BRIEF: NIP Group in $40 million partnership with Abu Dhabi

Esports company NIP Group (NIPG.US) announced it has entered a partnership to develop the esports industry in Abu Dhabi, in a $40 million, five-year deal that will also see the company establish its global headquarters in the Middle Eastern city in the United Arab Emirates (UAE).

Under the deal, announced on Tuesday, NIP Group will work with the Abu Dhabi Investment Office (ADIO) to “drive gaming, media and entertainment growth in Abu Dhabi and support its own expansion in the region,” NIP Group said. It added it will also gain “access to financial and non-financial growth opportunities valued at up to $40 million over a four-year period.”

“We’re delighted to partner with ADIO as we bring together our Eastern and Western businesses, establishing a truly global headquarters that represents not only our growth as a company but the growth of gaming and entertainment in the Middle East” said Hicham Chahine, Co-CEO of NIP Group.

NIP Group was formed through a merger in 2023 between Sweden’s Ninjas in Pyjamas and China’s ESV5, and raised $20 million in a Nasdaq IPO last July. The company’s revenue rose about 2% year-on-year to $39.3 million in the first half of last year, while its net loss narrowed to $4.7 million from $11.3 million over that period, according to its latest financial results.

The new partnership is part of a broader effort by Middle Eastern countries to diversify beyond their traditional energy bases into higher value-added sectors. In a similar partnership with Saudi Arabia’s Public Investment Fund (PIF), computing giant Lenovo (0992.HK) is establishing a production base and setting up its regional headquarters in the country.

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Reporting by Doug Young