What makes Saudi Arabia the GCC gaming industry’s hotspot

A recent study suggests the video-gaming market in Saudi Arabia will expand rapidly and become the largest in the GCC bloc. (Supplied)
Short Url
Updated 12 August 2020
Follow

What makes Saudi Arabia the GCC gaming industry’s hotspot

  • Study suggests video-gaming market in Kingdom will expand rapidly and become the largest in the GCC bloc
  • Global gaming industry is a $129-billion-a-year business with about 2.5 billion gamers worldwide

DUBAI: Recent research shows that video gaming can unlock massive business potential for telecom operators in the GCC bloc’s rapidly growing gaming market. And Saudi Arabia is well placed to become a leader in the field as its gaming community looks to gain recognition internationally.

At the global level, gaming championships are becoming as important as any competitive sports events. Amid global coronavirus restrictions, online gaming has helped millions of people stuck at home maintain and build relations.

On a regional level, a new study by Strategy& Middle East, part of the PwC network, suggests that the gaming market in Saudi Arabia will expand rapidly and become the largest among the GCC countries.

Industry observers consider the phenomenon remarkable given the UAE’s leading position in the GCC gaming market as of 2018 and eSports’ relatively recent emergence in Saudi Arabia, spurred on no doubt by the social changes being ushered in by the Vision 2030 reform plan.

The Strategy& Middle East report, titled “Skin in the Game,” showed the GCC gaming market to be undergoing expansion at such a rapid pace that it could be worth $821 million by 2021 - up from $693 million in 2017.

The research covered Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE, countries where new consoles released by Sony, Nintendo and Microsoft are snapped up by young men and women who find gaming to be a highly competitive and enjoyable hobby.

“Globally, the gaming industry has grown faster than anyone could have ever imagined,” said Hicham Fadel, a partner with Strategy& Middle East. “It is now a $129 billion-a-year business with an estimated 2.5 billion gamers worldwide.

“In terms of revenue, that is larger than annual worldwide box office, annual music streaming and album sales, and the combined annual take of the top five wealthiest sports leagues.”

In the GCC, the gaming market had expanded rapidly, according to Fadel, but like elsewhere in the world the mobile segment dominated the market when it came to revenue and penetration.

“There is clear growth in eSports events, competitions and investments in the GCC. New venues such as Challenge Arena and Clix gaming lounge in Saudi Arabia and the planned Dubai X-Stadium in the UAE, have sprouted and established several competitions to date, suggesting an increase in popularity,” he added.

The developments are happening as local eSports players are producing world-class results. In 2018, FIFA player Mosaad Al-Dossary, known online as “Msdossary,” became the first Saudi national to win the FIFA eWorld Cup, an event for which more than 20 million gamers attempted to qualify.

A year later, gamers in the Kingdom were thrilled when the country was chosen to host the region’s largest global gaming tournament, PlayerUnknown’s Battlegrounds (PUBG) Mobile Star Challenge World Cup.

FASTFACTS

VIDEO GAMES IN NUMBERS

* $821 million - Projected value of GCC gaming market in 2021

* $129 billion - Annual value of business globally

* 2.5 billion - Estimated global population of video gamers

* 14 - Median number of hours every week spent playing video games in the UAE

Meanwhile, in the UAE the median number of hours spent playing video games each week has reached 14, according to the study.

Fadel said: “Similar to global growth trends, the gaming market in the GCC has been growing at a significant pace. The growth is fueled by the region’s young demographic, with half of the population under 25.

“Additionally, factors such as high social media engagement, significant video streaming activity, access to latest technologies and access to high-quality infrastructure enable the growth of the gaming market.”

Fadel noted that credit should also be given to governmental and non-governmental associations such as SAFEIS (the Saudi Arabian Federation for Electronic and Intellectual Sports, which was established in the Kingdom in 2017) that were set up to support the growth of gaming.

Kevin Sebastian, a technology and gaming editor in Dubai, said: “Gaming is now a mainstream culture. More people, mainly kids, are watching major gaming sporting tournaments than the Super Bowl.

