The Middle East is firmly on course to make its presence felt in one of the world’s most competitive and lucrative entertainment sectors.
The explosion is backed by investors with deep pockets, forward-thinking government policies, grassroots talent and a shift in cultural mindset among many local citizens.
There have been plenty of blockbuster acquisitions and strategic partnerships launched which send a strong message about the emergence of the Middle East as a gaming powerhouse.
And while console and PC gaming still have their place, mobile gaming is the crown jewel due to its affordability and accessibility.
A New Era of Gaming in the Middle East
The gaming craze in the Middle East started when cultural, economic and technological goals aligned, moving the region from the peripheral market to the spotlight.
Countries such as Saudi Arabia and the United Arab Emirates (UAE) recognise that gaming has the capacity to drive employment, diversify economies and project soft power around the world.
The Saudis have ambitious targets. They want to create 39,000 new jobs, 250 new gaming companies and build a creative industry fuelled by government and private capital.
They are sparing no expense to make sure they hit their targets. Only a few regions have put their money where their mouth is like the Middle East has.
The centrepiece of this funding bonanza is Saudi Arabia’s Savvy Games Group, a subsidiary of the country’s Public Investment Fund (PIF).
Savvy is leading this transformative charge and has reserved $38 billion for gaming and eSports. In one of its most headline-grabbing moves, Savvy paid $4.9bn to acquire mobile gaming giant Scopely.
It didn’t stop there. Scopely is set to acquire Niantic’s games division. When that deal goes through, they will bring global gaming hits such as Pokemon GO into the fold, which is arguably the most recognised augmented reality (AR) mobile game of all time.
With ownership stakes in two of the most iconic mobile games on the planet, the Middle East is not just dipping their toes into the industry – it wants to dominate.
And it helps when your country’s de facto ruler is a gamer himself. HRH Mohammed bin Salman Al Saud, the poster boy for this movement, is famous for his personal enthusiasm for gaming.
The iGaming sector – A Quiet Giant Waiting to Awaken
Traditional mobile gaming dominates the headlines, but iGaming presents a massive opportunity for growth in the Middle East. The iGaming industry is a multi-billion-dollar global industry.
It is largely restricted or tightly regulated in much of the region because of religious and legal constraints, but some countries are exploring more progressive frameworks.
Kuwait is one to watch. It is not recognised as an iGaming hub, but there’s a budding interest in online gambling platforms and virtual competitive games among citizens.
There are already numerous real money online casinos in Kuwait, but they are licensed and regulated by authorities in other established iGaming jurisdictions.
Local start-ups are experimenting with blockchain-based games, digital collectables and fantasy eSports platforms, which offer similar engagement to betting without technically violating laws.
If properly regulated and framed within ethical parameters, mobile iGaming could unlock new revenue streams in countries looking for ways to modernise their digital economies without fully embracing traditional gambling.
The demand is already there. Mobile penetration is high, smartphone usage is near-universal among younger citizens, and digital payment platforms are growing rapidly.
Government Support Goes Beyond the Cheque Book
Some Middle East governments have opened their cheque books to capitalise on gaming and the trend shows no signs of slowing down.
Saudi Arabia and the UAE offer generous tax incentives, including 30-year corporate and withholding tax holidays for qualifying gaming companies that establish headquarters in the region. In an industry where margins can be razor-thin, such incentives are irresistible.
Key figures such as Prince Faisal bin Bandar bin Sultan Al-Saud are acting as gaming ambassadors, travelling to Japan and other nations to lobby top studios to set up shop in the Middle East.
This is a coordinated, top-down push to make the Middle East a global gaming capital.