In an era of technological advancements, governments have to capitalize on the power of innovative industries, such as video gaming, that strongly appeal to younger generations. Mayuri Prasad, business partnership lead at Stream Shreek, noted in June that gaming in the Middle East “appeals to a broad demographic, especially the youth, ensuring a larger market and consistent revenue from in-game purchases and esports.” The latter refers to competitions with prize money in specific games to see who is best.
In the Middle East and North Africa (MENA) region, the gaming economy has exploded from a niche interest to a mainstream powerhouse that boosts economic growth. Saudi Arabia, the UAE, and Egypt (known collectively as MENA-3) are leading this growth, hosting tournaments and investing in gaming infrastructure, according to a 2024 report by PricewaterhouseCoopers (PWC). The report estimated the number of gamers in the region reached 68 million in 2022, rising to 87 million by 2026.
This potential target market has already motivated the GCC region to leverage the gaming industry’s economic benefits. “The Middle East is a unique market for gaming,” said a June 2023 Boston Consulting Group report. “Governments in the GCC region have invested heavily in the industry and recognized its potential, implementing strategies to attract gaming companies.” Egypt, despite ongoing efforts, lags noticeably.
Built for profit
With more youths playing video games, the “gaming economy” significantly contributes to the global economy, generating substantial revenue. An October report released by global advertising and marketing firm Dentsu said the gaming industry is now bigger than music and movies combined, emphasizing that corporations need to include it in their media strategy.
The vast consumer base for video games makes them a potential goldmine for advertisers. According to Visa Global Economic Insight in April, “Gamers are emerging as an attractive, lucrative consumer segment and a force to be reckoned with globally.” It indicated that by 2026, video game players worldwide are expected to reach 3.8 billion, almost half the world’s population.
In-app game advertising is an incredibly lucrative option for brands. According to PWC Insights, global in-app game ad revenues will increase at a 15.4% average annual growth rate from 2023 to 2028, reaching $147.9 billion.
Sarah Stringer, global chief of innovation at Dentsu, noted that brands should “harness the power of time spent and engagement in gaming spaces.” Meanwhile, the Dentsu report said the sector offers authentic engagement compared to traditional media.
To fully leverage such potential brands should be “active participants and build credibility with these communities by supporting the games that players subscribe to,” Brent Koning, EVP global gaming lead at Dentsu, noted.
He added, “A thoughtful gaming strategy will then be rewarded by consumers, with brand love, when the value exchange is created for the player.”
Meanwhile, the gaming economy is positioned as one of the fastest-growing sectors in the entertainment and media industry. According to PWC’s July insights report, global video game revenue, including esports, reached $227.6 billion in 2023. It is on track to top $300 billion in 2028 and is expected to account for 9% of the entertainment and media industry.
The Global Games Market Report 2024 by Newzoo, a specialized think tank, forecasted the global games market alone will generate a revenue of $187.7 billion in 2024, representing 2.1% year-on-year growth from $184 billion in 2023.
Remarkably, revenues from selling PCs, the smallest segment, are expected to outpace mobile and console revenues this year, increasing 4% year-on-year to $43.2 billion. The number of global players should reach 3.42 billion this year, a 4.5% year-on-year increase, the report noted.
The Newzoo report showed that live-service games, which their developers continually update, like League of Legends, Fortnite, and Counter-Strike, keep players engaged, attracting a growing share of total playtime and subsequent spending.
Additionally, games-as-platform titles, such as Roblox and Fortnite, which are multi-player games with an open virtual world to explore, are evolving and reinventing themselves, attracting growing Gen Z (Born between 1995 and 2009) and Alpha (2010 to 2025) to 2025) audiences.
MENA a hub
The Middle East’s gamer economy has grown significantly and attracted investment. Alexander Schudey, managing director and partner at Boston Consulting Group, said, “The Middle East is a key player in the global gaming industry, with an impressive penetration rate and a strong commitment from governments to invest in the sector.”
Schudey said the region’s focus on gaming and establishing dedicated gaming hubs make it an attractive destination for global companies. The gaming ecosystem in the region targets the young and digitally savvy population, particularly in Saudi Arabia, where 70% of the population is below the age of 30, in addition to the higher disposable incomes and a preference for indoor activities due to hot weather, he explained.
Dentsu’s report highlighted that in 2024, 92% of those below 30 in MENA-3 are gamers, representing 70.7 million consumers, up 3.3% year-on-year.
A June 2023 Boston Consulting Group report indicated that games account for up to 50% of all apps downloaded in the region, compared to 40% globally. “MENA, and particularly GCC countries, are among the most exciting global markets for the growth of the games industry,” according to a report by Niko Partners, a market research company specializing in gaming.
It explained that MENA offers “greener pastures, with a booming gaming audience and high spending, providing huge opportunities for companies that can navigate its cultural landscape.”
Gaming revenues in the Middle East and Africa were $7.2 billion in 2023, according to an August report by PWC. The MENA-3 video game market alone generated revenue of $1.9 billion in 2023, up 7.8% from the previous year, the Niko Partners’ report said.
