1、1GEARED FOR GROWTH:GAMING AND ESPORTS IN THE MIDDLE EAST AND NORTH AFRICA2TABLE OF CONTENTSExecutive summary 4Market outlook 6Global landscape and gaming hubs 9SPECIAL SECTION:Defining the esports and gaming industry 12Console 12Mobile 14Augmented Reality(AR)&Virtual Reality(VR)15Cloud 17Blockchain

2、18Immersive 193Gaming in Middle East and North Africa(MENA)20 Government support 24 Gaming investments,companies and start-ups in 26 United Arab Emirates(UAE)Challenges and the road ahead 28Industry recommendations 304This publication serves as the first in-depth DMCC(Dubai Multi Commodities Centre)

3、thought leadership report on the global and local gaming and esports ecosystem.It gathers contributions from key opinion leaders to share their views on where the gaming and esports industry is heading and places emphasis on the drivers of gaming and esports from a technology,culture and business pe

4、rspective;global trends in terms of market revenue,audience development,and esports and gaming talent;the emerging place of MENA in the international gaming and esports ecosystem;and the key challenges both for the industry and for the MENA region.EXECUTIVE SUMMARY5The main findings of the report:Th

5、e gaming and esports industry is a fast-growing segment in terms of global reach,revenues and audience development.Pandemic-induced lockdowns prompted a surge in participation,while improvements in technology and connectivity have enriched the user experience and game-play dynamics.The demographic p

6、rofile is evolving to include more participants from older age groups,and more women,as the sector becomes more inclusive.Asia Pacific constitutes the largest market share and China,the US and Japan are the largest individual markets.The Middle East region is raising its profile as both a consumer a

7、nd producer/creator hub,thanks to factors including a young and digital-savvy population,high levels of digital connectivity,and government support.By 2027,MENA digital-gaming revenue is expected to almost double from 2021.Saudi Arabia and the UAE are regional leaders,thanks to high-income levels,st

8、rong digital engagement,and public investment initiatives and support.There are productive interlinkages between esports and high priority sectors like tourism and events which both governments are developing as part of economic modernisation programmes.Key challenges and recommendations for the ind

9、ustry include improving the global business environment,raising awareness and providing education about gaming and esports,such as:improving visa regimes to ensure the flow of talent to live events;professionalising the industry,from referees and coaches to business development functions;appropriate

10、 regulation of gaming content and engaging meaningfully with wider concerns such as addiction and ensuring online safety and security,especially of young people.By 2027,MENA digital-gaming revenue is expected to almost double from 2021.6MARKET OUTLOOKGaming and esports are fast-growing consumer segm

11、ents,invigorated by shifts in technology and culture.Improvements in technology and audio-visual design,and the connectivity boost brought by cloud computing and 5G networks,have enriched the user experience to allow more varied game-playing and collaborative,social gaming networks.New play dimensio

12、ns have emerged thanks to trends such as blockchain,which allow players to earn digital assets like non fungible tokens(NFTs).A new class of esports celebrities and influencers have grown the audience and opened new revenue streams like sponsorship1.Gaming and esportsGaming is defined as an“individu

13、al or group participating in amateur or social video gaming.”2 Esports refers to“a form of sports where the primary aspects of the sport are facilitated by electronic systems;the input of players and teams as well as the output of the eSports system are mediated by human-computer interfaces.”3 The s

14、ector surged during the pandemic as people turned to gaming for entertainment and distraction.“Similar to other entertainment sectors,gaming benefited from COVID,but it was already growing steadily before the pandemic.There has been strong growth momentum,”said Jad El Mir,partner with Strategy&and m

15、ember of the Technology,Media and Telecommunications practice in the Middle East.Increased numbers of streamers,audiences and content were recorded from 2020 to 2021 by streaming platforms Twitch and YouTube Gaming Live,a trend correlated on social media with a 2021 survey finding 9%of internet user

16、s worldwide following gaming influencers4.As opposed to gaming experiences,“streaming is about the whole experience that the influencers provide while playing,”explains El Mir.While the current cost of living crisis may restrict spending such as in-app purchases,purchasing extra lives and other reve

