The Middle East is in the midst of a gaming boom as countries in the region strive to diversify their economies.
The United Arab Emirates (UAE) have been at the forefront of the rush to embrace gaming, committing $1 billion to build an eSports Island in Abu Dhabi.
The funds have gone into building projects such gaming arenas, technology garages, and local game development studios. There are even more exciting developments in the pipeline.
Dubai has set up the Program for Gaming 2033, which is expected to create around 30,000 jobs and inject $1bn into the UAE economy as it bids to become a recognised superpower in gaming.
Gaming as Economic Infrastructure
According to Kevin Sebastian, the Head of Content and Partnerships at ITP Gaming, gaming has outpaced music and movies, forcing governments to take notice.
Increased localisation efforts have driven the Middle East gaming sector forward. Arabic has become one of the top five languages in gaming over the past few years.
Big companies such Sony and Ubisoft noted the change and established regional offices to better connect with their Middle Eastern audience.
The Middle East has a high density of young people who consistently stay engaged with games, making the region a market ripe for expansion.
The average revenue has risen from less than $5 per user to almost double that sum in four years – a sign of tremendous growth.
The UAE Takes a Calculated Gamble on Gambling
The UAE has also taken steps to embrace gambling by establishing an organisation to oversee licensing and regulatory matters in the country.
Gambling was previously prohibited in the UAE, but they are now releasing the brakes on the sector as they look to profit from a regulated industry.
The UAE inaugurated the General Commercial Gaming Regulatory Authority (GCGRA) last year, which was a clear signal they were making a U-turn on their gambling stance.
With the UAE allowing gambling infrastructure to develop alongside exciting gaming initiatives, they are creating a boisterous entertainment ecosystem.
The first land-based casino in the UAE is under construction. Meanwhile, online casinos in the UAE are already rampant, with foreign operators catering to Arab players.
Legalising gambling in the UAE will attract more tourists, generate increased hospitality revenue and create thousands of jobs.
With the gaming and iGaming markets converging via blockchain, non-fungible tokens (NFTs) and play-to-earn models, the UAE will establish an exciting new hybrid market.
This will attract international investors and developers who specialise in monetising digital entertainment and help the UAE become a major player in the gaming industry.
Innovation, Technology and the Next Level
The Middle East has spurred the gaming industry by investing in the latest technologies such as virtual reality (VR), augmented reality (AR) and blockchain.
Dubai has a VR Park – an excellent example of how modern-day technology is being used to improve the gaming experience.
Blockchain is creating new, profitable economic models for gaming companies via in-game transactions and ownership of digital assets.
According to Mayuri Prasad of Stream Shreek, these investments will propel the Middle East and North Africa (MENA) region to the front of the line in the race for gaming innovation.
Mobile gaming already dominates more than half of the market. This level of accessibility and scalability gives the Middle East massive growth potential.