The MENA-3 video games market is set to grow 8.2% in 2024, with revenue of $2.1 billion, and is forecasted to reach $2.9 billion in 2028, growing at a five-year CAGR of 8.3%.
Another survey published in April from Niko Partners showed the top three most played games in the MENA-3 region are PUBG, EA Sports FC, and Call of Duty.
Esports, where games compete with each other in tournaments for prize money, is also a big opportunity throughout MENA-3. The Dentsu report indicated that 22% of gamers in the region are interested in esports, 12% higher than the global average.
Brands should seek to capitalize on the size and viewability of esports in MENA-3 countries. “In the region, gaming isn’t another media channel, it’s a highly connected ecosystem where some of the most awe-inspiring content is created and interacted with for hours every single day, so gamers’ expectations are super high,” said Jon Holloway, regional managing director at Dentsu Creative MENA. “Brands need to evolve and play with who they are and how they show up to match this expectation.”
Saudi gaming scene
Saudi Arabia is emerging as a critical growth player dominating the esports scene. Esports and the gaming sector could contribute as much as $13.3 billion to Saudi Arabia’s annual GDP and generate nearly 39,000 jobs by 2030, according to a study commissioned by PWC and the Saudi Esports Federation.
“Through strategic investments and a dedicated focus on talent development, we are building an ecosystem that positions the kingdom as a global leader in esports,” said Turki Alfawzan, CEO of the federation. He added that esports is not only a thriving industry “but a key pillar in our economic diversification efforts under Vision 2030.”
Saudi Arabia will host the inaugural Olympic Esports Games in 2025 under a 12-year agreement with the International Olympic Committee. Abdulrahman Kanafani, consulting partner for government and the public sector at PWC Middle East, noted that Saudi Arabia is revolutionizing the esports and gaming sector, unlocking opportunities for aspiring gamers and entrepreneurs to excel.
He said Saudi Arabia has launched groundbreaking intellectual properties, “incentivizing the private sector and transforming global governance standards. These efforts [position] the country as a vibrant and influential hub for esports and gaming.”
Saudi consumers’ engagement with gaming content is a crucial driver for spending in the market. A research paper by Deloitte in 2023 said 55% of gamers are inspired to purchase gaming-related products and services based on advertising within game content, and 25% have bought non-gaming products or services through advertising within game content.”
Notably, Deloitte highlighted that 48% of gamers are female, and 44% of all gamers are between the ages of 18 and 35.
Saudi Arabia’s gaming strategy is funded by Public Investment Fund-backed Savvy Games’ $37.8 billion planned investment across four essential programs to enhance game development and support early-stage companies and industry partners, ultimately expanding Savvy’s expertise and portfolio.
UAE market
The UAE also recognizes the vast potential of the gaming economy. An April whitepaper by Investopedia, a UAE-based platform, showed the domestic gaming market generates $350 million in revenue, with a significant portion coming from mobile games.
About 76% of gamers in the UAE use smartphones or tablets, demonstrating a preference for mobile gaming over console and PC gaming, according to the research.
The UAE gaming market is projected to reach approximately $492 million by 2027, as per a report by data aggregator Statista’s Insights. They estimated the number of UAE gamers will reach 1.7 million by 2027.
The UAE is keen to position itself as a top 10 global gaming hub. Dubai launched its ‘’Programme for Gaming 2033” to “boost the sector’s contribution to the growth of Dubai’s digital economy and increase the GDP by approximately $1 billion by 2033,” according to an article by Emirates News Agency (WAM), published in September. The program is expected to generate 30,000 jobs in the gaming sector.
Dubai also launched the Dubai gaming visa, which targets attracting and supporting talented pioneers in the gaming sector, WAM noted. In addition, it will host the Games of the Future 2025, bringing together thousands of athletes and esports professionals from up to 100 countries.
Time to play
Egypt, on the other hand, is still not capitalizing on the potential of the gaming economy despite having almost 59% of MENA-3 gamers with a significantly higher percentage of gamers under 25 years old, according to a report by Niko Partners in partnership with the Saudi Esports Federation in August.
Of total MENA-3 gamer spending on video games in 2023, Egypt accounted for 10.5% compared to Saudi Arabia with 57.6% and the UAE with 31.9%, the report added.
Egypt should strive to maximize investments in the gaming industry. With the global esports market projected to reach $6.75 billion by 2030, “Egypt can tap into this growing market by supporting local startups in developing competitive gaming platforms and related technologies,” said Mohamed Abdelmotaleb, vice president and head of National Basketball Association Egypt in June.
As a result, he explained that “Egypt can create numerous high-skilled jobs in software development, engineering, data science, and sports management, helping mitigate unemployment among youth.”
Meanwhile, leveraging the gaming industry’s potential could also boost international investments, “positioning Egypt as a hub for innovation in this field,” Abdelmotaleb said.
This article first appeared in December’s print edition of Business Monthly.
