The Middle East is not usually the first spot that comes to mind when European tourists are looking for a vacation that offers a variety of digital entertainment.

However, backed by billions in state investment and a slew of strategic initiatives, several countries are leveraging technology to their advantage.

Gaming has become a key sector in the Middle East as nations strive to diversify their economies away from their reliance on energy revenues.

A Royal Passion Becomes a National Mission

Saudi Arabia has become a major player in the Middle Eastern gaming scene with a project that has gone from a royal passion to a national mission.

Crown Prince Mohammed bin Salman, who is reportedly an avid gamer himself, is personally overseeing efforts through the nation’s ambitious Vision 2030 initiative.

The blueprint was set out to diversify the economy and reduce the nation’s reliance on oil. Gaming is at the heart of that plan.

Saudi Arabia is sparing no expense to bring that dream into reality. Through the Savvy Games Group, Saudi Arabia has set aside $38 billion to transform the Kingdom into a global gaming hub. 

Aside from building arcades and sponsoring tournaments, Saudi Arabia wants to acquire key assets.

Savvy made headlines in 2023 when it forked out $4.9bn to acquire Scopely, one of the biggest mobile game publishers in the world. 

Two years down the line, it has proven to be a value-for-money investment with Scopely on the brink of acquiring Niantic’s games division in a deal worth $3.5bn.

Just like that, Saudi Arabia holds the keys to two of the most successful mobile games of all time – Monopoly GO and Pokemon GO. 

That is a massive statement that speaks volumes about the Kingdom’s ambitions and the influence they have in the global gaming sector.

iGaming in the Middle East – The Untapped Goldmine

Console, PC and mobile gaming are central to the Middle East’s primary purpose of tightening its grip on the gaming world. The associated iGaming industry also presents an opportunity for further growth. 

The region has been reluctant to tap into the vast wealth of the iGaming industry due to strict regulations in many conservative nations, especially those with Islamic legal frameworks.

But there are signs that the tides may be shifting. Over the past couple of years, some nations have revised their conservative outlook on gambling and now see it for the untapped goldmine that it is.

This could be a major game-changer for any other nations willing to follow in their footsteps. Kuwait immediately stands out as a country ripe for iGaming expansion.

With one of the highest per capita incomes in the world and a tech-savvy population, embracing iGaming would massively increase the nation’s scope for growth.

However, that will not happen unless it breaks free from its regulatory shackles. Several online casinos in Kuwait already operate, but they are regulated by authorities in overseas jurisdictions.

If Kuwait liberalises even a fraction of its laws around iGaming, it could spark a gold rush of investors who prefer to conduct business in a more regulatory-friendly environment.

Gaming is the Next Big Thing in the Middle East

Some Middle East nations are building a lucrative gaming ecosystem designed to be irresistible to global talent and companies.

For example, Saudi Arabia is offering a 30-year corporate and withholding tax holiday for approved gaming headquarters. That’s enough to turn the heads of any publishers or developers.

Prince Faisal bin Bandar bin Sultan Al-Saud has visited global gaming powerhouses such as Japan looking to snap up top talents and studios to set up regional offices.

The broader goal is to turn Saudi Arabia into the Silicon Valley of the Middle East – but for gaming.

The UAE has a Vision 2030 of its own – the Digital Economy Strategy 2031, which is centred around growing its digital entertainment and gaming sectors.

Both nations are leading the charge to embrace gaming and it is only a matter of time before others in the region jump on the bandwagon.