17、nue streams in gaming,the sector could prove defensive as gaming overall proves a cheaper pastime than travel,eating out and cinema5.1 https:/ https:/ 3 https:/doi.org/10.1108/IntR-04-2016-0085 4 https:/ 5 https:/ 7StreamingStreaming a game refers to the act of“broadcasting yourself via the internet

18、 while you play,so that other people can watch you on their computer,phone or games console.”6 The demographics of gaming are evolving with more engagement from consumers aged 55-64(+32%)and grandparents or those with more than three children(+18%)and among women(+14%)between 2018 and 20207.Data ind

19、icate that growth in gaming is highest among historically less engaged demographics such as the over 55s(see chart).Source:GWI8 The esports segment is growing fast.By 2025,there will be over 318 million esports enthusiasts worldwide,a significant increase from 2020 at 215.2 million enthusiasts;meanw

20、hile,around 322.7 million people are projected to be occasional viewers of esports by 20259.The monetisation opportunities of esports are spread across the value chain,including winning game prizes through team creation and management,sponsorship for leagues and tournaments,distribution of content t

21、hrough streaming platforms and advertisements.6 https:/ 7 https:/ 8 https:/ 9 https:/ NEW GAMERS ARE COMING FROM%growth between 2018and 2020 of people whohave played at least onegaming genre in thefollowing audiencesGWI Core Q3-Q4 2018 and Q1-Q4 2020725,561 Internetusers aged 16-6455-64sGrandparents

22、Saudi ArabiaTaiwanFrance/Belgium3+ChildrenWomenMarried+32%+28%+23%+22%+22%+18%+14%+11%8The two fastest-growing revenue streams of esports are digital and streaming,with a compound annual growth rate(CAGR)of+27.2%and+24.8%respectively in 2020-202510.Revenues are predicted to reach almost$1.8 billion

23、by 2023 and total esports viewership is expected to reach 646 million by the same year11.The ten most valuable esports companies were worth a combined$3.5 billion in 2022,up 46%from a ranking in December 202012.Revenue streams include team sponsorship,media rights,licensing and ticketing13.In July 2

24、022,Faze Clan became the first esports and gaming lifestyle brand listed on the Nasdaq14.Todays gaming sector is intersecting with other consumer industries like music and fashion as leading brands collaborate with game publishers,esports organisations and gaming content creators.For instance,Louis

25、Vuitton has launched an exclusive collection in collaboration with the game League of Legends.Gucci launched its gaming academy to mentor and coach up-and-coming talents.Travis Scotts digital performances in Fortnite were attended by more than 27 million guests15.The gaming industry has surpassed th

26、e combined markets of movies and music with a direct and indirect value of at least$300 billion16.“Gaming and esports are definitely on the rise.It is a unique form of entertainment thats combined with storytelling and technology.Theres a reason why people spend so much time gaming,and thats because

27、 it can be so immersive,”says Klaus Kajetski,CEO and Founder of YaLLa Esports,the Dubai-based professional esports organisation.Video streaming platforms are offering indicators of game popularity.The most-followed game on Twitch worldwide was Fortnite,followed by Grand Theft Auto 5(GTAV)17.Gaming i

28、s even intersecting with automotives,evidenced through Nvidias partnerships with the likes of Hyundai and BYD18.Autonomous vehicles,should they emerge as a mainstream segment,will free up huge amounts of consumer time making cars into major new sites of advertising and entertainment.Meanwhile the ri

29、se of the metaverse will increase the number of touchpoints between brands of all stripes and gaming.This market growth is reflected in rising investment.Nearly$90 billion was invested in the gaming industry across 4,783 deals between 2015 and 2021,with 2020 the high watermark for funding of$24.72 b

30、illion across 627 deals19.10 https:/ 11https:/ 12 https:/ 13 https:/ 14 https:/ 15 https:/ https:/ 17 https:/ 18 https:/ https:/www.moec.gov.ae/documents/20121/0/2022_03_25_Gaming+Sector+Heatmap+in+English.pdf/1fe6f504-59f2-6b4f-c368-9a4af7760694?t=1650871445100 The gaming industry has surpassed the

