The face of gaming — especially the esports scene — is changing, and emerging markets are leading the way. According to Newzoo, a leading video game data analytics firm, the MENA region’s gaming revenues grew by 4.6 percent in 2023, with the number of players increasing by 11.3 percent. This is the highest growth rate worldwide.
The United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA) are two nations transforming the gaming landscape. As one of the largest gaming venture funds focused on this region, we’ll explore how these countries are shaping the future of gaming in MENA and what factors contribute to their leading role.
Visionary leadership and strategic initiatives
The UAE and KSA’s dominance in the MENA gaming industry is driven by visionary leadership and strategic initiatives. Both nations have recognized the gaming sector’s potential as a driver of economic diversification and cultural influence, leading to ambitious efforts to position themselves as global gaming hubs. Each brings its own growth strategy to the table.
Saudi Arabia’s ‘National Gaming and Esports Strategy’ focuses on creating diverse economic opportunities through gaming and esports, bringing fresh investment and attention to the region. The Savvy Gaming Group, backed by the Public Investment Fund (PIF) with a $38 billion investment, is crucial to this strategy. It focuses on developing the local gaming ecosystem, acquiring stakes in international gaming companies, and expanding the market for all.
The UAE’s broader approach further bolsters the foundations of the gaming industry in the region. Dubai and Abu Dhabi have launched initiatives to attract international gaming companies, develop local talent, and host major esports events.
The ‘Dubai Program for Gaming 2033’ and the Abu Dhabi Gaming initiative are examples of how the UAE creates a vibrant gaming environment that draws global attention. They also showcase the country’s commitment to supporting a thriving local community and expanding opportunities for game development within the region.
World-class infrastructure
Investment in world-class infrastructure is pivotal to both the UAE and KSA’s strategy to expand the gaming and esports landscape. Both nations are building state-of-the-art esports arenas and training centers. These projects are designed to host major international tournaments and foster local talent development.
Efforts are increasing in Riyadh, Dubai, and Abu Dhabi to establish esports event hotspots. Thanks to such efforts, Saudi Arabia, for instance, has attracted events like the PUBG Mobile World Invitational and the Gamers8 festival. Meanwhile, the UAE hosted the global ‘Counter-Strike’ finals, one of the most prestigious esports events in the world.
Both nations support these events with new facilities for hosting, training teams, and nurturing local gaming communities. This initiative is bringing fresh talent and investment to the MENA region.
Growing market demand
The explosive growth of gaming in both the UAE and KSA is largely due to their younger, more tech-savvy demographics.
In Saudi Arabia, 70 percent of the population is 35 years old or younger, while in the UAE, millennials make up 52.3 percent of the population. In both countries, these individuals, immersed in the digital age, are a highly engaged audience for the gaming industry.
Having grown up alongside the rapid evolution of gaming technology, they are now in their prime earning years and represent a key consumer base for gaming companies. This large, youthful population is enthusiastic about spending on the latest gaming experiences. This makes the markets in Saudi Arabia and the UAE incredibly attractive for game developers and gaming companies.
Supportive business environment
Economic stability and a business-friendly environment are crucial for leading international gaming investors like GEM Capital. The UAE and KSA stand out by offering clear rules of the game and streamlined business processes, making them prime destinations for global gaming companies seeking to establish a strong presence in the region.
Both regions offer tempting inroads for investors and studios wishing to set up shop.
The UAE provides an advantageous business climate for gaming companies. Free zones like Dubai Internet City and Abu Dhabi’s twofour54 provide tax exemptions and top-tier infrastructure. For example, they offer partial wage subsidies and first-class office spaces at favorable rates.
Saudi Arabia presents an equally tempting foothold in the region for global gaming firms with its range of incentives. The Saudi government has introduced reforms to simplify business operations, including streamlined licensing procedures, reduced corporate taxes for foreign companies, and fast-track business registration.
These benefits have attracted global gaming giants to the MENA region. Ubisoft and Epic Games have an established presence in the UAE, and the companies are setting up regional offices to capitalize on the growing local market. Meanwhile, Saudi Arabia has become a favorable destination for companies like Activision Blizzard, reflecting the country’s growing importance in the global gaming landscape.
Read more: Saudi Arabia to reap $13.3 billion from Esports and gaming by 2030: Report
Talent development and education
Another critical component of the UAE and KSA’s success in the gaming industry is their investment in talent development and education. Both countries recognize that sustaining current growth and innovation in the gaming sector requires a skilled workforce.
The UAE and Saudi Arabia have government-sponsored solid programs to foster gaming industry growth in the region, with studio partnerships and educational institutions being common focuses. Saudi Arabia’s notable projects include the Saudi Digital Academy and the NEOM Game Dev Challenge. At the same time, the UAE invests in efforts such as the AD Gaming Hub and the GEMS Education Esports and Game Design Academy.
Between these two countries, there’s now a strong foundation in the MENA region offering scholarships and training programs in collaboration with leading global institutions. These programs demonstrate the UAE and KSA’s long-term commitment to innovation and excellence in gaming, ensuring sustained growth in their gaming industries with a strong foundation for global success.
Considering all these factors, the UAE and KSA have rapidly emerged as leaders in the MENA gaming industry. Their visionary leadership and strategic initiatives, world-class infrastructure, youthful and tech-savvy populations, business-friendly environments, and focus on talent development are transforming the regional gaming landscape and attracting global attention.
Kirill Gurskiy is the managing director of GEM Capital, a gaming-focused investment firm.
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