The gaming industry in the MENA region is predicted to grow three-fold in just two years to hit the $5 billion mark by 2025, from an estimated $1.8 billion currently.
The surge is drawing more intentional players – both publishers and development companies – into the region, besides prompting businesses across several sectors to adopt gamification to acquire and retain customers, an industry expert said.
Significantly, women are playing an increasingly significant role in the gaming industry in the region, with their numbers seen rising faster than men.
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“The surging popularity of esports in MENA, especially the gaming segment, has led the corporate sector to explore a crossover between technological capabilities and gaming trends, as businesses seek new ways to connect with consumers,” Mario Pérez, chief executive officer of MENATech, part of the leading industry player GGTech Entertainment, told Arabian Business.
“With interactivity and immersion being the latest trend and rage, this trend [of gamification] is catching up across sectors including education, healthcare and construction, besides functions such as advertising and marketing,” Pérez said.
He said the onslaught of mobile gaming and gamification has led to a global market forecast of $314.4 billion by 2027.
Industry insiders said advancements in technology have expanded the gaming experience, with industries incorporating augmented reality (AR), virtual reality (VR) and mixed reality (MR) with esports technology.
This has helped the industry to spread its influence to the corporate sector, as they encourage participation, engagement and loyalty in employee training and team building programmes.
Pérez said from B2B to B2C, gamification is seen as an effective way to increase engagement among employees and customers alike.
“Gamification involves using game mechanics and experience design to motivate and engage people in achieving their goals. When done correctly, gamification apps can increase user engagement, and drive customer acquisition and retention,” Pérez said.
MENA gaming and esports industry
Pérez said the esports sector in the MENA region is currently experiencing tremendous growth – among the quickest in the world, attracting more and more video game development companies to set up shops, besides major global publishers like RIOT Games and Ubisoft to expand their operations in the region.
“Predictions indicate that this region will have the most substantial increase in the gaming market globally by 2027. The number of players in the three largest markets – Saudi Arabia, the UAE, and Egypt – is predicted to hit 86 million by 2025,” he said.
The MENA region already has an estimated 377 million players, which is nearly the same as Europe’s 386 million and significantly higher than America’s 210 million.
“The increasing mobility of people is driving the growth of mobile gaming, as the number of smartphone users in the MENA region is expected to reach 565 million by 2025, a 200 million increase from the current figure,” Pérez said.
A rise in the under-25 population, higher spending by current gamers, longer gameplay, a surge in advertising revenue possibly fuelled by the pandemic, and the spread of different virtual environments like the metaverse are cited as the other major driving factors for the surge in the region.
As per Newzoo, the gaming market is expected to surpass $200 billion globally by 2023 end.
Government push
Industry insiders said they are seeing a huge push from the government to build a strong gaming and esports atmosphere in this region, along with private initiatives, creating a mixed environment that provides a wide variety of possibilities for consumers.
The Saudi Esports Federation last year launched the Saudi Esports Academy, as well as numerous competitions and events, while Abu Dhabi introduced ‘Abu Dhabi Gaming’ last year to champion the development of regional talent.
DMCC also recently announced the launch of the DMCC Gaming Centre during the first-ever Dubai Esports Festival last November.
“These developments encourage gaming firms to set up shop and develop the industry further,” Pérez said.
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