31、 combined markets of movies and music with a direct and indirect value of at least$300 Billion 9GLOBAL LANDSCAPE AND GAMING HUBSGlobal growth dynamicsThe global gaming market was valued at$198.4 billion in 2021,and is expected to reach$339.95 billion by 2027,registering a CAGR of 8.94%over 2022-2027

32、20.Asia Pacific constitutes the largest market share and China,Japan,and the United States are the largest gaming markets21.China and the US alone accounted for around half of global gaming and esports revenues in 2021.Source:Newzoo22.20 https:/www.moec.gov.ae/documents/20121/0/2022_03_25_Gaming+Sec

33、tor+Heatmap+in+English.pdf/1fe6f504-59f2-6b4f-c368-9a4af7760694?t=1650871445100 21 https:/www.moec.gov.ae/documents/20121/0/2022_03_25_Gaming+Sector+Heatmap+in+English.pdf/1fe6f504-59f2-6b4f-c368-9a4af7760694?t=1650871445100 22 https:/ StatesJapanSouth KoreaGermanyUnited KingdomFranceCanadaItalyBraz

34、ilPlayersRevenuePlayers(Millions)0100200300400500600700Revenue($Billions)05101520253035404510In 2022,US gaming revenue was$54.9 billion23 with over half of the population(54.2%)estimated to be digital gamers24.Video game revenue is projected to reach$87.8 billion in 2023,reaching a$115.6 billion mar

35、ket by 202725.The most popular format is mobile,with 48.3%of the population,or 162.9 million people,gaming on mobile devices in 202226.More gamers will play on their mobile devices in the coming years,contrasting with a gradual decline of console and Personal Computer(PC)gamers27.China accounts for

36、24.8%of the global gaming revenue28 with projections of$105.9 billion in the video games segment in 2023,with the number of gamers expected to reach 844.6 million by 202729.Headquartered in Shenzhen,Tencent is one of the driving forces of Chinas gaming market;in 2021,the company generated one third

37、of its revenue through online gaming,and holds controlling stakes of several online and mobile gaming companies in the world30.Although the Chinese government has tightened regulations on gaming31 and stopped approving new games distribution and monetisation between July 2021 and April 2022,the espo

38、rts market remained strong and the government has shown support through,for instance,the development of Shanghais 500,000 square metres esports arena32.Japan is the third largest market in gaming.In 2023,revenue generated by the video games sector is projected to reach$71.8 billion,projected to reac

39、h$93.6 billion by 2027,accounting for 82.6 million users33.The largest gaming platform in Japan,in terms of number of players and generated revenue,is mobile gaming,followed by console and PC gaming34.Esports is a mature sector with a projected revenue of$34.4 million in 2023 and expected to reach$4

40、7.2 million by 202735.23 https:/ https:/ https:/ 26 https:/ https:/ https:/ 29 https:/ 30 https:/ 31 https:/ 32 https:/ 33 https:/ 34 https:/ 35 https:/ BillionGlobal gaming market value expected by 2027 Other leading countries in terms of estimated gaming revenue in 2022 are South Korea($7.9 billio

41、n),Germany($6.6 billion),United Kingdom($5.5 billion),France($4.1 billion),Canada($3.4 billion),Italy($3 billion)and Brazil($2.6 billion)36.But populous,less wealthy countries have room for growth.Turkey will be the fastest-growing video games market between 2021 and 2026 followed by Pakistan(21.9%)

42、and India(18.3%)37 and MENA is playing an increasingly important role in the industry.In the coming years,gaming and esports will be enhanced by the advancement of the cloud which could unleash gaming as a service as increased processing power,storage and graphics,hosted on remote servers,offers an

43、enhanced gaming experience,allowing it to become more immersive.The advancement of AR/VR will take more games into the metaverse through which players incorporate real-life friends into the virtual world38 39.Blockchain promises to have a significant impact on the industry,notwithstanding the challe

