The competitive gaming industry has grown rapidly over the past two decades, transforming from a niche sub-culture into a global phenomenon watched by millions of spectators worldwide.

More than 3 million fans attended the 2025 Esports World Cup in Saudi Arabia alone, according to the tournament’s organisers, where professional players and teams competed for over US$70 million (£53 million) in prize money.

As I have found in my own research, esports are no longer just contests between players. They have become arenas of significant geopolitical competition in three main ways, as instruments of economic development, soft power and statecraft.

1. Pillar of economic diversification

Saudi Arabia has invested heavily in esports as part of its broader efforts to reduce its economic reliance on oil exports. Through its National Gaming and Esports Strategy, announced in 2022, the Saudi government is aiming to support 250 gaming companies and create 39,000 domestic jobs.

The Esports World Cup, which was launched in 2023 and is funded by Saudi Arabia, as well as the 500,000 sq metre gaming and esports hub in the planned Qiddiya City, are core parts of this strategy. The ambition is to bring gaming studios, tournament venues, technical expertise and tourism into the Saudi economy.

Backed by the kingdom’s sovereign wealth fund, Saudi Arabia’s National Gaming and Esports Strategy........

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