“While most parents aren’t aware of video games, there’s no mistaking that they are aware what Fortnite is because their kids play it.”

According to Sebastian, movies and TV shows were being produced based on video-games characters because people who played such games as children constituted today the audience for a new entertainment stream.

“With the Middle East being a new market, the region is very switched on when it comes to entertainment adoption,” he told Arab News. “Many brands, including the likes of Intel, Microsoft and Sony PlayStation, are focusing on the Saudi market because of the Kingdom’s efforts to open up on the cultural front.”

Pointing out that Saudi-based video gamers were now coming to the forefront in international tournaments, Sebastian said it was only natural they cultivated that player base.

“You have big game publishers like Ubisoft Middle East, Bandai Namco, Blizzard and many others that are localizing their content for an Arab audience and are putting Arab content creators first.

“Mobile gaming is currently the biggest industry because of the sheer accessibility; anyone can be a gamer,” he added.

Hani Suwwan, business development manager (Middle East and North Africa) at HyperX, said the projections about the gaming market were significant, as the GCC telecommunications industry had seen a drop in voice-related revenue.

A growing gaming market would mean more data being consumed – and offer an opportunity for telecommunications companies to diversify their portfolio.

“Key factors in accelerating the GCC gaming industry’s growth would be the launch of the PlayStation 5 and the new Xbox later this year,” he added. “Upcoming game titles and gaming competitions are key moments to look out for, too.

“There is currently a huge gap in local content, which presents an untapped opportunity for global brands to adapt their content for this market and spearhead localized content.”

Suwwan noted that the Dubai Free Zones Council’s recent announcement of a plan to set up a dedicated gaming free zone underscored the industry’s potential for rapid growth.

--------

READ MORE: Game on - The rise of eSports in the Middle East

--------

“Saudi Arabia is also investing heavily in gaming as it aims to become the gaming capital of the region,” he said.

Going forward, the roll-out of a state-of-the-art infrastructure in fiber and 5G from telecom operators is expected to guarantee high-speed experience and low latency – a vital factor for gamers, which will further attract them and eSports activities, such as competition hosting.

“The market will witness significantly larger investments in video gaming and eSports,” Fadel said.

“In video gaming, investment opportunities will lie in content creation, especially in localizing content, as well as in-game purchases, game hosting and gaming-payment solutions.”

Investment and venture opportunities will lie in eSports teams and players, leagues and competitions hosting, advertising and sponsorship, and in streaming services.




 A growing gaming market would mean more data being consumed – and offer an opportunity for telecommunications companies to diversify their portfolio. (Photo: Shutterstock)

“This will lead to a growth in startups and job opportunities across the gaming sector,” Fadel added. “Why not imagine a gaming or eSports future where teams compete for and trade players for significant amounts of money, and where startups in the region develop hit games than can rival the likes of (video game developers) EA Sports and Riot Games?”

Fadel’s gaming vision is not a certain future, but it is a possible one.

Sebastian expects Saudi Arabia to host large international tournaments going forward in view of the “obvious” untapped potential of the Virtual Reality (VR) market.

“As a gamer who was born and raised in the Middle East, it’s a great source of pride and joy to see where gaming has come in the region,” he said. “From a time, we had to get game CDs in magazines, the Middle East is now getting dedicated servers, store fronts and eSports-based gaming cafes.

“So, it’s fair to say gaming is going to keep growing with every generation.”

With most of the world forced to maintain social distancing, the inherently borderless nature of video games is giving new meaning to the term “socializing.”

