UAE gaming watchdog to boost Dubai real estate market, say experts

The announcement also revealed that globally respected regulator Kevin Mullally has been appointed as CEO.

However, experts told Arabian Business that this could show a boost for the Dubai real estate market.

“The immediate benefits include job creation and tourism influx,” Paul Kelly, Operation Director at Allsopp & Allsopp Real Estate said, adding that these jobs will be created not only in the gaming industry but hospitality, transportation and even local retail sectors.

Kelly further compared the potential of UAE becoming a commercial gaming hub to the likes of “Las Vegas or Macau,” as such centres can be “powerful economic drivers.”

“These cities have successfully established themselves as international gaming hubs, attracting millions of visitors and generating billions in revenue. Dubai, already a well-established tourism and business centre, could find itself climbing new economic ladders with this venture,” Kelly added.

UAE can be a global leader in the gaming space

Speaking to Arabian Business, Jamie Ryder, Partner in the Entertainment & Media Industry Group, Reed Smith called the debut of the watchdog “the clearest statement of intent from the UAE government to expand its world leading entertainment and hospitality industry and to begin a foray into the world of commercial gaming.”

As the UAE’s tourism sector thrives in the wake of a post-pandemic resurgence, the potential to expand its offerings into a highly lucrative but largely untapped industry becomes evident on a global scale, Ryder explained, quoting previous reports which have indicated that the UAE market can generate an annual gaming revenue of approximately $6.6 billion.

“Given the abundance of existing and complementary infrastructure and the UAE’s track record of success in swiftly delivering on a vision it sets its sights on, it would not be a surprise to see the UAE become a global leader in the space in the years and decades to come,” Ryder said.

Proceeding with caution

According to Kelly, holiday homes and short-term rentals close to gaming areas could become prime real estate.

The allure of luxury, excitement, and entertainment could make such properties especially appealing to investors looking for high returns, he said.

“Considering the already burgeoning holiday home market in the UAE, the addition of this new business segment can only serve to bolster this further, providing owners more lucrative returns and control over their properties which is very much desired in an ‘owner’s market,'” he said.

Kelly explained that the “ripple effect” extends to the real estate sector, which is closely linked with the overall economic well-being.

As new employment prospects and an influx of tourists emerge, there is an expected surge in the demand for both residential and commercial properties.

However, investors must “proceed with caution and consider the wider implications,” Kelly warned, stating that short-term leases and holiday homes “may not be ideal for long-term residential living due to possible issues like increased traffic and noise levels.

Operating under strict guidelines in the UAE

The GCGRA aims to establish a gaming environment characterised by social responsibility and effective regulation.

This will include the execution of the stringent guidelines and uphold the highest standards, overseeing regulatory actions, national licensing, and responsible harnessing of the economic benefits of commercial gaming.

Ryder added that the development of a socially responsible gaming environment will be “interesting to see how the framework will sit alongside existing laws which broadly prohibit gambling and gaming.”

“Legal and regulatory issues aside, the move to enter the gaming space, opens up a wealth of previously unavailable economic opportunities for the UAE and further enhances the UAE as a destination for international business and travellers,” he said.