Gaming revenues in the Middle East and North Africa (MENA) are poised to experience a remarkable surge, nearly doubling by 2027.
A report, titled “Gaming in the Middle East and North Africa (MENA): Geared for growth,” anticipates that revenues in the region will soar to a staggering $6 billion.
According to the study, this phenomenal growth can be attributed to several factors: a youthful population well-versed in digital technology, extensive digital connectivity, and significant governmental backing, all of which are propelling the MENA region towards becoming a flourishing center for both gaming enthusiasts and creators alike.
The Middle East’s gaming industry is experiencing rapid growth, fueled by advancements in technology and an increasingly diverse and inclusive audience. Leading the region are the UAE and Saudi Arabia, supported by their high income levels, strong digital engagement, and public investment initiatives.
On a global scale, the Asia Pacific region holds the largest market share, with China, the United States, and Japan being the largest individual markets.
The report features insights from industry leaders such as Jad El Mir, Partner at Strategy&, and Klaus Kajetski, CEO and Founder of YaLLa Esports. These contributions shed light on the crucial factors driving the accelerated growth of the gaming and esports industries in the MENA region and beyond.
From a technology, culture, and business perspective, the report examines the impact of gaming and esports, covering global consumer trends, the rise of MENA as a gaming and esports hub, and the key challenges that the industry must address to further increase revenues.
With the goal of guiding the global industry towards accelerated growth, from nearly $200 billion in revenues in 2021 to an estimated $340 billion in 2027, the report presents a set of key recommendations for governments and businesses to consider, including:
- Diversify revenue sources in the esports sector beyond sponsorship by exploring innovative direct-to-fan monetisation models. This could involve leveraging digital merchandising, loyalty programmes, and training platforms for amateur gamers to enhance overall revenues.
- Establish robust regulatory measures to safeguard privacy, security, and online safety within the digital gaming ecosystem. Creating a business-friendly environment that prioritises these aspects will contribute to the industry’s growth and sustainability.
Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC, said, “Gaming has come to the fore of entertainment globally, driving rapid growth especially in the MENA region, which now constitutes 15 per cent 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. Ensuring the accelerated growth of the gaming sector will have a measurable impact on the future of markets around the world, as well as the future of trade.”
Esports stands out as one of the highly anticipated sectors, projected to achieve a remarkable revenue growth of 23.3 percent in the MENA region from 2019 to 2024.
This surge is driven by several factors, including the youthful demographic of the region, active involvement of international broadcasters and sponsors, and substantial support from governments.
Notably, Saudi Arabia has prioritised gaming as a key component of its Neom project, making significant investments of more than $1.7 billion in the gaming industry.
