UAE-based game developer Khosouf Studio has raised USD 600,000 from Merak Capital's dedicated gaming fund, according to a report by Waya Media.

The round makes Merak Capital, a Saudi investment firm, a backer of a UAE studio, extending the flow of Gulf institutional capital into the region's game development sector. Merak Capital operates a fund specifically targeting gaming companies, and Khosouf Studio is among the recipients of its deployments.

What this means for the region's studios

The deal size is small by global venture standards, but it signals continued institutional appetite for early-stage game development in the Middle East and North Africa. A USD 600,000 cheque typically funds pre-production or the first commercial release for a small team — covering a year or more of runway for a studio of roughly five to ten developers, depending on location and scope.

For UAE studios, the transaction adds another financing option beyond local accelerators and government-backed programs. Saudi firms deploying into the UAE also reflect the cross-border pattern now shaping MENA's games economy, where Saudi capital increasingly funds studios across the Gulf.

Neither company has publicly disclosed the valuation, the fund's total size, its stake in Khosouf Studio, nor the intended use of proceeds, according to the available reporting.

Khosouf Studio has not detailed its current projects, team size, target platforms, or engine of choice in the reported announcement. Watch for follow-on disclosures — a product reveal or the gaming fund's next deployment — as signals of whether this marks a one-off investment or the start of a broader UAE pipeline for Merak Capital.