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Khosouf Studio Secures $600k Seed Round, Eyes Saudi Gaming Hub Ambition

Editorial Team
Editorial Team

3 min

UAE-born Khosouf Studio raised SAR 2,2 million in seed funding led by Saudi-based Merak Capital.

The investment supports a shift to Saudi Arabia, aligning with Vision 2030 and ā€œglobal ambitionsā€.

Merak’s Gaming Fund backs early studios building original IP with ā€œstrong creative and technical depthā€.

Founded in 2020, Khosouf makes premium narrative games, including award-winning BOX to the BEAT VR.

The studio is developing two new titles while also expanding VR work beyond pure entertainment.

Khosouf Studio, an independent game developer born in the UAE, has secured a SAR 2.2 million (around $600,000) seed investment led by Saudi-based Merak Capital. The round was backed through Merak’s Gaming Fund, which is licensed by the Capital Market Authority and focuses on early-stage studios building original gaming intellectual property with global ambitions.

The fresh capital will support Khosouf as it shifts its operations to Saudi Arabia, a move that ties neatly into the Kingdom’s Vision 2030 plans to become a serious global hub for interactive entertainment. That’s not just talk. From what we’ve seen across Arageek’s coverage over the years, founders who plant roots in Saudi today are finding doors opening a bit faster than before, even if the relocation process can be a bit of a faff.

Merak Capital’s Gaming Fund is delivered in partnership with the National Development Fund and aims to give the next wave of gaming startups a proper leg up. According to Abdulelah Alshareef, Principal of Venture Capital at Merak Capital, Khosouf fits the bill as a ā€œglobally mindedā€ studio with strong creative and technical depth, capable of scaling its operations from Saudi Arabia while producing competitive titles for international markets.

Founded in 2020, Khosouf Studio focuses on premium, narrative-driven games for PC, consoles and VR. The team made an early mark with BOX to the BEAT VR, which picked up awards after its international release. Right now, it is developing two original titles: The Panic Pit and Glitch Core, a co-op-focused first-person shooter roguelite, a genre that’s tricky to get right but, when done well, is spot on for community-driven play.

Beyond entertainment, the studio also works on VR solutions outside gaming, from simulations to educational experiences. That mix feels smart. I reckon studios in MENA that diversify early tend to weather market swings better than those betting on a single hit… well, most of the time.

Commenting on the raise, founder and CEO Ahmad Al-Natsheh described the investment as a ā€œgame changerā€, saying it would help the studio scale with confidence and publish locally developed titles for a global audience. It’s a familiar ambition, but in gaming, ambition alone doesn’t cut it. Execution does.

Merak Capital, for its part, launched a SAR 306 million gaming fund and accelerator in 2024, targeting high-potential studios building long-term value inside Saudi Arabia. And believe it or not, this isn’t just about games, it’s about building sustainable creative businesses. Watching this space closely, you can feel the momentum building—slowly, sometimes quietly, but definately in the right direction.

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