Gaming Edition

Data Classification: Sensitive
GEARED FOR GROWTH:
GAMING AND ESPORTS IN THE MIDDLE
EAST AND NORTH AFRICA

This publication serves as the first in-depth DMCC
(Dubai Multi Commodities Centre) thought leadership
report on the global and local gaming and esports
ecosystem. It gathers contributions from key opinion
leaders to share their views on where the gaming and
esports industry is heading and places emphasis on
the drivers of gaming and esports from a technology,
culture and business perspective; global trends in
terms of market revenue, audience development, and
esports and gaming talent; the emerging place of
MENA in the international gaming and esports
ecosystem; and the key challenges both for the
industry and for the MENA region.
EXECUTIVE
SUMMARY

MAIN
FINDINGS

The gaming and esports industry is a fast-
growing segment in terms of global reach,
revenues and audience development. Pandemic-
induced lockdowns prompted a surge in
participation, while improvements in technology
and connectivity have enriched the user
experience and gameplay dynamics. The
demographic profile is evolving to include more
participants from older age groups, and more
women, as the sector becomes more inclusive

By 2027, MENA
digital- gaming
revenue is expected
to almost double
from 2021.

Asia Pacific constitutes the largest
market share and China, the US and Japan
are the largest individual markets. The
Middle East region is raising its profile as
both a consumer and producer/creator hub,
thanks to factors including a young and
digital-savvy population, high levels of digital
connectivity, and government support. By
2027, MENA digital-gaming revenue is
expected to almost double from 2021.

In MENA the UAE, Egypt and Saudi Arabia
are leaders, thanks to high-income levels,
strong digital engagement, and public
investment initiatives and support. There are
productive interlinkages between esports and
high priority sectors like tourism and events
which both governments are developing as
part of economic modernisation programmes.

Key challenges and recommendations
for the industry include improving the global
business environment, raising awareness
and providing education about gaming and
esports, such as: improving visa regimes to
ensure the flow of talent to live events;
professionalising the industry, from referees
and coaches to business development
functions; appropriate regulation of gaming
content and engaging meaningfully with
wider concerns such as addiction and
ensuring online safety and security,
especially of young people.

MARKET
OUTLOOK

Gaming and esports are fast-growing consumer segments,
invigorated by shifts in technology and culture. Improvements in
technology and audio-visual design, and the connectivity boost
brought by cloud computing and 5G networks, have enriched the
user experience to allow more varied game-playing and
collaborative, social gaming networks. New play dimensions have
emerged thanks to trends such as blockchain, which allow players
to earn digital assets like non fungible tokens (NFTs). A new class of
esports celebrities and influencers have grown the audience and
opened new revenue streams like sponsorship.

The demographics of
gaming are evolving with
more engagement from
consumers aged 55-64
(+32%) and grandparents
or those with more than
three children (+18%) and
among women (+14%)
between 2018 and 2020.
Data indicate that growth
in gaming is highest
among historically less
engaged demographics
such as the over 55s.
WHERE ARE GAMERS COMING FROM
% growth
between 2018
and 2020 of
people who have
played at least
one gaming
genre in the
following
audiences

The gaming industry has
surpassed the combined markets
of movies and music with a direct
and indirect value of at least
$300 Billion

• The esports segment is growing fast. By 2025,
there will be over 318 million esports enthusiasts
worldwide; meanwhile, around 322.7 million
people are projected to be occasional viewers of
esports by 2025.
• The two fastest-growing revenue streams of
esports are digital and streaming, with a
compound annual growth rate (CAGR) of +27.2%
and +24.8% respectively in 2020-2025.
• Revenues are predicted to reach almost $1.8
billion by 2023 and total esports viewership is
expected to reach 646 million by the same year.

• The ten most valuable esports companies were
worth a combined $3.5 billion in 2022, up 46%
from December 2020.
• Today’s gaming sector is intersecting with other
consumer industries like music and fashion as
leading brands collaborate with game publishers,
esports organisations and gaming content
creators.
• The rise of the metaverse will increase the
number of touchpoints between brands of all
stripes and gaming.

