Mobile connectivity has been instrumental during the COVID-19 period. It emerged as a lifeline for societies worldwide. It enabled many social and economic activities to continue. For businesses with brands relevant to gaming, the industry has presented many opportunities for significant growth.
In particular, the Middle East & North Africa (MENA) region has recently seen unprecedented efforts to enhance and support the local gaming industry. Countries across the region are steadily becoming some of the best markets to invest in. This is due to the rapidly growing and high-demand market for modern games. Whether they are for PC, consoles, or mobile phones.
The Middle East Sees Huge Revenue Growth for Gaming
Below are the top 10 MENA countries that have yielded the most profit (million dollars in revenue) from gaming, as of January 2021.
- Saudi Arabia
- Iran
- UAE
- Egypt
- Morocco
- Algeria
- Iraq
- Lebanon
- Qatar
- Kuwait
Source: Statista
Gaming revenues have skyrocketed, but it varies heavily from country to country and market to market. Saudi Arabia has taken the lead with over USD 680 million, followed by Iran with USD 431 million. Other countries like Egypt, Morocco, and Algeria recorded at least USD 100 million for their respective markets.
These numbers are noteworthy to observe for many MENA countries that have not been typically seen as being technologically advanced. So, what has caused this revenue growth?
Smartphone Adoption and Increase in Internet Penetration
The increasing penetration of smartphones and the attractiveness of mobile gaming are seen as the key factors driving the market growth.
In a YouGov whitepaper on gaming and esports, a global survey which included 3,500 people from Egypt, Iraq, Saudi Arabia, and the UAE, found that the majority of gamers in the MENA region play on their smartphones or tablets:
- Egypt (58%)
- UAE (57%)
- Saudi Arabia (52%)
- Iraq (51%)
Source: GSMA
In a panel discussion about telecommunications, technology, and the gaming ecosystem in the Middle East, several panelists discussed the evolving gaming landscape. They called for both the private and public sectors to create an environment that pushes for increased value.
- Yousef Buhazza, founder and vice-chairman of Unreal Bahrain/Bahrain Internet Society, commented on the need for greater investments in the telecoms sector. He said it is the young generation that makes up the gaming segment and that they “will always look for better services to enjoy those games” that require a lot of data and bandwidth.
- Malek Hammoud, chief investment and digital officer at Kuwaiti telecoms provider Zain Group, pointed out that latency-based issues present a real challenge to overcome, explaining that more gaming servers need to be based in the MENA region.
- Ricardo Rodrigues, head of business development Americas at Telstra Broadcast Services, said that the implementation of 5G technology will resolve many of these issues and improve the gaming experience for users across the continent.
As the number of gamers continues to rise across the MENA region, businesses will aim to meet their expectations. It’s inevitable that governments will need to invest more in better Internet infrastructure to support this trend for their citizens.
Esports Engagement is Growing in the Middle East
Another surprising development is the growing popularity of esports in the Middle East. Despite the ongoing pandemic, we continue to see strong demand for esports content, including online events and professional leagues.
According to ResearchAndMarkets.com, there have been several developments that have contributed to the growth of the esports scene:
- Activision has partnered with the Saudi Telecom Company to introduce dedicated servers – hosted in Riyadh and Jeddah – for Call of Duty in the region.
- Riot Games, the company behind hugely popular games like League of Legends, established Middle East servers for their game, Valorant, in October 2020.
- Zain Group – which has 50 million customers across MENA – launched a new esports brand, Zain Esports, with the aim of holding a series of regional online esports tournaments.
- South Korean-based International Esports Federation (IESF) signed a Memorandum of Understanding (MoU) with the UAE’s Motivate Media Group, as part of their plans to expand esports in the Middle East.
In certain MENA markets, awareness and engagement levels of leading video streaming platforms are notable. They cater to watching video game live streams and esports tournaments.
Source: YouGov
With many people worldwide still stuck at home, gaming has become a significant way to spend leisure time. It is also an alternative means of virtual socializing. We anticipate increased activity in the esports landscape. More institutions recognize esports as a meaningful opportunity to engage a young, enthusiastic community.
Take Your Services to the Next Level
Today, gaming and esports is a multi-million-dollar industry with its own sponsors, leagues, and competitors. Driven by active demographics and gaming’s influence on youth culture, the industry’s growing presence in the digital economy cannot be ignored.
Businesses that want to tap into the growing momentum of gaming and sell their goods and services to this young, digitally-savvy audience will need Digital Service Delivery Platform, Direct Carrier Billing, and Digital Voucher Platform.
That’s why Forest Interactive has established branch offices in Morocco, UAE, and Nigeria. Contact us today and let us help you tap into this opportunity.
Check out our free playbook – The Potential of Mobile Gaming: Revenue Opportunities for Mobile Operators in Africa
