The Middle East and North Africa (MENA) region is set to see an influx of private investments in the gaming sector, with Chinese tech giants like Tencent and NetEase eyeing the region’s market, while global biggies such as Sony Interactive Entertainment, Ubisoft and Activision Blizzard and home-grown companies such as GameCentric already begun investing and expanding their partnerships in the region, industry insiders said.
The rush of entry and investment plans of global majors comes amidst the Middle East market seeing a transformative shift in corporate brand engagement strategies with increasing integration of gaming into advertising, which is predicted to drive substantial economic growth and financial success for businesses in our region.
Along with spike in private investments, the UAE and Saudi Arabia are also said to be planning to further step up public investments in the sector to bolster infrastructure and develop local talent with the ambitious plan of turning the region into a global gaming hub.
“The GCC and the wider MENA gaming market is poised to witness an influx of both international and regional players in the short-to-medium term, as the industry giants recognise the region’s growing significance and the immense potential it holds for gaming,” Saad Khan, Founder and CEO of GameCentric and Gamers Hub Media Events, told Arabian Business.
“Moving forward, we anticipate that this trend will persist, with more international and regional players recognising the lucrative opportunities presented by the region’s gaming landscape,” added the top honcho of GameCentric, which itself is currently in the midst of an ambitious expansion plans in the region.
Khan said prominent brands such as Sony Interactive Entertainment, Ubisoft, and Activision Blizzard have already begun investing in and expanding their partnerships within the MENA market, and “we can also anticipate major competition from Chinese tech giants like Tencent and NetEase who are eyeing the region’s market to cash in on its promising growth trajectory.
Additionally, the continued rise of regional studios leveraging local knowledge and cultural understanding is also expected, he said.
“These anticipated entrants – ranging from established global players to emerging regional studios and indie developers – underscore the dynamic and diverse nature of the GCC/MENA gaming market.
“This also promises to heighten competition and increase innovation which will benefit gamers across the region in a big way,” Khan said.
Vlad Belyanin, co-founder and CPO of True Gamers, another leading international major in esports which is currently eyeing major expansion in the MENA region, also said with active support of some of the regional governments, especially the UAE government, more and more international companies and startups will be opening their offices and investing in growth in the region.
“In just six months in the market, our team has grown by 230 percent. We have seen firsthand how Dubai’s gaming infrastructure is evolving,” he told Arabian Business in a recent interview.
Brands leveraging gaming as lucrative advertising avenue
Industry experts said amidst projections of cloud gaming, and AI-powered experiences set to revolutionise player engagement and interaction, the region’s market is already seeing a notable surge in brands leveraging the sector as a lucrative advertising avenue.
The shift is not solely driven by consumer interest but also by brands recognising its potential for significant economic gains, they said.
“With gaming’s burgeoning popularity among Gen Z and millennials, brands are strategically investing in in-game sponsorships, product placements, and virtual events to maximise their ROI,” Khan said.
“These initiatives not only enhance brand visibility but also yield tangible financial returns, making gaming advertising a highly lucrative venture,” the GameCentric founder said, adding that this lead to more investments in the sector going forward.
He also pointed out the increasing trend of local governments in the region making significant investments and implementing initiatives to promote esports, recognising the sector’s potential to drive economic growth and social development.
“Collectively, these factors will position the GCC and MENA region as a promising destination for gaming industry stakeholders, underscoring its potential to emerge as a prominent hub in the global gaming landscape,” he said.
Call for clear regulations to ensure fairness in the sector
The anticipated surge in investments and influx of global players has, however, highlighted the urgent need for framing sound regulatory norms for the gaming industry locally and regionally.
Additionally, the anticipated surge in culturally specific games is also adding to the rising demand for regional representation.
“With this growth comes the need for clear regulations to ensure fairness, address concerns, and establish a sustainable future for the industry,” Khan said.
“Equally important is the cultivation of talent to foster a robust regional development ecosystem,” he added.
The call for clear regulatory norms comes amidst projections of the MENA gaming market hitting $6 billion by 2027, from an estimated $3 billion in 2021.
The UAE, Saudi Arabia and Egypt have emerged as the top three gaming markets in MENA, boasting sizable gamer populations, substantial revenue, and promising growth prospects.
“Looking ahead, we anticipate the MENA gaming industry to approach $9 billion within the next five years, driven primarily by the dominance of mobile gaming, followed by console and PC gaming,” the GameCentric founder said.
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