Dubai is rapidly becoming a global centre for the development of next-generation Web3 games, with major industry players like Playnance using new technologies to create and launch products aimed at making Web3 games appealing to the general public, thus bringing GameFi into the mainstream.
Recent initiatives are designed to overcome the limitations of the crypto environment, aiming to make the Web3 gaming experience as smooth and seamless as traditional gaming, thereby eliminating the typical difficulties associated with blockchain products.
The distinctive and innovative environment emerging in Dubai, and extending to the MENA region, has attracted significant interest from venture capitalists towards Web3 projects.
UAE-based game development startup Param Labs and Saudi Arabia’s first Web3 RPG game, Astra Nova, have already secured substantial funding, with discussions ongoing for several other investment deals.
“The figures [of game players and gaming market revenues] demonstrate that Dubai is now one of the prime locations to develop a Web3 game, and Playnance is proud to be part of this movement,” Yaniv Baruch, COO of Playnance, told Arabian Business.
“Given the developer- and crypto-friendly conditions in Dubai and its vibrant community, the interest of global venture capitalists in the MENA region will only increase,” he added.
Dubai’s Strategic Role in Driving the Growth of the UAE’s GameFi Market
The Crypto Oasis Ecosystem Report indicates that around 40 percent of Web3 games in the UAE are currently in development and are expected to launch within the next 12-18 months.
The number of gamers in the region is forecasted to reach 88 million by 2026, up from an estimated 67 million in 2022, contributing to over $7B in total gaming market revenue in MENA for that year.
At this growth rate, the GameFi market in the UAE alone is expected to reach $1B by 2025.
Dubai is leading the cryptocurrency push in the MENA region. Baruch noted that the growth in both the UAE and the region’s markets has created unique conditions for the development of GameFi, which sits at the intersection of these areas.
“Dubai is a global crypto hub and is encouraging other cities in the region to follow suit. This global attention is what enables MENA-based games to thrive,” he said, adding that a well-made product designed for an international audience also appeals to players from this region.
“Players in MENA, like anywhere else in the world, enjoy good gameplay and a smooth user experience. These are crucial elements to focus on for building a strong community,” said the senior executive of Playnance, a blockchain ecosystem that integrates the traditional web2 iGaming experience with the trustless world of Web3 GameFi, and which has its regional office in Dubai.
Baruch stated that today’s technological advancements in Web3 allow game developers to overcome the limitations of the crypto environment, making blockchain gaming as seamless as traditional gaming.
“By freeing users from the need to set up a wallet, transfer crypto from an exchange, confirm numerous transactions, and pay gas fees, you can win over gamers worldwide,” he said.
Baruch highlighted that account abstraction (AA) is one of the technological advancements expected to have the most significant impact on the future of Web3 gaming in the MENA region and globally.
Technological Advancements and Venture Capital Fueling GameFi Growth in MENA
“Instead of maintaining a non-custodial wallet, players can use accounts that do not require private key and seed phrase management. Access to these accounts can be easily restored,” he said.
Games empowered by AA remove the need to sign multiple transactions as seen in first-generation GameFi products.
Another solution is layer-3 infrastructure, which allows developers to run their games on a dedicated blockchain.
“This makes transaction fees so minimal that some projects can cover gas costs for users, making games entirely free from fees,” Baruch said.
“These advancements will make Web3 games suitable for a mass audience and will help GameFi become mainstream,” he added.
Venture capital interest is driving a regional GameFi boom. Recent weeks have seen announcements from some of the world’s leading companies about their entry into the UAE and the wider region, rolling out ambitious projects that industry insiders believe could significantly transform the local Web3 and gaming landscape.
Baruch identified the significant attention from venture capitalists towards Web3 projects as a key factor contributing to the growth of GameFi in the region.
For example, Astra Nova, Saudi Arabia’s first Web3 RPG game targeting gamers in MENA and Asia, recently secured $1M in investments.
Animoca Brands, a game software and venture capital company from Hong Kong, is expanding into the UAE. The firm is investing in Param Labs, a gaming infrastructure startup based in the UAE, in one of the largest recent deals, he noted.
“The number of such investment deals will surely continue to grow,” Baruch said, pointing out that this is taking place in a unique, innovative environment featuring rapid digital transformation, a vibrant community with a strong entrepreneurial spirit, and authorities that are responsive to the industry’s needs.
