Riyadh-based investment firm Merak Capital has announced it is leading a SAR 2.2 million (USD 600,000) seed funding round in Khosouf Studio, a UAE-based independent game developer. The investment, made through Merak Capital’s dedicated Gaming Fund, will facilitate the studio’s relocation to Saudi Arabia, bolstering the Kingdom’s rapidly expanding gaming ecosystem.
Fuelling Saudi’s Gaming Ambitions
This strategic investment aligns with Saudi Arabia’s Vision 2030, which aims to establish the country as a global hub for interactive entertainment and game development. The funding will support Khosouf Studio’s growth and expansion as it establishes its operations within the Kingdom.
Merak Capital’s Gaming Fund, launched in partnership with the National Development Fund, is designed to empower early-stage gaming startups and foster the creation of a competitive local ecosystem.
Abdulelah Alshareef, Principal of Venture Capital at Merak Capital, commented, “Khosouf Studio represents the type of globally minded gaming developer we seek to support through Merak Capital’s Gaming Fund. This investment reflects our conviction in backing local and international studios with strong creative and technical capabilities that are committed to building and scaling their operations from Saudi Arabia. By supporting teams like Khosouf, we aim to accelerate the development of globally competitive gaming intellectual property while contributing to the growth of the Kingdom’s gaming ecosystem.”
Khosouf Studio’s Creative Vision
Founded in 2020, Khosouf Studio specializes in developing premium, narrative-driven titles for PC, console, and virtual reality (VR) platforms. The studio has already gained international recognition with its award-winning debut title, BOX to the BEAT VR. It is currently developing two new original IPs: The Panic Pit and Glitch Core, a first-person shooter with a strong co-op focus.
In addition to its original games, the studio provides VR services for gaming and non-gaming clients, including interactive experiences, simulations, and educational solutions.
“Merak Capital’s investment is an absolute game changer,” said Ahmad Al-Natsheh, Founder and Chief Executive Officer of Khosouf Studio. “It will elevate our goals and push us to new heights while helping establish our long-term base in Saudi Arabia. Having such an established and capable partner allows us to scale with confidence while publishing proudly locally developed original titles across the entire world.”
Merak Capital’s Gaming Focus
In 2024, Merak Capital launched its SAR 306 million gaming fund and a dedicated gaming accelerator. The initiative aims to back high-potential gaming studios that are building original intellectual property and contributing long-term value to Saudi Arabia’s technology and entertainment sectors.
About Merak Capital
Merak Capital is a Saudi-based multi-strategy investment firm licensed by the Capital Market Authority. The firm manages over SAR 3 billion across 10 funds spanning venture capital, private equity, credit financing, and special projects. Merak partners with founders and enterprises to unlock new markets and enable sustainable growth, taking an active approach to value creation by supporting portfolio companies through governance, operations, and strategic initiatives.
About Khosouf Studio
Khosouf Studio is an independent game development studio and publisher founded in 2020. The studio focuses on building original IPs with a strong emphasis on narrative, systems-driven gameplay, and immersive technologies across PC, Consoles, and Virtual Reality platforms. With over 20 projects delivered, Khosouf Studio develops its own titles while also providing high-end XR experiences for partners across multiple industries.
Source: Zawya
