VSPO is a Chinese esports agency that house multiple teams such as Iris Black Games and Lupinus Virtual Games, as well as individual players.

The deal would give Savvy a minority stake and make it VSPO's largest institutional stakeholder.

Saudi Arabia is aiming to become one of the world's main gaming hubs, with the industry expected to contribute one per cent to its gross domestic product by 2030.

"We envision a thriving global esports sector with a vibrant, talented, and dynamic community at its core, and we appreciate the immense opportunities for this industry, especially here in the Kingdom of Saudi Arabia with such a young population of approximately 23 million enthusiasts," said Saudi royal and chairman of Savvy Games Group Prince Faisal bin Bandar bin Sultan Al Saud.

"This investment is one part of the ambitious plan that will enable and support the esports ecosystem in Saudi Arabia.

"Attracting international companies to Saudi Arabia through investments and partnerships will contribute to providing skills, knowledge transfer and building capabilities in the whole ecosystem."

This is not the first Saudi Arabian investment into esports.

The kingdom has also acquired a five per cent stake in Nintendo and put approximately $3 billion (£2.4 billion/€2.8 billion) into American gaming companies including Activision Blizzard.

Capital city Riyadh is also set to host the 2023 Global Esports Games in December.

"This is an exciting time in the global esports industry and we are delighted to be working with Savvy to grow the sector worldwide," said VSPO chief executive Dino Ying.

"We believe we can take this industry to the next level and deliver our aligned vision; bringing communities together through esports.

"This historic investment will strengthen our ambitious global strategy, with a particular focus on Asia and the Middle East where we will support Savvy's vision to grow esports throughout this incredibly dynamic and young region."

Global esports revenues stood at $1.3 billion (£1 billion/€1.2 billion) last year, according to Statista, and are projected to grow to $1.86 billion (£1.5 billion/€1.7 billion) in 2025.