GLOBAL
LANDSCAPE AND
GAMING HUBS

The global gaming market was valued at
$198.4 billion in 2021, and is expected to reach
$339.95 billion by 2027, registering a CAGR of
8.94% over 2022-202720. Asia Pacific
constitutes the largest market share and
China, Japan, and the United States are the
largest gaming markets. China and the US
alone accounted for around half of global
gaming and esports revenues in 2021.

WHERE ARE
GAMERS COMING
FROM
China United
States
Japan South
Korea
Germany United
Kingdom
France Canada Italy Brazil
Revenue
($Billions)
Players
(Millions)
Revenue
Players
Source: Newzoo

CAGR
of 8.94%
The demographics
of gaming are evolving
with more
$339.95
Billion
Global gaming market
value expected by
2027
1.7
Billion
Estimated mobile
gamers worldwide,
making mobile devices
the most popular
gaming platform
$26
Billion
AR and VR gaming
2026 market estimate,
which would drive a
new era in gaming

• UNITED STATES. In 2022 US gaming revenue was
$54.9 billion with over half of the population (54.2%)
estimated to be digital gamers. Video game revenue
is projected to reach $87.8 billion in 2023, reaching a
$115.6 billion market by 202725. The most popular
format is mobile, with 48.3% of the population.
• CHINA. China accounts for 24.8% of the global
gaming revenue with projections of $105.9 billion in
the video games segment in 2023, with the number of
gamers expected to reach 844.6 million by 2027.
GLOBAL
GAMING
HUBS

• JAPAN. Japan is the third largest market in gaming. In
2023, revenue generated by the video games sector is
projected to reach $71.8 billion, projected to reach
$93.6 billion by 2027, accounting for 82.6 million users.
• OTHER HUBS. Other leading countries in terms of
estimated gaming revenue in 2022 are South Korea
($7.9 billion), Germany ($6.6 billion), United Kingdom
($5.5 billion), France ($4.1 billion), Canada ($3.4
billion), Italy ($3 billion) and Brazil ($2.6 billion)36. But
populous, less wealthy countries have room for growth.
Turkey will be the fastest-growing video games market
between 2021 and 2026 followed by Pakistan (21.9%)
and India (18.3%) and MENA is playing an increasingly
important role in the industry.
GLOBAL
GAMING
HUBS

• CLOUD. In the coming years, gaming and
esports will be enhanced by the advancement
of the cloud which could unleash ‘gaming as a
service’ as increased processing power,
storage and graphics, hosted on remote
servers, offers an enhanced gaming
experience, allowing it to become more
immersive. The advancement of AR/VR will
take more games into the metaverse through
which players incorporate real-life friends into
the virtual world.
THE
CLOUD AND
BLOCKCHAIN

• BLOCKCHAIN. Blockchain promises to have a
significant impact on the industry, notwithstanding the
challenges in the cryptocurrency industry of late, by
opening up new revenue and value models as
publishers work out the monetisation opportunities of
the technology. Crypto and blockchain specifically could
add value to the gaming industry depending on how the
industry reconstitutes following the recent crisis. In-
game microtransactions are an important revenue
stream for publishers, which could make crypto assets
an appealing revenue stream. And the underlying
enabler of blockchain offers multiple value streams
beyond cryptocurrencies.
THE
CLOUD AND
BLOCKCHAIN

ESPORTS
AND GAMING
INDUSTRY

Consumer spending on games console
hardware, games and games services reached
a record high in 2021 at $60 billion. The
console market was set to generate $81 billion
in 2022 with $59 billion from software sales
such as subscriptions and in-app payments;
revenue per player is higher in consoles than
other formats, averaging $92 per person,
which is more than triple that of PC gamers
($23 per gamer) and mobile gamers ($50 per
gamer). The console market is dominated by
Sony, Nintendo and Microsoft.
CONSOLE GAMING

