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According to DMCC’s Future of Trade 2023 Report titled “Gaming in Middle East and North Africa: Geared for Growth”, gaming revenues in the Middle East & North Africa region are expected to nearly double from 2021 to 2027, reaching USD $6 billion. The region is becoming a hub for consumers and creators due to its young, digitally-savvy population and high levels of connectivity.
Both gaming and esports have fast-growing consumer segments. They benefit from rapid technological advancements as well as wider and more inclusive audiences. The UAE and Saudi Arabia are the leaders in this region. This is due to their high incomes, digital engagement and public investment initiatives. Asia Pacific is the world’s largest market, with China, the US, and Japan as the top three individual markets.
The report brings together contributions from industry leaders in order to identify the key drivers for the industry’s accelerated development, both within the MENA and beyond. The report also looks at the impact of gaming and esports on a business, technology and culture perspective. It covers global consumer trends and the emergence MENA as a hub for gaming and esports, along with the challenges the industry must address in order to grow revenues.
The report provides a series of recommendations to help governments and business accelerate the growth of the global industry from USD 200 billion revenues in 2021 up to USD 340 in 2027.
- To boost revenue, diversify esports revenues from sponsorships to new direct-to fan monetisation methods – such as digital merchandising and loyalty programmes for amateur gamers.
- Create appropriate regulatory safeguards for privacy, security and online safety in the digital gaming eco-system. Also, provide a business friendly environment including easier visa systems that allow esports audiences and professionals to attend live events. This will attract talent to the region and help it become a global leader.
Ahmed Bin Sulayem said that gaming has become a major entertainment in the world, with a rapid growth, especially in the MENA area, which represents 15% of global players. Gamification has been a growing trend in many sectors, including education, healthcare and others. This shows how gaming can facilitate economic activity. The future of global markets and trade will be impacted by ensuring the growth of the gaming industry. In order for DMCC to cement Dubai’s reputation of a global economic and trade hub, it is essential that the gaming sector be efficiently activated.
Among the most closely followed segments in MENA is esports. It is predicted that revenue will grow by 23.3% from 2019 to 2024. The young population of the region, international broadcasters, sponsors and government support are all factors that contribute to this. DMCC partnered up with YaLLa Esports to launch the DMCC Gaming Centre, a professional esports organization based in Dubai, by December 2022. The centre supports the growth of Dubai’s gaming industry by giving access to global capital and leading industry talent. It also provides an ecosystem which allows businesses to operate efficiently and confidently.
Due to its strong business environment, infrastructure and status as a hub for the Middle East and Asia Pacific, many international gaming developers set up regional headquarters in the UAE. Ubisoft has its regional headquarters in Abu Dhabi while Tencent, the gaming giant, set up their MENA HQ along with Riot Games in Dubai. Saudi Arabia has made gaming a key element of the Neom project, and has invested over $1.7 billion in the gaming industry.
