Saudi Arabia and the United Arab Emirates (UAE) are poised to lead the gaming industry in the Middle East and North Africa (MENA) region, propelled by a young and digital-savvy population, and high levels of digital connectivity. Together, the Arab world’s largest economies drive the sector toward a valuation of $6 billion by 2027.
Gaming in MENA
The gaming revenues in the region are projected to double by 2027, according to a recent report titled “Gaming in the Middle East and North Africa (MENA): Geared for growth” by Dubai Multi Commodities Centre (DMCC).
Ahmed Bin Sulayem, Executive Chairman and CEO of DMCC, accentuated the significance of gaming in the MENA region, which now accounts for 15% of the global player base. “The rise of gamification in areas such as education, healthcare, and other sectors has demonstrated gaming’s role in facilitating economic activity more broadly,” he said.
- By 2027, MENA digital gaming revenue is expected to almost double from 2021.
- MENA’s top three gaming markets are Saudi Arabia, the UAE, and Egypt.
KSA: Saudi Arabia is making significant investments in the gaming industry. Savvy Games, a wholly owned entity of the Public Investment Fund, acquired US-based gaming company Scopely for $4.9 billion. In February 2023, Savvy invested $265 million in Chinese esports firm VSPO. Recognizing gaming as a core element of its Neom project, Saudi Arabia has already invested over $1.7 billion in the gaming industry.
UAE: Thanks to its strong business environment, the UAE has attracted various international gaming developers, with companies like Ubisoft and Chinese gaming giant Tencent setting up their regional headquarters in Abu Dhabi and Dubai, respectively.
Global Gaming Market
The gaming and esports sectors are witnessing a remarkable surge in growth, fueled by rapid technological advancements. In the MENA region, the UAE and Saudi Arabia are at the forefront. However, on a global scale, the Asia Pacific region boasts the largest market share, with China, the US, and Japan emerging as the leading individual markets.
Other leading countries in terms of estimated gaming revenue in 2022 are South Korea, Germany, UK, France, Canada, Italy, and Brazil. Meanwhile, Turkey will be the fastest-growing video games market between 2021 and 2026 followed by Pakistan and India.
The global gaming market is expected to reach a value of US$340 billion by 2027 from $200 billion in revenues in 2021.
- With an estimated 1.7 billion mobile gamers worldwide, mobile devices including smartphones, tablets, and other portable appliances are the most popular platform for gaming and esports.
- The AR and VR gaming market could reach $26 billion by 2026.
Rising popularity of esports
Esports is a closely watched segment, expected to achieve revenue growth of 23.3% in MENA between 2019 and 2024. The region’s young demographic, engagement from international broadcasters and sponsors, and government support contribute to this growth. By 2025, there will be over 318 million esports enthusiasts worldwide.
Saudi Arabia’s esports tournament organizer called Gamers8 announced a record-breaking prize pool of $45 million for its 2023 event, the largest in esports history.
