Gaming revenues within the Middle East and Africa (MEA) region are projected to reach $7.2 billion in 2023, with Saudi Arabia emerging as a significant contributor to the sector’s overall expansion.
As per the Global Games Market Report from Newzoo, a prominent video game and gamer data company, the global gaming industry is anticipated to generate $187.7 billion in revenues during 2023, displaying a year-on-year growth of 2.6%. This growth trajectory is expected to continue, leading to annual revenues of $212.4 billion by 2026.
The mobile gaming segment is set to remain the largest in terms of consumer spending, constituting nearly half of the global gaming market. Consoles will follow as the second-largest segment, generating $56.1 billion in 2023, representing 30% of the overall market.
Tom Wijman, the Lead Games Analyst, stated in the report that the number of players is predicted to exceed 3.3 billion in 2023, accompanied by an increase in paying gamers. After a corrective phase in 2022 due to the pandemic, the gaming market is poised to resume growth in 2023.
Wijman attributes this resurgence to the release of highly anticipated delayed titles in 2023, with more slated for launch in the latter half of the year, alongside an improved supply of new gaming consoles.
The MEA region accounts for 17% of global players, boasting 574 million players and experiencing a noteworthy 12.3% year-on-year growth in player numbers – the highest growth rate worldwide.
The growth is attributed to factors such as improved mobile internet infrastructure, easily accessible and affordable mobile internet, and the rise of the middle class. The availability of gaming as an economical recreational activity, facilitated by the free-to-play model and a growing population of smartphone users, also plays a significant role.
Saudi Arabia has taken the lead in gaming investments within the MEA region, with the country’s Social Development Bank (SDB) valuing the Kingdom’s video games market at $1 billion and aiming to elevate this value to $2.5 billion by 2030.
The Newzoo report additionally attributes the industry’s growth in the region to entities like Saudi Arabia’s Savvy Games Group, which has dedicated nearly $8 billion to acquire and establish ownership in global gaming brands. The company also possesses a substantial $38 billion fund for future ventures in the sector. Savvy’s investment activities encompass acquiring stakes in China’s esports agency VSPO, Sweden’s Embracer Group, and the US-based Scopely. The company also owns ESL FaceIt, a significant organiser in the esports sector.
Saudi Arabia is currently hosting Gamers8: The Land of Heroes, a gaming and esports festival featuring a substantial prize pool of $45 million.
