Middle East Gaming Market: Investment & Growth Opportunity Analysis, 2019-2028

The Middle East Gaming market is expected to witness a strong growth rate of more than 12% during the forecast period of 2022-2028. The proliferation of consumer electronic devices such as smartphones, laptops, VR headsets, etc. coupled with the increased internet penetration and easy availability of games on the internet are expected to fuel the regional gaming industry growth. Moreover, technological advancements and continued innovation in gaming infrastructure to enhance the real-time rendering of graphics are further expected to drive the regional gaming market.

Gaming also referred to as video games or electronic games, is computer software that adheres to a set of rules. It includes mental or physical stimulation that amuses and calms the participant or spectator. Gaming is an effective instrument that may aid children in learning important life lessons and aid educators in their search for ways to enhance classroom instruction. The gaming industry has changed due to the development of strong graphics engines and information technologies in recent times.

The Middle East gaming industry is anticipated to experience significant development as a result of an increase in the use of online gaming services following the recent COVID-19 outbreak. Because it is anticipated that different gaming suppliers would concentrate on growing their user bases now and seeing skyrocketing profits after COVID-19 scenarios, merchants are providing incentives, deals, and waiving costs for using their services. Large populations across the globe view gaming as one of their primary forms of entertainment. Playing video games is observed as a stress reliever for many people. Additionally, it serves to offer players a sense of accomplishment and the experience of working in a team. Therefore, it is anticipated that such a sense of joy and self-satisfaction will gain more traction in the coming years.

Rapid rise in smartphone penetration and mobile connectivity to propel market growth

Mobile gaming has been one of the most popular hobbies across the region and is recognized as one of the most fun smartphone activities. The growing popularity of mobile games is strongly related to technological developments such as 5G, virtual reality (VR), cloud gaming, and augmented reality (AR). The emergence of the hyper-casual game genre is another market trend. Due to its immersive and engaging features, augmented reality is increasingly ideal for mobile gaming. Additionally, the most downloaded AR genre in application stores is mobile games. Several new entries into the genre are being created by market players, such as Harry Potter: Wizards Unite and Minecraft Earth, in addition to previously, published AR mobile games that are still well-liked, such as Pokémon Go and Ingress.

Saudi Arabia is backed by constant support from Government, contributing to the growth of the Middle East Gaming market

Geographically, the Middle East Gaming Market is segmented into GCC (including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and UAE), Israel, Turkey, and the Rest of the Middle East. In GCC, Saudi Arabia is expected to hold a prominent market share over the forecast period owing to the increased private and public investment in the entertainment sector including gaming. The Saudi Arabian government is aggressively funding theme parks and entertainment venues with billion-dollar investments which incorporate VR games for entertainment, thus propelling the market growth. Moreover, the launch of charity e-sports competitions with attractive prize money has further escalated Saudi Arabia gaming industry growth in recent times. According to the RationalStat Analysis, the Saudi Arabia Gaming market is expected to surpass a US$ 2.2 Billion market value by 2028.

Market Structure and Competitive Landscape

Top gaming companies consistently make significant investments in creating new games and releasing them in a range of genres, both new and old. The company generates a large amount of money by connecting gamers from all around the world together through video game tournaments, leagues, and competitions. Most of the innovation in the video game industry comes from new ideas. Over the course of the next few decades, the gaming industry will undergo some substantial advancements in terms of new technology, better concepts, faster controls, and experiences, especially new genres.

The Middle East Gaming Market is characterized by the presence of various players operating in the market including Rockstar Games, Inc., Microsoft Corporation, Bandai Namco Entertainment Inc., Nintendo Co. Ltd., Tencent Holdings Ltd., Sony Corporation, NetEase Inc., Nexon Company, Wixel Studios, Apple Inc., Game Cooks, Electronic Arts Inc., Ubisoft Entertainment SA, Sega Sammy Holdings Inc., Falafel Games, Activision Blizzard Inc., and Take-Two Interactive Software among others. These players adopt various strategies in order to reinforce their market share and gain a competitive edge over other competitors in the market. Mergers and acquisitions, partnerships, and collaborations are some of the strategies followed by industry players. Some of the key developments in the Middle East Gaming Market include, 

• In February 2022, Zain Esports and the region’s fast-growing gaming start-ups, PLAYHERA, have announced a joint venture (JV) agreement to launch PLAYHERA MENA, targeting the region’s lucrative gaming market which counts an estimated 100 million gamers. The new JV will establish its HQs in Riyadh, Saudi Arabia, with offices across Zain’s footprint.
• In February 2022, Saudi Arabia’s Public Investment Fund has purchased a 5% stake in the iconic Japanese game’s developer Capcom and just over 5% of South Korean online games publisher Nexon for a total investment worth USD 1.0 billion.
• In August 2020, OPPO, a smartphone brand, partnered with Dubai Summer Surprises to create a gaming extravaganza for the youth. The challenge was developed to engage gamers in the country with a uniquely designed, socially distant gaming arena at the Mall of the Emirates.

Key Market Segmentation

RationalStat has segmented the Middle East gaming market on the basis of game type, gamer type, device type, and region.

• By Game Type
  • Real Time Strategy (RTS)
  • Role-Playing (RPG)
  • Multiplayer Online Battle Arena (MABO)
  • Shooter (FPS and TPS)
  • Simulation and Sports
  • Others (Sandbox)
• By Gamer Type
  • Casual Gamers
  • Professional Gamers
• By Device Type
  • PC
    • Browser PC Games
    • Download PC Games
  • Console
    • Xbox
    • PlayStation
    • Nintendo Switch
    • Others
  • By Region
    • GCC
      • Bahrain
      • Kuwait
      • Oman
      • Qatar
      • Saudi Arabia
      • UAE
    • Israel
    • Turkey
    • Rest of Middle East

Research Methodology

RationalStat has developed a state-of-the-art research methodology to crunch numbers and provide the best possible real-time insights to clients. We combine a varied range of industry experience, data analytics, and experts’ viewpoint to create a research methodology for market sizing and forecasting.

RationalStat combines a mix of secondary sources as well as primary research to assess the market size and develop a forecast. Key steps involved in accurately deriving the market numbers are:

• Defining the problem by understanding the type of market and data required by the client.
• Data gathering and collection through relevant paid databases, publicly available sources, company reports, annual reports, surveys, and interviews.
• Formulating a hypothesis to create market numbers, forecast, influencing factors, and their relevance.
• Evaluating and analyzing the data by referring to data sources utilized and leveraged.
• Validating, interpreting, and finalizing the data by combining the details gathered from primary and secondary sources with the help of experienced analysts.

Secondary Sources

• Annual reports, company filings, investor presentations, product catalogs, and company documents
• Industry and market-related documents available in the public domain
• Paid database including Bloomberg, Factiva, S&P Capital IQ, FactSet, Refinitiv Eikon, ICIS, EUWID, Thomson Reuters, among others
• Whitepapers, research papers, and industry blogs.

Why Buy this Report?

The report is intended for game developing and designing companies, media & entertainment companies, government organizations, educational organizations, regulatory agencies, and market research firms, among others. The report provides an in-depth analysis of market size, consumption pattern, ongoing market trends and challenges, and future market opportunities. The report will serve as a source for a 360-degree analysis of the market thoroughly delivering insights to clients to find the right answers to their business questions.

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