CONSOLE GAMING
25%
Microsoft
29%
Nintendo
46%
Sony
• Despite the console segment’s revenue dynamics, like
other hardware industries, consolemakers have faced
supply chain challenges due to factors including the global
shortage of microchips.
• Revenue strategies going forward will focus increasingly
on software, including more downloadable content, annual
release of games, more free-to-play games with in-app
purchases and greater integration with mobile gaming.
• Cross-play gaming, which allows gamers on different
platforms and consoles to play together online in
multiplayer mode, is a growing trend to enable social and
collaborative gaming without requiring the purchase of
multiple devices.
CONSOLE MARKET
SHARE
Source: Ampere

Mobile devices including smartphones,
tablets and other portable appliances are the
most popular platform for gaming and
esports, with an estimated 1.7 billion mobile
gamers worldwide. Mobile gaming is growing
in momentum in terms of user numbers and
revenue. The average spending on mobile
games and the average revenue generated
per user on mobile gaming is much higher
than that on other platforms.
MOBILE GAMING

MOBILE GAMING
• Mobile games have become more sophisticated as
hardware has improved. The industry surged with the
advent of Apple’s App Store in 2008, fuelling a $100 billion
industry that accounts for half of gaming industry
revenues.
• Highly successful mobile games have transitioned to
desktops and consumers increasingly play mobile-first
titles across platforms, including console and PCs.
• However, consumers’ expenses in mobile gaming dropped
5% in 2022 to $110 billion, its first dip ever since 2019,
even though the number of downloads increased to nearly
90 billion in 2022.

AR and VR headsets could drive a new era in gaming
and provide the hardware foundation for the metaverse.
The AR and VR gaming market could reach $26 billion by
2026. Meta, formerly Facebook, has been a sector leader
thanks to its Oculus headsets which, while still a niche
consumer gadget compared to Playstation and Switch,
has seen steady growth in unit sales and the company
has invested significantly in its metaverse strategy since
changing its brand identity, essentially betting its future on
the metaverse being a shift in the techno-cultural
landscape on par with the dawn of social media
AUGMENTED REALITY
(AR) & VIRTUAL REALITY
(VR) GAMING

AUGMENTED REALITY
(VR) GAMING
UNIT SALES PER CALENDAR YEAR Occulus
Playstation
Switch
Source: Wall Street Journal

AUGMENTED REALITY
(VR) GAMING
Worldwide spending on VR rose 36.5% in 2021 to $2.6
billion and is projected to increase at a 24.1% a CAGR
between 2021 and 2026 to $7.6 billion, while the global
active installed base of stand-alone and tethered VR
headsets is projected to grow from 21.6 million in 2021 to
65.9 million in 2026. Apple is expected to bring a mixed
reality headset to market to compete with Meta and Sony,
another leader. It will include high-resolution displays, a new
version of iOS dubbed xrOS, more powerful processors,
external cameras and a sleek design.

AUGMENTED REALITY
(VR) GAMING
WORLDWIDE VR HEADSET FORECAST, 2022 Q1
Source: IDC
Screenless viewer
Tethered HMD
Standalone HMD
ASP

Cloud gaming is an emerging
infrastructure that relies on remote
servers in data centres, eliminating the
need for users to download and install
games on a PC, mobile or console.
Streaming services use a reliable
internet connection to transmit gaming
information to an app or browser
installed on the gamer’s device. While
the game is rendered and played on
the remote server, the user interacts
locally on their device.
CLOUD GAMING

• Cloud gaming is not a competitor to consoles. In fact, it has
helped them diversify revenue streams, as evidenced by the
fact that cloud industry leader Microsoft is a major player in
console gaming via Xbox and Sony also provides cloud
gaming. Google, Amazon and Netflix have all intimated
greater interest in cloud gaming.
• Microtransactions and subscriptions are among the revenue
sources for the sector. Going forward, wider adoption of high
speed 5G internet is expected to boost the cloud gaming
sector by nearly one third from 2021 to 2024, according to the
UAE Ministry of Economy.
• The cloud gaming market has been forecast to grow from $1
billion to $12 billion between 2020 and 2026 leading some to
suggest the future of gaming and the cloud are inextricably
linked. However, cloud gaming may not be an applicable
solution to esports because internet and streaming latency
can have a material impact in highly competitive esports.
CLOUD GAMING

