Saudi Arabian mobile game developer Floaty Studio has raised $1 million in an investment round led by Merak Capital through the Merak Gaming Fund, securing fresh capital to advance its game pipeline and pursue players beyond its domestic market.
The Riyadh-based studio is developing mobile games intended for international audiences, with the investment expected to support product development and the rollout of upcoming titles. Merak Capital announced the transaction through its official LinkedIn account, saying the deal reflected its confidence in Floaty’s product vision and Saudi Arabia’s growing position as a center for gaming entrepreneurship.
The investment was made through the Merak Gaming Fund, an $80 million vehicle focused on supporting gaming companies and talent in Saudi Arabia. Floaty said the funding will help advance its mobile game pipeline and support its efforts to reach players in international markets.
Building Games Beyond the Domestic Market
Founded in 2023, Floaty describes itself as an independent studio focused on casual and accessible mobile games. Its company profile lists Riyadh as its headquarters and says the studio aims to develop experiences that can reach players around the world rather than operating solely within the Saudi market.
The company is currently working on two mobile titles. PocketGamer.biz identified them as Pirasea, a pirate-themed strategy game, and Hero Squad, a science-fiction action title built around assembling heroes to fight robotic enemies.
Floaty’s emphasis on mobile development gives the studio access to a broad global distribution channel, but reaching players at scale requires more than completing a game. Studios must also test player retention, refine monetization, acquire users and maintain a steady flow of new content after launch. The $1 million round gives Floaty additional resources to move its projects through those stages.
Merak Expands Its Gaming Portfolio
The investment places Floaty within a growing portfolio assembled by Merak Capital, a Riyadh-headquartered investment firm active across venture capital, private equity, private credit, real assets and special projects. Merak said it led Floaty’s round through the Merak Gaming Fund rather than through its accelerator program.
The Merak Gaming Fund is an $80 million vehicle backed by Saudi Arabia’s National Development Fund and Social Development Bank. The fund was established with capital of 300 million Saudi riyals, equivalent to about $80 million under the Saudi riyal’s fixed exchange rate of 3.75 riyals to the US dollar.
Merak has also backed other game-development businesses through the fund. PocketGamer.biz reported that the firm led a $480,000 pre-seed investment in gaming technology startup Qwacks in 2025 and invested $600,000 in Khosouf Studio in 2026 to support the developer’s expansion and relocation to Saudi Arabia. Those transactions indicate that Merak is deploying capital across several parts of the game-development pipeline rather than concentrating on a single studio or title.
Saudi Arabia Develops a Local Gaming Base
Floaty’s financing comes as Saudi Arabia directs public and private capital toward building a domestic gaming and esports industry. The country has historically been a significant consumer market for games, while its newer investment programs are intended to expand local development, publishing expertise, entrepreneurship and intellectual-property creation.
The Saudi Press Agency announced the establishment of two gaming and esports investment funds totaling $120 million in 2024. Merak was selected to manage the larger vehicle, valued at 300 million Saudi riyals ($80 million), with a mandate that included establishing a gaming accelerator supported by venture investment and developing local companies and talent.
Floaty's funding also comes as Saudi Arabia continues to strengthen its presence across the broader gaming ecosystem. Earlier this month, the Saudi-founded Esports World Cup opened in Paris with a record prize pool of more than $75 million, underscoring the country's growing investment in competitive gaming and interactive entertainment. While the tournament and Floaty operate in different parts of the industry, both reflect Saudi Arabia's wider ambition to expand its influence across game development, esports and digital entertainment.
Part of that mandate is being carried out through Exel by Merak, an accelerator that operates alongside the fund’s direct investment activity. According to PocketGamer.biz, Exel invested $5.1 million across 17 startups in its first cohort, with each company receiving $300,000 in equity financing. Floaty’s funding sits outside that cohort structure, making it a separate direct investment led by Merak through its gaming fund.
Global Expansion Brings New Challenges
The new financing gives Floaty more room to develop its games. Mobile gaming remains highly competitive, and studios must persuade players to discover, download and repeatedly return to new titles in an environment dominated by established publishers and heavily marketed franchises.
International ambitions also bring practical decisions around localization, platform policies, user-acquisition spending and the timing of soft launches. A phased release could allow the studio to collect player data and adjust gameplay before committing larger amounts to marketing.
The round provides Floaty with a stronger financial base as it moves from early development toward launch. Its progress will offer a measure of whether Saudi Arabia’s expanding gaming-investment infrastructure can help locally based studios produce original titles that compete for players internationally, rather than limiting growth to the domestic market.
