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INSIDER ACCESS: The gaming boom: A transformational shift in the Middle East

07 March 2025
6 minutes
The global gaming industry has witnessed unprecedented growth over recent years, with the Middle East emerging as a significant player in this dynamic sector. As of today, the gaming market in the region is valued at $500 million and is forecasted to double to $1 billion by 2029.
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The-gaming-boom.jpg

This rapid expansion is being fuelled by substantial investments from both governments and private entities. Notably, the UAE has allocated $1 billion toward eSports development, while Saudi Arabia has injected around $38 billion into its gaming industry.

At Capacity Middle East 2025, Saf Malik, senior reporter at Capacity Media, chaired a keynote discussion on the gaming boom, featuring insights from Olga Gordeeva, chief revenue officer at Playhop.

This discussion examined the key takeaways from the panel, including growth drivers, gamer behaviour, network performance, and the evolving relationships between game developers, mobile operators, and smartphone manufacturers.

Speakers

Saf Malik, senior reporter – Capacity Media (moderator)

Olga Gordeeva, chief revenue officer – Playhop

Key drivers of growth in the Middle East gaming market

According to Gordeeva, four primary factors are driving the gaming boom in the region:

  1. Government investments: Significant governmental funding is accelerating infrastructure development, eSports expansion, and gaming innovation. As Gordeeva highlighted: “It’s not a surprise that the Middle East is transforming into a major gaming hub right now. With the UAE allocating $1 billion and Saudi Arabia injecting $38 billion, the sector is poised for remarkable growth.”
  2. Diverse content and monetisation strategies: The expansion of competitive gaming and streaming platforms, along with localised content, is enhancing engagement. “Engagement and monetisation are fuelled by expanding competitive gaming and streaming platforms. Localization is also key in attracting a regional audience,” Gordeeva explained.
  3. High digital engagement and mobile penetration: The Middle East has one of the highest internet penetration rates globally, with mobile data usage being a dominant factor. The increasing participation of younger players and a rising number of female gamers are also contributing to market growth.
  4. A young, high-income population: “The region is young, and there is a high-income population. Governments are investing heavily in digital technology, making the Middle East an important area for this industry,” Gordeeva noted.

Gamer behaviour and usage patterns

Understanding the behaviour and preferences of Middle Eastern gamers is crucial for industry stakeholders. Playhop’s insights reveal three dominant behavioural trends:

  • Mobile-first mindset: Unlike Western markets, where PC and console gaming are dominant, mobile gaming leads in the Middle East. “Over 65% of gamers in the Middle East prefer playing on mobile devices,” said Gordeeva, citing data from PC and games data platform Newzoo.
  • Social gaming culture: Multiplayer and cooperative gaming experiences are highly popular, with players actively engaging in communities. “Games like PUBG, Fortnite, and Free Fire thrive in the region due to their social engagement features,” she added.
  • High spending power: Middle Eastern gamers are more likely to spend on in-game purchases, particularly in free-to-play titles. “Free-to-play games with in-app purchases generate significant revenue in this market,” she emphasised.

The rise of mobile gaming

The increasing sophistication of mobile games has significantly impacted the overall gaming ecosystem. “The gaming industry is evolving rapidly, especially with the recent changes in the global economy. One major trend is the rise of web gaming—people want to play anytime, anywhere,” Gordeeva explained. She noted that Playhop is focused on web gaming due to its accessibility across both mobile and PC platforms.

Technological advancements, including cloud computing, AI, and 5G rollouts, are enhancing mobile gaming experiences. “New technologies are making games better and more accessible, ensuring a seamless experience across different devices,” she added.

Device preferences among gamers

Gordeeva provided further insights into device preferences in the region:

  • Mobile phones: The most popular gaming devices, especially among casual and younger gamers.
  • Tablets: Primarily used by younger audiences and families for casual gaming.
  • Consoles: PlayStation leads the market, followed by Xbox, and is favoured by core gamers.
  • PCs: Preferred by eSports players and hardcore gamers, particularly for competitive games.

Accessibility and network performance

Ensuring accessibility across different devices is a key priority for Playhop. The company is working on several initiatives to optimise the gaming experience:

  • Mobile optimisation: Ensuring seamless gameplay on smartphones, including lower-end devices.
  • Cross-platform support: Enabling integration across mobile and PC.
  • Localisation: Supporting over 70 languages to reach a global audience.
  • Telecom partnerships: Working with telecom providers to improve connectivity and reduce latency.

However, network performance remains an area for improvement. “While we have achieved great strides, inconsistent 5G rollout and network performance issues remain key challenges,” Gordeeva acknowledged.

Strengthening industry partnerships

The gaming ecosystem benefits from strong collaborations between game developers, mobile operators, and smartphone manufacturers. Playhop plays a central role in fostering these relationships by:

  • Providing data-driven insights: Helping developers optimize game performance for different networks and devices.
  • Enhancing distribution channels: Collaborating with mobile operators for direct game distribution and promotions.
  • Supporting monetisation strategies: Enabling in-game purchases through carrier billing and other localised payment channels.

Future opportunities and emerging technologies

Looking ahead, several emerging technologies could shape the future of gaming in the Middle East. “We will all feel the influence of VR and AR technologies. They will make games more immersive and realistic,” Gordeeva predicted. With improved gaming infrastructure and internet speeds, she sees VR and AR becoming mainstream in the region.

Blockchain and NFTs are also gaining traction as potential disruptors. “Blockchain and NFTs could transform how people earn and trade in games. Players could own and sell virtual items, adding a new layer to the gaming economy,” she added. However, she clarified that these technologies do not directly impact Playhop’s current business model.

The Middle East’s gaming industry is undergoing a transformative shift, driven by government investments, technological advancements, and changing user behaviour. The region’s mobile-first mindset, high digital engagement, and increasing monetisation potential make it an attractive market for game developers and industry stakeholders.

Playhop, as one of the largest web gaming platforms, is at the forefront of this evolution. By focusing on accessibility, partnerships, and future innovations, the company is well-positioned to capitalise on the region’s booming gaming sector.

As Gordeeva aptly summarised, “The Middle East’s gaming infrastructure is evolving rapidly, and we are only at the beginning of what is set to be an extraordinary journey for the industry.”