Blockchain gaming, also known as GameFi, integrates
distributed ledger technology, typically cryptocurrency
tokens or NFTs which players can buy and sell via in-
game currencies74. Blockchain provides the
infrastructure to allow players to earn NFTs and
cryptocurrencies which can become the property of the
gamer and, in some cases, exchanged for stablecoins
that can be sold or traded and converted into fiat
currency. With blockchain increasingly incorporated
into gaming, there is more incentives for gamers
because they could earn money while they play.
BLOCKCHAIN
GAMING

BLOCKCHAIN
GAMING
• Although the crypto market faced challenges after the
collapse of FTX in 2022, the blockchain gaming sector was
proven to be strong. Gaming is still the major force for the
decentralised application (dapp) industry, comprising nearly
50% of on-chain activities.
• The number of unique active wallets (UAWs) in blockchain
gaming has increased 60%, making the average daily
number of UAW on average to reach 1.15 million;
transactions of on-chain games reached 7.4 billion which
makes it a 37% growth from 2021 and a staggering 3,260%
since 2020.
• Blockchain gaming’s future will depend heavily on the real-
world adoption of the metaverse, web3 and cryptocurrencies.

The increasing prevalence of VR goggles
is leading to an increase in “off screen”
gaming, independent of screens. Wearable
devices such as smartwatches and activity
tracking wristbands can also be integrated
into both VR and traditional games, by
tracking user movements
IMMERSIVE GAMING

GAMING
IN MENA

The Middle East and North Africa (MENA)
is one of the most exciting up-and-coming
global gaming markets as both a consumer and
a producer/creator hub. By 2027, MENA digital
gaming revenue is expected to almost double
from its 2021 level to almost $6 billion. Other
estimates expect the region to have the most
substantial increase in the global gaming
market by 2027. An estimated $392 million was
reportedly invested into MENA gaming between
2015 and 2021 across 170 deals.
GAMING
IN MENA

MENA’s top three gaming markets are Saudi
Arabia, the UAE, and Egypt. The so-called ‘MENA-
3’ achieved collective revenue of $1.76 billion in
2021, forecast to reach $3.14 billion in 2025 at a
CAGR of 13.8%. The MENA-3 counted 65.3 million
gamers in 2021, expected to rise to 85.8 million in
2025. Leading brands including Ubisoft, Minecraft,
and Fortnite consider young people in the region to
be among their most engaged fans92. MENA
gamers constitute 15% of the global total.
GAMING
IN MENA
TOP 3 MENA
GAMING MARKETS

GAMING
IN MENA
TOP 3 MENA
GAMING MARKETS
• Lockdown drove a surge in engagement with MENA gamers spending
24% more time playing in 2020 than 2019, compared with an 11% global
average increase.
• This catalysed 8.1% CAGR video game revenue growth between 2019
and 2024, outpacing the global 6.4% growth, to reach $4.1bn.
• Online and downloaded games account for most of the revenue and are
expected to increase market share from 83% in 2019 to 91% in 2024.
• Mobile and tablet games constitute 58% of the market with console
games at 20% and traditional PC at 3%. Shooter and sports are popular
genres with Fortnite, FIFA, Overwatch and Rocket League the most
popular-selling games.

GAMING
IN MENA
THE MENA-3 GAMES MARKET
Source: Niko
MENA-3: Saudi Arabia, United Arab Emirates
Game Revenue: Domestic spending on video games across all platforms (Mobile, PC, Console)
including both legitimate sales and grey market imports

ESPORTS
IN MENA
• Esports are expected to grow strongly in the region thanks to
young demographics, local events, local talent, engagement
from broadcasters and sponsors and government support.
• Esports revenue is expected to grow by 23.3% CAGR
between 2019 and 2024 in MENA, driven by media rights,
sponsorship, and digital advertising.
• The FIFA World Cup in Qatar and regional engagement, as
both event host and foreign investor in global sporting
brands and institutions, is expected to catalyse growth in
esports and sports-related gaming.

