UAE-Based Khosouf Studio Raises US$600,000 In Seed Funding From KSA-Based Merak Capital

UAE-based independent game developer Khosouf Studio has bagged SAR2.2 million (US$600,000) from KSA-based investment firm Merak Capital’s gaming fund, which is delivered in partnership with Saudi Arabia's National Development Fund and targets early-stage studios developing original intellectual property. 

Founded by Ahmad Al-Natsheh in the UAE in 2019, Khosouf Studio builds premium, narrative-driven games for personal computer (PC), console, and virtual reality (VR) platforms, while also developing VR experiences for both gaming and non-gaming use cases. 

In an interview with Inc. Arabia, Al-Natsheh shared the story of how his startup came to be. “Khosouf started in a pretty unexpected way," he said. "Back in 2012, it wasn’t a game studio at all—it began as a small guitar-making project and a music band. I needed a name for the band, saw a khosouf (Arabic for "lunar eclipse") outside, and the name stuck. Over time, that creative mindset slowly moved toward game development. We officially incorporated Khosouf in Dubai in 2019, then established operations in Abu Dhabi in 2020. Today, we’re in the process of relocating our operations to Riyadh as the next step in the studio’s growth.”  

Khosouf Studio has since released its debut title, BOX to the BEAT VR, and it is currently developing two original intellectual properties, The Panic Pit and Glitch Core. And as the studio scales its ambitions, its focus remains clear. “Our mission is simple: to create high-quality games for PC and consoles that players around the world can enjoy," Al-Natsheh said. "At the same time, we want to help grow the game development scene in the Middle East, and show that studios from the region can build games with global reach.” 

Khosouf Studio's mission has been further validated in the latest funding round, with Al-Natsheh attributing investor interest to the studio’s persistence in growing in a highly competitive industry. "Over the years, we've worked on around 20 projects and kept learning from each one," he said. "A big milestone for us was releasing our award-winning game Box To The Beat VR on PlayStation 5, which helped us move into console publishing."

In addition to supporting the studio's growth, the funding will also facilitate its relocation to Saudi Arabia, where it will become part of the gaming ecosystem, in line with the Kingdom’s Vision 2030 goals for the interactive entertainment and game development sector. Critically, Al-Natsheh sees the backing as opening the door to deeper engagement with the Kingdom’s growing gaming ecosystem. 

“Beyond funding, the real value of this partnership is the chance to learn, connect, and grow alongside other studios in the Kingdom, and we will be able to exchange knowledge with founders from different parts of the world and gain new perspectives on how to build a sustainable studio,” Al-Natsheh said. “The Kingdom has built a fast-growing and supportive environment for game developers, and that makes the move feel exciting rather than risky. We believe being closer to this growing community will have a very positive impact on both the team and the business.”   

And it is precisely that institutional and industry support that Al-Natsheh sees as creating a strong foundation for studios to scale beyond the region. “Developers in the region have never lacked ideas or ambition," Al-Natsheh said. "What’s changing now is the level of support around them. With the growing focus on gaming in places like Saudi Arabia, studios have more opportunities to learn, experiment, and grow. To stand out globally, studios need to balance creativity with strong execution. Many younger teams struggle not with ideas, but with things like production planning, scoping, and publishing. Being part of a supportive ecosystem helps studios learn these skills faster without losing what makes them unique. That balance is what allows studios to stay authentic while competing on an international level.” 

That sense of authenticity, Al-Natsheh pointed out, is key to helping independent studios navigate the fast-shifting dynamics of the global gaming industry. “For me, the most important factor isn’t a trend, it's resilience," he said. "Making games as an indie studio is tough, and things rarely go exactly as planned. Trends come and go, and chasing them can be risky, especially when you’re competing with much larger studios. What usually works better is building something you genuinely care about. When developers put real passion into their games, players feel it. That connection matters more than following whatever trend is popular at the moment.” 

That perspective also shapes the advice Al-Natsheh offers to founders entering the gaming space today. “What really defines Khosouf is that we didn’t wait," he pointed out. "We didn’t wait for perfect timing, outside validation, or someone else to open the door for us, we just started building and learned along the way. Now, as we prepare to relocate to Saudi Arabia, we’re excited to grow alongside a new and fast-developing game community. The support systems that are emerging make it easier for studios to focus on making great games. My advice to founders is simple: start, learn, and keep moving forward."

Pictured in the lead image is Khosouf Studio founder and CEO Ahmad Al-Natsheh. Image courtesy Khosouf Studio.