Gaming and Esports: Middle East's Economic Stars

Over the past decade, gaming has undergone a dramatic transformation, evolving from a simple recreational activity into a massive global industry that captivates millions of individuals across all continentsThe rise of digital entertainment, fueled by technological advancements, has turned gaming into a primary mode of engagement for younger generations, particularly those within Generation Z and the millennial cohortWhat was once seen as a niche activity for enthusiasts has now become a mainstream cultural phenomenon, and its impact extends far beyond the gaming consoles and computers in living rooms.

Statistics tell a compelling story about the extent to which gaming has infiltrated daily lifeAccording to a study by the Dubai Multi Commodities Centre (DMCC), around 80% of both Generation Z and millennials consider themselves gamersOn average, individuals between the ages of 25 and 40 dedicate approximately seven hours per week to gaming

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These numbers illustrate a profound shift in how people engage with entertainment, making gaming one of the most significant pastimes for the digital-savvy populations of today.

While traditional forms of entertainment, such as television and cinema, still retain a significant following, the rapid rise of esports has reshaped the entertainment landscapeEsports, competitive video gaming, has evolved from a fringe interest into a billion-dollar industry with viewership numbers that sometimes surpass those of established sports leagues like the NBAThe expanding global interest in esports is not just a trend but a permanent shift, one that reflects a deeper cultural change in how people experience sports, competition, and entertainment in the digital age.

The financial impact of gaming and esports has been equally dramaticThe global gaming market was valued at approximately $198.4 billion in 2021 and is expected to reach a staggering $340 billion by 2027, growing at an annual compound rate of nearly 9%. By the end of 2023, the number of gaming enthusiasts worldwide is expected to surpass 3.3 billion people, a substantial increase from previous years

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The growth is primarily driven by mobile gaming, which has introduced millions of new players to the ecosystemThis sector's ability to engage players across a wide range of devices and platforms has been central to the gaming industry's explosive growth.

In addition to the growth of the player base, the number of paying players is also increasing significantlyBy 2023, approximately 1.43 billion people were paying for gaming services, and this number is expected to grow to 1.59 billion by 2026. This increasing willingness to spend on gaming-related content, subscriptions, and in-game purchases has solidified gaming as one of the most profitable entertainment sectors in the world.

From a financial perspective, the period between 2015 and 2021 saw an unprecedented influx of capital into the gaming sectorWith 4,783 transactions and total investments reaching $87.73 billion, the gaming industry's appeal to investors has never been more apparent

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The year 2020, in particular, marked a peak in investment activity, with 627 deals worth $24.72 billionThis flood of investment reflects the growing recognition of gaming's potential as both a cultural and economic powerhouse.

Parallel to the gaming industry's ascent, esports has also experienced explosive growthBy 2025, the number of esports enthusiasts is projected to surpass 318 million, up from 215.2 million in 2020. In the same period, the number of people regularly watching esports competitions is expected to rise to over 320 million, with engagement continuing to climb well into the next decadeIn fact, esports' global revenue is expected to surge from $1.72 billion in 2023 to $6.75 billion by 2030, driven by a compound annual growth rate of 21.5%.

The MENA (Middle East and North Africa) region has emerged as one of the fastest-growing markets in the global gaming industry

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With a population of approximately 500 million, of which over 60% are under the age of 30, MENA represents a key demographic for both gaming and esportsThe DMCC forecasts that digital gaming revenues in the region will more than double by 2027, reaching nearly $6 billionThe rapid growth of the gaming market in MENA is attributed to several factors: a youthful population that is highly engaged with digital technologies, widespread internet connectivity, and a growing desire for modern entertainment experiencesMoreover, government initiatives and infrastructure investments are helping to foster a thriving gaming culture, further accelerating growth in the region.

Within MENA, three countries stand out as the key drivers of this growth: Saudi Arabia, the UAE, and EgyptCollectively known as the "MENA Triad," these nations have seen significant growth in gaming revenues, which reached $1.76 billion in 2021. By 2025, this number is expected to increase to $3.14 billion, representing a solid compound annual growth rate of 13.8%. The player base in these countries is also expanding rapidly, with expectations that the number of gamers will grow from 65.3 million in 2021 to 85.8 million by 2025.

Esports in MENA is also poised for significant growth

From 2019 to 2024, the region’s esports revenue is projected to grow at an impressive rate of 23.3% annuallyThis is largely driven by the young, tech-savvy population, the increasing involvement of international broadcasters and sponsors, and government efforts to position the region as a hub for esportsSaudi Arabia and the UAE, in particular, have introduced economic diversification strategies aimed at bolstering the creative and cultural industries, with gaming and esports at the forefront of these initiatives.

This rapid expansion of the gaming and esports sectors in MENA reflects broader global trends, such as the increasing convergence of gaming, entertainment, and digital cultureOver the past few years, the lines between gaming and other forms of entertainment have become increasingly blurred, with gaming platforms integrating aspects of social interaction, live streaming, and multimedia content

This trend is particularly evident in the rise of platforms like Twitch and YouTube Gaming, which have turned gaming into a form of interactive entertainment that attracts millions of viewers and content creators alike.

The rise of virtual reality (VR) and augmented reality (AR) is expected to further revolutionize the gaming industry in the coming yearsVR gaming, which allows players to immerse themselves fully in virtual worlds, and AR, which blends digital elements with the real world, are poised to reshape the way gamers interact with their environmentsThese technologies are expected to unlock new opportunities for game developers and players alike, creating even more immersive and engaging gaming experiences.

As the global gaming market continues to expand, the future looks bright for both the gaming and esports industriesWith increasing numbers of players, a rapidly growing fanbase, and new technological innovations on the horizon, the potential for gaming as an economic and cultural force has never been greater

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