KSA-Based Fahy Studios Pockets US$1.75 Million From Impact46, Merak Capital

Saudi Arabia-based game development studio Fahy has raised US$1.75 million in a funding round led by Riyadh-based investment firms Impact46 and Merak Capital. 

Founded by Hani Hashem, Owais Alsaour, and Fahad Alshibl in KSA in 2023, Fahy develops hybrid-casual mobile games, bringing together in-house design, art, and development. Having been a part of the LevelUp accelerator run by Saudi giga-project NEOM, Fahy has now, with the influx of funds, come a long way from its indie origins—a transformation that the founders admit came with its own set of challenges.  

“In the early days, we thrived on instinct,” the co-founders told Inc. Arabia in an email interview. “Fast decisions, close communication, and everyone wearing multiple hats. But once we grew into a 15+ person studio running multiple projects, that same approach quickly turned into chaos. On the flip side, when we introduced more formal tools and workflows, we risked becoming rigid, losing agility and creativity. The real challenge was finding the balance. What worked for us was shifting to smaller squads with real autonomy and ownership, allowing us to preserve the indie spirit, while having just enough structure to stay aligned with Fahy’s broader strategy.” 

Key partnerships have also marked Fahy’s growth. After completing the NEOM LevelUp accelerator, the studio in December 2023 signed a publishing agreement with UK-based developer and publisher Kwalee, gaining access to expertise in user acquisition, monetization, and global distribution. These moves positioned the company for its next phase of scaling, and when asked about the factors that they believe helped convince Impact46 and Merak Capital to back their startup, the co-founders suggested four things stood out. 

“First, our business acumen," they said. "As founders, we came from management consulting and finance, which helped us build a clear strategy, a solid business model, and a strong financial plan, all presented through a well-structured pitch and professional negotiation approach. Second, our global vision. Even though we operate from Saudi Arabia, we’ve had global ambitions from day one, creating games with worldwide appeal and distribution. That trajectory resonated strongly with venture capitalists."

"Third, our strategic partnerships," the co-founders continued. "Our participation in the NEOM LevelUp accelerator, the reputation we built there, and our publishing partnership with Kwalee also signaled credibility and quality.” However, Hashem, Alsaour, and Alshibl highlighted that the decisive factor was Fahy’s demos. “Having strong projects to showcase the kind of quality we can deliver ultimately gave investors confidence that Fahy wasn’t just an idea on paper, but rather something that is already being executed,” they said. 

Fahy’s pipeline of games now includes RAWR, a monster-collecting role-playing game (RPG) built around unique battle mechanics and a rich storyline, Footy Traps, a competitive football game where strategy decides the winner, and Heist Party, a multiplayer caper that lets players team up—or double-cross each other—in pursuit of loot. 

According to a 2022 Boston Consulting Group report, Saudi Arabia is home to about 23.5 million gamers—roughly 67 percent of the country’s population. Industry forecasts also expect the gaming market to grow from approximately $1.36 billion in 2024 to around $2.22 billion by 2030, signaling a rapid expansion in both players and spending. 

While Fahy’s journey in the KSA gaming arena is still unfolding, the co-founders were happy to share hard-earned lessons with other entrepreneurs in the domain. “The path to success is never a straight line, and your initial plan will be completely rewritten,” the co-founders declared. “This is why choosing the right co-founders and having the humility to listen to everyone are non-negotiable. These relationships, along with your strategic partners, are what get you through the inevitable tough days. Your ability to adapt with the right people is the single most important factor in turning a vision into a reality.” 

Pictured in the lead image are Fahy co-founders Owis Alsaour, Hani Hashem, and Fahad Alshibl. Image courtesy Fahy.