The GCC Wants to Become The Heart of Esports and Gaming
Esports in the GCC are becoming a meaningful channel for cultural representation and economic advancement.
Where pixels meet passion, esports and gaming have transformed entertainment into a global phenomenon. They are also impacting adjacent industries like e-commerce and education.
Esports, the realm of organized competitive video gaming where teams and individual players compete online, has grown hand-in-hand with gaming, although industry numbers vary widely. According to a PwC report on the entertainment and media outlook for 2023-2027, the global esports market was worth an estimated $1.38 billion in 2022 and is expected to reach $2.89 billion by 2025. Statista, on the other hand, projects that the global esports market will generate $4.3 billion in revenue globally this year.
A recent report by BCG on the gaming sector notes that over 60 percent of the Middle East's population are avid gamers. According to the report, the region is home to one of the highest rates of mobile gaming app downloads in the world.
“Gaming, esports, entertainment, and technology are converging in exciting ways, creating a mutually beneficial ecosystem,” Roman Gurskiy, managing director of gaming VC GEM Capital, which he co-founded with his brother Kirill Gurskiy, says. He tells us that this symbiotic relationship benefits all industries, as gaming gains wider recognition and other industries tap into a passionate and dedicated fan base.
The sector’s growth in the GCC reflects broader regional trends towards digital integration and interactive entertainment. The region has emerged as a dynamic hub for gaming and esports, with UAE and Saudi Arabia at the forefront.
Kirill Gurskiy tells us that supportive government initiatives and substantial investments in gaming are making the MENA region a hub for the global gaming industry.
According to a report by Niko Partners, the esports industry in MENA defied global trends in 2023, with esports-related revenue increasing by nearly 8% to almost $2 billion.
“The esports and gaming industry in the Middle East is witnessing exponential growth, particularly in the UAE and Saudi Arabia,” says Matthew Pickering, CEO of Power League Gaming, a full-service gaming agency in the MENA region. He tells us that with supportive government policies and funds, growing interest in investment, and a young tech-driven population, the GCC is well-positioned to capitalize on the huge potential of esports.
The growth of the industry has also increased gaming events. In July and August 2024, Saudi Arabia hosted the first-ever Esports World Cup, an eight-week-long festival that saw 1,500 gamers converge on the Saudi capital to compete for a $60 million prize pool.
“The quality of gaming events in the UAE and the GCC has significantly improved, driven by increasing competition and higher standards,” Klaus Kajetski, CEO of the UAE-based esports media company and tournament organizer yaLLa Esports, tells Inc. Arabia. He explains that the rise of gaming hubs and regional initiatives to support the growth of the industry has encouraged local players to create events that meet global benchmarks.
Saudi and the UAE Are Becoming Gaming Hubs
Saudi Arabia is quickly becoming one of the forerunners of the gaming industry, and for good reason. According to Statista, Saudi Arabia’s video game market will rake in $1,969 million this year. The country also boasts a significant gaming population, with approximately 23 million gamers, according to a report by Boston Consulting Group (BCG), which represents about 67% of the total population. Critically, it is estimated that 48% of Saudi women are gamers.
Saudi Arabia is also making large investments in the sector as part of Vision 2030. In 2022, PIF-owned Savvy Games Group announced plans to invest $37.8 billion to solidify its presence in the global gaming market through developing, publishing, and acquiring high-quality games. Its private sector is quickly getting on board, with gaming studios like Sandsoft setting up shop at home and abroad to leverage global talent and position itself within the global gaming ecosystem.
Beyond investments in tournaments and software, Saudi is also investing in infrastructure. In December 2023, Qiddiya announced the gaming and esports district, which aims to attract more than 10 million visitors yearly.
“We see more tournaments, events, and gaming hubs emerging, positioning Saudi Arabia as a key player in the global esports landscape,” says Pickering.
Teams like the Falcons Team, founded by Saudi pro gamer Mosaad Al-Dossary, known for their prowess in games such as Rocket League, have also put Saudi on the map of professional gamers.
The UAE has also positioned itself as a regional hub for gaming and esports events. According to Roman Gurskiy, the UAE’s world-class infrastructure and advanced tech landscape add to its appeal as a destination for gaming talents and investments.
Much like Saudi Arabia, Abu Dhabi’s substantial investment in Esports corresponds with Abu Dhabi Vision 2030. The UAE government also supports local talents through the Dubai Esports and Games Festival.
“The UAE’s young, tech-savvy population with high mobile penetration and 30% identifying as gamers creates a dynamic landscape for the gaming industry. This demographic shift combined with the region’s rapid adoption of new technologies provides a fertile ground for gaming and a natural opportunity for brands to leverage this ecosystem,” Pickering says.
“Further fueling this is the UAE’s investment in platforms and initiatives that support skill development for the next generation of gaming professionals, as well as events and expos that attract the gaming community,” Pickering adds.
Abu Dhabi recently announced the development of the world’s first Esports Island which will be worth an estimated $1 billion and will include a luxurious hotel and esports arena. Abu Dhabi is also home to yaLLa Compass Circuit, a top S-tier gaming event tournament hosted by yaLLa Esports, which offers a prize pool of $1.5 million.
The Challenges of Growing Gaming
The Dubai Gaming Program 2033 aims to make Dubai one of the top 10 cities for gaming globally, create 30,000 new jobs, and substantially enhance the sector's contribution to Dubai's digital economy, potentially increasing GDP by around $1 billion.
“The intersection of esports and gaming not only drives the growth of the gaming market but also creates additional opportunities for people interested in pursuing careers in the games industry, whether as developers, artists, esports athletes, or AI engineers,” Roman Gurskiy says.
Kajetski agrees that the industry is creating jobs, noting that, while demand for roles in social media management and marketing in esports globally is high, finding professionals to fill those roles is challenging.
Roman Gurskiy, on the other hand, believes that AI will play an increased role in game development and anticipates the emergence of alternative mobile app stores and a more competitive landscape.
Despite the booming industry, Kirill Gurskiy tells us that gaming startups face a reduced risk appetite of investors within the esports industry that hinders their growth and success. “According to a recent report by InvestGame, venture capital funding continued to decline in the first half of 2024, with Series A rounds reaching a multi-year low. The struggle is real,” he tells us.
This article appeared in the July/August issue of Inc. Arabia's digital magazine. To read the full magazine, click here.