• The UAE is building its own gaming ecosystem. The country
has the highest expected revenue per user in esports in the
region and the highest number of adult gamers globally, with
91% of residents gaming at least occasionally. The UAE
gaming market was valued at $400 million in 2021 with 73%
of its 10 million population active gamers and 41% spending
money on games.
• Saudi Arabia is eyeing a leading position. The Kingdom has
hosted prize competitions, including a leg of the 2021 Global
Esports Tour, and the Digital Games Conference. The
country’s sovereign wealth fund has launched a holding
company, the Savvy Games Group, which has already
invested $1.5 billion acquiring two tournament organisers
and reportedly plans to spend $37.8 billion in gaming.
ESPORTS
IN MENA

WHERE VIDEO GAMES
ARE POPULAR AMONG ADULTS
United
States
Indonesia India UK Finland
Occasional Gamers
Frequent Gamers
Smart Phone Users
Source: Statista
United Arab
Emirates
Nigeria China Spain Japan
1,000 - 7,600
online adults
(18-64 y/o)
surveyed Apr-21
to Mar-22

• As a high-income country, the UAE has the highest
gaming expenditure per capita in the region and a
weekly average of 14 hours per user spent playing
games. It was also the 5th largest market globally for
gaming influencers.
• High spending makes the UAE an appealing market
for the industry. In 2020, a majority of paying gamers
(91%) spent money on in-game items or virtual
goods within the six months; the average gamer in
the country spends $115 per year.
UAE MARKET

• The UAE’s regionally strong business
environment and infrastructure, and status as a
gateway to the Middle East and Asia Pacific
regions, are other draws.
• International investors are showing increased
interest in gaming companies of different sizes
and maturity levels in the region, supported by
ecosystems such as the DMCC Gaming Centre
which backs local businesses and provides a
platform to attract international attention.
UAE MARKET

The UAE sector is significantly driven by government-
led initiatives. The gaming industry is a priority sector
in the UAE’s 10-year National Strategy for the Cultural
and Creative Industries, and Saudi Arabia and the
UAE have introduced policies to encourage game
localisation, local game development, new studios
and offices of international game companies, and
esports hosting. In the UAE, the regulatory
environment supports gaming companies on issues
from code of conduct to IPS and visa standards.
GOVERNMENT
SUPPORT
IN UAE

GOVERNMENT
SUPPORT
IN UAE
• The DMCC Gaming Centre, based in Dubai’s thriving business
district, JLT, is a leading gaming ecosystem which supports
collaboration, education, content development, gaming events
and employment in the gaming industry.
• It will host esports events and tournaments and offers
accelerators and market entry programmes to developers through
AstroLabs, a regional accelerator.
• Member companies can also enjoy comprehensive support and
free zone services from DMCC including licensing activities in
gaming and esports as well as advanced infrastructure such as
access to DMCC Crypto Centre and a wide range of educational
events and seminars.
DUBAI

GOVERNMENT
SUPPORT
IN UAE
• DMCC has partnered with Brinc, a venture capital firm, to provide
members with $150 million funding through their accelerator
programmes ZK Advancer and The Sandbox Metaverse.
• These programmes are open to members of the DMCC Gaming
Centre to develop games on blockchain and web3 technologies,
with the Sandbox Metaverse Accelerator Programme aiming to
mentor and invest in start-ups in metaverse gaming. With the
DMCC Crypto Centre housing over 550 crypto, blockchain and
web3 companies, gaming companies can access the latest
technology and bring blockchain gaming to the next level.
DUBAI

GOVERNMENT
SUPPORT
IN UAE
• The Abu Dhabi Gaming Initiative (AD Gaming) is a significant
government-led effort to turn the emirate into a global hub by
focusing on education in-game development and esports,
providing career opportunities and creating world-class content.
• Mubadala Investment Company and AD Gaming have signed an
MoU to build a gaming and esports ecosystem in Abu Dhabi and
the UAE, creating a framework for collaboration, content
development, events and employment.
• In 2020, twofour54 and AD Gaming forged a partnership with
Unity Technologies to set up the Centre of Excellence at the AD
Gaming Hub, one that aims to provide training and support to
students, professionals and small businesses.
ABU DHABI AND WIDER UAE

