The esports sector in the MENA region is experiencing swift evolution, driven by advancements in digital infrastructure, a tech-savvy youth population, and increasing government support. With global revenues from esports surpassing $1.38 billion in 2022, MENA is emerging as a key player in this market, offering a promising portfolio for investors. As traditional sports face declining engagement with younger generations, esports has risen as a powerful alternative, drawing the attention and wallets of Gen Z and millennials alike.
MENA’s esports industry is projected to grow at a compound annual growth rate (CAGR) of 15.1% through 2024. The region is home to over 377 million gamers, with Saudi Arabia leading in gaming revenue, while the UAE has the highest revenue per user. The growth of esports in the MENA region is driven by its robust digital infrastructure, characterized by widespread mobile internet access and the ongoing rollout of 5G networks. By 2025, investments in digital infrastructure across the region are expected to top $70 billion, setting the stage for the esports sector’s expansion.
Demographically, MENA holds a competitive edge, with over 65% of its population under the age of 35, forming a tech-savvy, young audience that drives the esports scene. Governments have recognized the sector’s potential, offering various supportive initiatives. For example, Dubai has launched the “Programme for Gaming 2033,” which aims to position the city as one of the top 10 esports hubs globally by 2033, creating around 30,000 jobs and adding $1 billion to the local GDP. Abu Dhabi is similarly supporting the industry with its “AD Gaming” initiative, designed to nurture game developers and esports organizations within the emirate.
Faisal Al Nuaimi
General Manager of Ferrari World Abu Dhabi
Investment Opportunities:
The esports market in MENA offers investors a range of opportunities, from team and league ownership to educational programs and esports academies that support local talent. The Ferrari World Esports Arena in Abu Dhabi, which includes 20 Gran Turismo simulators and three F1 simulators, highlights the intersection of luxury brands and esports. This venue reflects the UAE’s growing involvement in competitive gaming while incorporating Ferrari’s sleek aesthetic.
Faisal Al Nuaimi, General Manager of Ferrari World Abu Dhabi, emphasized the significance of the arena as the world’s first Ferrari-themed esports venue, designed to cater to all racing enthusiasts, from beginners to professionals.
The Future Outlook:
The future of esports in MENA looks bright, driven by ongoing government investment, integration into mainstream entertainment and education, and the growth of mobile esports. As MENA continues to develop its esports infrastructure, the region is set to become a global hub for major tournaments and competitions, with the potential to produce localized content that appeals to regional audiences. Investors who act early will have the chance to shape this exciting new chapter in digital entertainment and capitalize on its vast growth potential.