TRENDING
Dr Alexander Schudey , Managing Director and
Partner , BCG
This explains why the region has demonstrated a longterm commitment to the gaming sector , with Saudi Arabia recently announcing its gaming and esports strategy , and the UAE creating two gaming centres to attract global companies .
The Middle East is a key player in the global gaming industry , with an impressive penetration rate and a strong commitment from governments to invest in the sector . The region ' s focus on gaming and the establishment of dedicated gaming hubs makes it an attractive destination for global gaming companies .
Innovative advancements in game engines , motion tracking , and other technologies have seamlessly integrated with the metaverse , enhancing its capabilities , and pushing the boundaries of what is achievable .
The young and digitally savvy population , particularly in Saudi Arabia , where 70 % of the population is below the age of 30 , combined with higher disposable incomes and a preference for indoor activities due to the hot weather , further contribute to the region ' s thriving gaming ecosystem .
A strong indication of Middle East populations towards gaming is the strong growth of game streaming at 24.5 % CAGR , which is on path to reach approximately 200 million users in 2025 , according to Boston Consulting Group ' s latest gaming report . The region ' s growth is three times faster compared to China , the current leader , at a compound annual growth rate , CAGR of 24.5 % versus 7.6 %.
The Middle East ' s gaming market is diverse , with both casual and core gamers contributing to its growth . The region ' s focus on mobile gaming and the continued popularity of console and PC games demonstrate its adaptability and potential for further expansion .
The significant government commitment , such as Saudi Arabia ' s $ 38 billion investment in gaming companies and Abu Dhabi ' s attractive incentives for gaming businesses , highlights the region ' s dedication to fostering a thriving gaming industry . Furthermore , the potential for gaming and esports to enhance the tourism sector in the UAE and Saudi Arabia presents a unique opportunity to market these experiences to a global audience ."
Regional gaming industry highlights
• The region ’ s growth is three times faster compared to China , the current leader , at a compound annual growth rate , CAGR of 24.5 % versus 7.6 %.
• Over $ 3 billion was invested in the industry by Saudi Arabia ’ s Public Investment Fund , PIF in 2022 , as part of a much larger $ 38 billion commitment by PIF .
• Digitally savvy population , combined with higher disposable incomes , preference for indoor activities , contribute to the region ’ s thriving gaming ecosystem .
• The Middle East ’ s gaming market is diverse , with both casual and core gamers contributing to its growth .
• The region ’ s focus on mobile gaming and the continued popularity of console and PC games demonstrate its potential for further expansion .
• Gen Z is the first generation to play as much as watch videos , leading gaming to surpass other forms of entertainment in numbers and time spent in the future .
• In the gaming market , innovation takes a unique path compared to other media segments , with consumer communities playing a significant role in driving change .
• Over 650 gaming M & A or investment deals were announced or closed in the first half of 2022 , with top players controlling more than 70 % of the market .
• Gaming , as a pioneer in this field , laid the foundations for the metaverse long before its widespread adoption .
• Innovative advancements in game engines , motion tracking , and other technologies have seamlessly integrated with the metaverse , enhancing its capabilities , and pushing the boundaries of what is achievable .
BCG ' s gaming report identifies four major trends that will have the largest impact on the industry ' s future :
1 . Audience growth , demographic shifts
Gaming industry growth is broadening demographically . Gen Y , who grew up playing video games , is entering their 30s with average gamer age at 31 . However , children and youth still drive audience growth . Gen Z is the first generation to play as much as watch videos , leading gaming to surpass other forms of entertainment in numbers and time spent in the future .
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