-------------------

@CalineMalek


Saudi Minister of State for Foreign Affairs attends Pope Leo XIV’s inaugural mass

Minister of State for Foreign Affairs Adel Al-Jubeir heads Saudi delegation at inauguration ceremony of Pope Leo XIV.
Updated 18 May 2025
Follow

Saudi Minister of State for Foreign Affairs attends Pope Leo XIV’s inaugural mass

  • The pope began his inauguration mass on Sunday, marking the official start of his papacy
  • He arrived in St Peter’s Square in the white Popemobile, waving to the crowds

RIYADH: Minister of State for Foreign Affairs and Climate Affairs Envoy Adel Al-Jubeir headed Saudi Arabia’s delegation participating in the inauguration ceremony of Pope Leo XIV, Saudi Press Agency reported on Sunday.

The pope began his inauguration mass on Sunday, marking the official start of his papacy. He arrived in St Peter’s Square in the white Popemobile, waving to the crowds.

The Kingdom’s ambassador to Italy Prince Faisal bin Sattam bin Abdulaziz also attended the mass.


Plan smarter to ‘unlock future prosperity,’ Saudi housing minister says

Updated 18 May 2025
Follow

Plan smarter to ‘unlock future prosperity,’ Saudi housing minister says

  • Project management leaders gather in Riyadh to discuss best practices in alignment with Vision 2030
  • More than 133,000 entities in the Kingdom working on range of construction projects

RIYADH: Project management is “one of the most important drivers of national trust,” Saudi Minister of Municipalities and Housing Majid bin Abdullah Al-Hogail told a conference in Riyadh on Sunday.

Saudi Vision 2030 was created to paint a prosperous future that will reinvent the economic, social, and developmental reality of the Kingdom, Al-Hogail added.

Project management plays a pivotal role at the governmental level by improving the execution and quality control of numerous projects, in full alignment with national goals and targets, he said.

The fourth Global Project Management Forum, with Arab News as a media partner, began its first day of discussions with more than 120 speakers.

The event brings together experts for workshops and dialogue on the best practices in the industry, aligning with Saudi Arabia’s rapid development under Vision 2030.

“Today, we are witnessing accelerating changes and rising challenges … at the heart of (the solutions) is project management to reshape our spaces, meet the needs of the people, and enhance overall sustainability,” said Al-Hogail.

“At the housing and municipality sector, we design projects to meet the dreams of households.”

According to the minister, more than 133,000 entities in the Kingdom are working on a wide range of construction projects.

“This kind of momentum cannot be achieved without project management, which starts with the people and their focus on the conscious planning, flexibility in execution, and ability to adapt to new changes.”

Project management has become smarter, he said, with a strong ability to predict and plan sustainably, and with the potential to help build a strong nation with a diversified economy.

The two-day forum will feature 50 strategic and technical sessions, and include more than 40 exhibitors. A total of 60 agreements will be signed to develop partnerships between entities.


Saudi deputy minister receives Russia, Ukraine envoys

Updated 18 May 2025
Follow

Saudi deputy minister receives Russia, Ukraine envoys

Saudi Deputy Minister for International Multilateral Affairs Abdulrahman Al-Rassi received Ambassador of Russia to the Kingdom Sergey Kozlov in Riyadh on Sunday.

In a separate meeting, Al-Rassi received Ambassador of Ukraine to the Kingdom Anatolii Petrenko, the Foreign Ministry wrote in a post on X.

During the meetings, all sides discussed bilateral relations as well as prominent developments in regional and international arenas.


Riyadh event highlights the role of Saudi museums in the age of social change

Updated 18 May 2025
Follow

Riyadh event highlights the role of Saudi museums in the age of social change

  • Cultural objectives of Saudi Arabia’s Vision 2030 in focus at three-day event

RIYADH: In recognition of International Museum Day, the National Museum of Riyadh hosted, a cultural event under the theme: “The future of museums in rapidly changing societies.”

The event, organized by the Saudi Ministry of Culture’s Museums Commission, ran from May 15 to 17 and highlighted the role of museums in social change, innovation and youth engagement.

The program included workshops, debates, performances and interactive activities, all aligned with the cultural goals of Vision 2030.

A special session took place with Princess Haifa bint Mansour bin Bandar, president of the Saudi National Committee of the International Council of Museums.

