With an impressive penetrative rate and firm commitments from governments to invest, the Middle East gaming market has raked in more than $5 Billion in revenue. It is expected to grow to $ 9.7 Billion by 2023. Spearheaded by Saudi Arabia, the leading player with over 48% share, the MENA market is forecasted to grow by 13.88% annually.
Saudi Arabia Investment Fund invested a whopping $3 Billion in this industry in 2022 as a part of the $48 Billion fund promised to Savvy Games Group. According to the Boston Consulting Group, 60% of the population in Saudi Arabia and UAE consider themselves gaming enthusiasts compared to the global average of 40%. Let’s dissect some of the reasons leading to this hyper-growth of the gaming industry in this region.
A Potent Ecosystem In the Making
Alexander Schedey of BCG speaks highly of this region and for good reason. The market is set to cross $821 million this year with plans to create more than 40000 jobs as part of its National Gaming and Esports Strategy. Under the tutelage of Crown Prince Mohammad Salman, Saudi Arabia aims to become a global gaming center by 2030.
Investments have been plenty. Savvy Games, the Public Investment Unit, has acquired Scopely of US for over $4.9 Billion. With many gamer hubs, Saudi Arabia intends to further their reach as it aims to move higher from its 5th position in gaming revenue worldwide.
Gamers8 disclosed the largest-ever pool prize in the gaming history of $45 million in a 2023 event. With increasing partnerships with foreign entities, gaming will accelerate healthcare, education, and other sectors, boosting the economy. Amsterdam-based MY.GAMES, a leading developer in PC games, formed an essential partnership with AD Gaming as it planned to open its headquarters in Abu Dhabi.
Moreover, DMCC has teamed up with Yalla Esports to launch more gaming centers and provide businesses with capital access. Not to forget, France’s Ubisoft, publisher of the famous Assassin's Creed games, has its headquarters in Abu Dhabi. Additionally, its young population with a deep interest in gaming is contributing to this fast growth. As such, the interest in playing mobile, casual PC games, and slot machine apps has skyrocketed over the years, and they have also monetized that. There are various top-ranking apps that are gaining huge market traction due to their seamless user interface and vast slot game collection. The HTML-responsive casino gaming apps entice both millennials and Gen Z who want to play slot games on the go.
Events like the Blast Premier Final will be hosted in Abu Dhabi. With a $1 Million bounty, it will see all famous Counter-Strike players worldwide flocking to the Middle East to battle it out.
Fast, Sustainable Localised Growth
What is even more inspiring is the youth considering jobs in this segment. Though less than 1% of the games are produced here locally compared to the ones played, under the effective leadership of the crown prince, this region will see an influx of jobs and more than 30 gaming centers by 2028-30. The proper infusion of funds at the foundational level, the swift network around the Middle East, and access to high-end tech are pushing the Middle East higher on the rungs when it comes to gaming. Moreover, this region headquarters the top gaming brands like Nintendo and others and is growing much faster than the West.
This article was written in cooperation with Sarah Sheikh