urgency of supporting local talent. “The game industry is growing at a rapid pace within Saudi Arabia,” Sager said, as quoted by GamesIndustry.biz. “In order to maintain that momentum, it’s vital to provide emerging studios with the support required to build, run, and scale.”

But while the Kingdom is keen to be seen as a champion of innovation and youth entrepreneurship, its aggressive push into gaming and entertainment hasn’t escaped controversy. International watchdogs, including Human Rights Watch and Amnesty International, have repeatedly criticized Saudi government-owned properties for so-called “sports washing”—using high-profile investments in sports and entertainment to distract from the country’s record on human rights, women’s rights, and LGBTQ+ rights, as well as its involvement in the war in Yemen.

These concerns have only intensified in recent years. Human Rights Watch, for instance, has accused PIF of facilitating and benefiting from “human rights abuses” in the region under the stewardship of Crown Prince Mohammed bin Salman, who remains linked to the 2018 murder of Washington Post journalist Jamal Khashoggi. As recently as November 2025, bin Salman was still facing questions over the killing, according to BBC. The specter of these issues looms large over every announcement, no matter how forward-looking or innovative.

There’s also the matter of international scrutiny over Saudi Arabia’s gaming ambitions. Last week, U.S. lawmakers called on the Federal Trade Commission to examine the planned buyout of Electronic Arts, which could see PIF holding a controlling 93.4 percent stake in the iconic publisher of the Battlefield franchise. The move has sparked debate about whether such consolidation poses risks to competition and content moderation, not to mention the ethical implications of state-backed ownership in the industry.

Despite these headwinds, the Kingdom’s gaming ecosystem continues to expand. Savvy’s acquisition of Pokémon Go and most of Niantic’s video game business through its Scopely subsidiary in March 2025 underscored the scale and ambition of Saudi investments. And with the new MoU, the government is doubling down on its promise to create “future-facing jobs” and foster homegrown innovation, all while chasing the lofty goals of Vision 2030.

As with much in Saudi Arabia’s transformation, the devil is in the details. The financial terms of the Savvy-NEOM deal remain undisclosed, and given that both entities draw funding from the same sovereign wealth fund, it’s difficult to know whether any actual money has changed hands. What’s clear, however, is that the partnership is more than just a paper agreement—it’s a signal of intent, a roadmap for nurturing a new generation of Saudi game developers, and a bold bet on gaming as a pillar of the post-oil economy.

For startups, the message is clear: there’s never been a better time to build in Saudi Arabia—provided, of course, you’re willing to navigate the complex web of politics, ambition, and global scrutiny that comes with it. As the world watches, the next chapter of Saudi gaming is already being written—one incubator, one accelerator, and one bold move at a time.