Riyadh, Saudi Arabia – Merak Capital, a Saudi-based investment firm licensed by the Capital Market Authority, has led a SAR 2.2 million (USD 600,000) seed round in Khosouf Studio, a UAE-based independent game developer specializing in premium PC, console, and virtual reality titles.

The investment was made through Merak Capital’s Gaming Fund. The fund is delivered in partnership with the National Development Fund and aims to empower the next generation of gaming startups by supporting early-stage studios that contribute to the development of a globally competitive gaming ecosystem in Saudi Arabia.

It will support Khosouf Studio’s growth and expansion as it relocates its operations to Saudi Arabia, contributing to the Kingdom’s gaming ecosystem and its objective to become a global hub for interactive entertainment and game development in line with Vision 2030.

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.”

Founded in 2020, Khosouf Studio develops and publishes premium, narrative-driven titles for PC, console, and VR platforms.

The studio released its award-winning debut title BOX to the BEAT VR internationally and is currently in production on two original IPs: The Panic Pit and Glitch Core, a first-person shooter roguelite with a strong co-op focus.

Alongside its original games, Khosouf Studio delivers gaming and non-gaming VR services, including interactive experiences, simulations, and educational solutions for clients.

Ahmad Al-Natsheh, Founder and Chief Executive Officer of Khosouf Studio, said: "Merak Capital’s investment is an absolute game changer. 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."

In 2024, Merak Capital launched its SAR 306 million gaming fund and gaming accelerator to back high-potential gaming studios building and scaling original intellectual property while building long-term value within Saudi Arabia.

About Merak Capital

Merak Capital is a Saudi-based multi-strategy investment firm focused on opportunities across multiple stages and industries. 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 is built on deep technological insight and market research, staying at the forefront of digital trends and identifying investments aligned with adoption cycles across sectors locally, regionally, and globally.

The firm partners with visionary founders and enterprises driving transformation, unlocking new markets, and enabling sustainable growth. Merak takes an active approach to value creation, supporting portfolio companies through governance enhancement, operational development, and strategic growth initiatives as they scale toward market leadership.

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 under its belt and development partnerships with industry-leading technology providers, Khosouf Studio develops and publishes its own titles while also delivering high-end XR experiences, simulations, and educational solutions for partners across multiple industries. The studio’s long-term vision is to create globally competitive original games while helping shape a sustainable game development ecosystem in the region.