During this open discussion, Princess Haifa emphasized the importance of considering the specific situation of museums depending on their location and level of development. While some institutions demonstrate real dynamism, others are struggling to keep up.

“The efforts to modernize and renovate certain museums are clear. However, other museums face challenges in trying to catch up,” she said.

She stressed the need to revise the legislative framework and encourage private investment to support growth in the sector:

“Our museum system is currently being reviewed, and legislation is needed that encourages investment. Supporting the creation of museums in smaller buildings helps to facilitate funding.”

Regarding the frequent criticisms of so-called “traditional” museums, she offered a more nuanced view.

“There are traditional museums that are changing and remain popular, which proves they still serve the public. Sometimes, traditional museums fail to attract the public, even more so than innovative museums.”

She also referred to the significant transformations underway in the Kingdom, supported by a government body dedicated to the museum sector.

“We are in the midst of a radical transformation with a body entirely dedicated to museums, that supports positive change and offers opportunities for progress.”

As the longstanding head of the Saudi ICOM committee, Princess Haifa reminded the audience that Saudi Arabia is actively involved in international dialogue and decision-making:

“This year, we participated in the revision of a code of ethics established in previous years to recognize what constitutes a museum. We are currently translating certain museological references into Arabic.”

Human resources were another key focus of her speech. She identified several obstacles, especially language barriers and the lack of specialized training.

“The first challenge is the language factor. Frankly, we must acknowledge these issues, particularly the importance of the English language,

“We absolutely need specialized schools, partnerships with universities, training opportunities in our field, and specializations such as museum management and exhibition security.”

Despite the challenges, she expressed optimism, welcoming ongoing partnerships with Saudi universities — particularly in the Eastern Province — and the creation of new professional qualifications.

“This is a diploma that is about to become a master’s degree. Museums are not merely storage spaces; they were designed to be places of restoration and rehabilitation. Today, they have become vital centers offering programs for all segments of society.”

In the context of cultural and social transformation, the ongoing reflection on the role of museums in Saudi society reflects a clear ambition: to transform museums into vibrant, inclusive and forward-looking institutions.

Reporting to the Ministry of Culture, the Saudi Museums Commission is a public body whose mission is to develop, modernize, and supervise museums throughout the Kingdom, whether public or private.

It supports the creation of new museums, promotes heritage, encourages innovation — particularly in the digital space — and fosters cultural education.


Weqaa runs experiments to improve Hajj health measures

National Center for the Prevention and Control of Plant Pests and Animal Diseases perform experiments at holy sites near Makkah
Updated 18 May 2025
Follow

Weqaa runs experiments to improve Hajj health measures

  • The first experiment focused on the detection of desert locusts in Muzdalifah
  • The second experiment focused on studying the possibility of an outbreak of an animal epidemic during the sacrifice of livestock in Hajj

RIYADH: The National Center for the Prevention and Control of Plant Pests and Animal Diseases, Weqaa, performed two experiments at holy sites near Makkah before the start of Hajj season this year.

The first experiment focused on the detection of desert locusts in Muzdalifah, where a group of experts conducted surveillance, control and evaluation of locust populations.

The second experiment focused on studying the possibility of an outbreak of an animal epidemic during the sacrifice of livestock in Hajj.

This involved a team from Weqaa, in collaboration with other agencies, activating an emergency response plan and carrying out investigations and containment measures.

Ghalib Al-Saedi, director of Weqaa in the Makkah region, said that the experiments were carried out to enhance field readiness, improve response efficiency and assess interagency coordination, the Saudi Press Agency reported.

Hajj draws millions of pilgrims to Makkah every year, increasing health risks and requiring high-quality public health services to prevent disease outbreaks, manage emergencies and ensure the safety of pilgrims.

The experiments were conducted in partnership with organizations in the Makkah region, including the Makkah branch of the Saudi Ministry of Environment, Water and Agriculture, the Ministry of Health, and the Royal Commission for Makkah City and Holy Sites.