Gaming is an Economic Game-Changer for the UAE

The United Arab Emirates (UAE) entered the gaming scene with plans to become a major force, and its dreams are quickly coming to fruition.

The Middle Eastern nation took a recreational activity and identified it as a key economic lever, led by a government with foresight and spurred by its tech-savvy, young population.

With international competitions, eSports festivals, developer-friendly initiatives and more, the UAE has harnessed gaming to drive its economy forward.

Gaming’s Rising Economic Footprint

Almost three-quarters of UAE citizens now identify as gamers, which is one of the highest gaming penetration rates in the world.

The UAE gaming industry earned over $1 billion in revenue in 2023, a notable increase from $400 million two years earlier. 

Younger people in the UAE are passionate about gaming, including mobile, console, PC and virtual reality (VR). This sector has become a key pillar of the UAE’s digital economy. 

The mobile gaming segment has grown into a behemoth. It reportedly raked in over $173.6m last year, while PC gaming posted similar numbers. 

The UAE’s healthy population of tech enthusiasts, high-income households and world-class digital infrastructure makes it the ideal market for players and creators.

Government-Assisted Acceleration

The UAE government has played a crucial role in enabling gaming growth by creating a supportive environment for stakeholders. 

Dubai established the Dubai Program for Gaming 2033 (DPG33) two years ago, aiming to make the UAE a top ten recognised gaming hub in the world by 2033. Its objectives include creating 30,000 jobs and contributing $1bn to the UAE’s gross domestic product (GDP). 

Initiatives of this nature align with the country’s goal of ending its reliance on energy revenue. The UAE plans to evolve into a modern, knowledge-based and innovation-based economy.

The UAE also established the DMCC Gaming Centre in 2022, an environment where developers, publishers and eSports organisations drive the industry forward.

This DMCC centre grants specialised licenses, and its infrastructure invites various industries to work hand in hand, further bolstering the gaming ecosystem.

Meanwhile, the UAE has to hosted showpiece events such as the Dubai eSports and Games Festival, which have reinforced the nation’s status as a centre for gaming excellence.

The iGaming Opportunity

The UAE has formed the General Commercial Gaming Regulatory Authority (GCGRA) to establish an airtight regulatory environment for gambling.

They will oversee commercial gaming and all forms of gambling, ensuring that operators and players act responsibly. 

Until now, online casinos in the UAE have operated under license from authorities in other jurisdictions, as the Gulf nation has traditionally frowned on gambling and online platforms have yet to be approved.

However, with the UAE issuing licences and setting world-class compliance standards, it has paved the way for a regulated iGaming industry in its borders in the near future.

Doors will now open for considerable foreign investment from international and local operators eager to establish roots in the Middle East. They will create jobs and generate income for the UAE economy.

Gambling will also boost tourism. The Wynn Al Marjan Island resort, poised to open its gates in 2027, will attract visitors from around the globe as the UAE bids to tap into the entertainment industry.

Talent, Technology and Infrastructure

The government has launched a visa and licensing initiative that includes a 10-year Golden Visa for creatives and technologists, encouraging professionals with outstanding expertise to move to the UAE.

More than 280 gaming companies were operating in Dubai alone last year, with around 260 of them focusing on game development. 

Intriguingly, more than 60 gaming start-ups have opened for business in the UAE since it launched DPG33, and 12 percent of them are respected gaming juggernauts.

Dubai Internet City and TwoFour54 are free zones which have office spaces and other infrastructure suitable for technology and gaming companies.

Cloud gaming, VR technologies and artificial intelligence (AI) have taken root in the UAE. The infrastructure is there, and the innovation labs set up by the government are massive draws.

More international gaming outfits will make the UAE their Middle Eastern headquarters over the next few years. The region is also crying out for multi-national eSports leagues and teams.

Local content creators also have a central role in curating content that resonates with Arabs and is exported to the rest of the world.