GOVERNMENT
SUPPORT
IN UAE
• Regional esports leaders like Power League Gaming and Nasr
Esports are also based in the Emirates and the UAE hosted the
first MENA Games for Change Summit on Abu Yas Island and will
hold the Global Esports Federation (GEF)’s Global Esports
Games in 2025137.
• The Blast Premier World Final 2022 held in Abu Dhabi in
December 2022 saw eight teams compete in the Etihad Arena for
a prize of $1,000,000138, while the Dubai Esports Festival in
2022 included $2,000,000 in prize money for the PUBG Global
Championship139. The proposed Dubai X-Stadium would be the
first esports-dedicated venue in the Middle East.
ABU DHABI AND WIDER UAE

Global games devised by international developers dominate gaming in the GCC
region. The top mobile games played in the GCC today, for example, are PUBG
Mobile, Intikam Al Salatin, Fortnite, and Rise of Kingdoms. However, the demand for
localised content remains strong and unfulfilled, according to analysts148. Brands
have invested in localised content for the Arab world for over two decades, with
Sony’s 2004 Arabic gaming title This is Football in 2004, and its Arabian Dota League
esports tournament. More recently global gaming companies are adapting their games
to appeal to the region’s consumers149. Ubisoft’s Assassin’s Creed Origins transports
players to Egypt, where they can view landmarks and tour Egypt’s history, while EA
Sports’ F1 22 features Abu Dhabi’s Yas Marina Circuit150. Abu Dhabi based Falafel
Games produces games specifically for Arabic speakers151, while ESTAZ hosts
tournaments for Arabic speaking players152. The localisation of games can be
achieved through AR/VR gaming technologies as a driving force for tourism, according
to El Mir. “As tourism is a big ambition now, some touristic destinations could be used
as maps in the games [of AR/ VR setting].”
LOCALISATION

CHALLENGES
AND THE ROAD
AHEAD

CHALLENGES
AND THE ROAD
AHEAD
Despite its growing popularity and market
potential, as a fast-growing industry, the
gaming and esports sector faces unique
challenges and growing pains.
Professionalising the sector, strengthening
business competencies in start-ups and gamer
organisations, and designing the right
regulatory and governance framework, are
critical to support the industry’s development

CHALLENGES
AND THE ROAD
AHEAD
• Professionalisation is a priority area. Turning gaming and
esports into a well-developed commercial business requires
an integrated approach to skills, education, certification and
governance.
• At the player level, training, performance science and player
care are critical as elite performers can be subject to the
punishing mental and physical health toll of often intensive
scheduling.
• Competition integrity is a second professionalisation priority
to crack down on cheating and unethical conduct.

CHALLENGES
AND THE ROAD
AHEAD
• Education pathways are emerging to bring greater legitimacy
to the sector. To thrive, esports and gaming needs
professional training and pathways for all of the functions,
including coaches and referees.
• Professionalisation is a key consideration for MENA’s
homegrown industry. While the region boasts abundant raw
talent it needs more structure, via agencies, management
and advisory functions.
• As revenues and financial opportunities grow, there will be
market consolidation, bringing further commercial acumen
and structure.

INDUSTRY RECOMMENDATIONS
• Improve public perception of the industry and of gaming and esports as safe to engage in, and as viable
career pathways for young people, and tackle stigma.
• Diversify revenue from sponsorship to new direct-to-fan monetisation models including digital merchandising,
loyalty programmes and training/learning platforms for amateur gamers.
• Develop appropriate regulatory safeguards to ensure privacy, security and safety online in the gaming
digital ecosystem.
• Professionalise the talent pool, including referees, coaches and business development functions.
• Explore fruitful intersections between gaming/esports with consumer industries like music, fashion, film
and music.
• Develop a pro-business environment for the industry, including smoother visa systems to allow esports
professionals and audiences to attend live events.
• Develop NFTs, digital assets and tokens responsibly, allowing new layers of game-play and
commercialisation without compromising financial security or enabling scams or frauds.

About DMCC
Dubai is perfectly positioned at the centre of the world of trade, connecting East with West and North to South. DMCC is at the heart of Dubai
with a mandate to develop a world class commodities hub through continued innovation. DMCC is Made for Trade.

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