44、nges in the cryptocurrency industry of late,by opening up new revenue and value models as publishers work out the monetisation opportunities of the technology.Crypto and blockchain specifically could add value to the gaming industry depending on how the industry reconstitutes following the recent cr

45、isis.In-game microtransactions are an important revenue stream for publishers,which could make crypto assets an appealing revenue stream.And the underlying enabler of blockchain offers multiple value streams beyond cryptocurrencies.Key developments include TSM,a leading esports team,selecting Avalan

46、che as its blockchain partner for building out a competitive gaming platform,called Blitz.TSM plans to host Avalanche-branded tournaments on the Blitz subnet,a subdivision of an IP network,to provide skills development and performance insights.36 https:/ 37 https:/ 38 https:/ 39 https:/www.bcs.org/a

47、rticles-opinion-and-research/what-is-the-future-of-gaming/CAGR of 8.94%The global gaming market expectation in the period 2022-202711ESPORTS AND GAMING INDUSTRYCONSOLE GAMINGConsumer spending on games console hardware,games and games services reached a record high in 2021 at$60 billion40.The console

48、 market was set to generate$81 billion in 2022 with$59 billion from software sales such as subscriptions and in-app payments;revenue per player is higher in consoles than other formats,averaging$92 per person,which is more than triple that of PC gamers($23 per gamer)and mobile gamers($50 per gamer)4

49、1.The console market is dominated by Sony,Nintendo and Microsoft42.Source:Ampere43 40 https:/ https:/ 42 https:/ https:/ the console segments revenue dynamics,like other hardware industries,consolemakers have faced supply chain challenges due to factors including the global shortage of microchips44.

50、Revenue strategies going forward will focus increasingly on software,including more downloadable content,annual release of games,more free-to-play games with in-app purchases and greater integration with mobile gaming45.Cross-play gaming,which allows gamers on different platforms and consoles to pla

51、y together online in multiplayer mode,is a growing trend to enable social and collaborative gaming without requiring the purchase of multiple devices46.An early example of console-mobile integration was Call of Duty which boasts around 200 million active users and 30 million daily active users47.Whi

52、le not new Final Fantasy XI allowed gamers to play together across multiple platforms back in 2002 cross-platform gaming has become easier thanks to cloud computing and closer hardware alignment48.Console gamingA console game is“a type of interactive multimedia software that uses a video game consol

53、e to provide an interactive multimedia experience via a television or other display device.The game console generally consists of a handheld control device(although some use cameras to monitor user movements)and a computer that runs the games software.A console game is also known as a video game.”49

54、 Personal Computer(PC)GamingA PC game is“a video game that is played on a personal computer rather than on a console.The game is controlled using PC input devices such as the keyboard,mouse,joystick,etc.PC games can be played with or without an internet connection,and have been available since the i

55、ntroduction of personal computers.A large number of games are available for the PC platform.”50 44 https:/ 45 https:/ 46 https:/ 47 https:/ 48 https:/ 49 https:/ 50 https:/ 13MOBILE GAMINGMobile devices including smartphones,tablets and other portable appliances are the most popular platform for gam

56、ing and esports,with an estimated 1.7 billion mobile gamers worldwide51.“Mobile gaming is growing in momentum in terms of user numbers and revenue.The average spending on mobile games and the average revenue generated per user on mobile gaming is much higher than that on other platforms,”according t

57、o El Mir.Mobile games were initially low-tech to ensure accessibility but have become more sophisticated as hardware has improved.Like consoles,mobile gaming dates back three decades but the industry surged with the advent of Apples App Store in 2008,fuelling a$100 billion industry that accounts for

58、 half of gaming industry revenues52.Highly successful mobile games including Candy Crush Saga have transitioned to desktops and consumers increasingly play mobile-first titles such as Genshin Impact,Diablo Immortal,and Pokmon Unite across platforms,including console and PCs53.However,consumers expen

59、ses in mobile gaming dropped 5%in 2022 to$110 billion,its first dip ever since 2019,even though the number of downloads increased to nearly 90 billion in 202254.The drop was likely a result of the cost of living crisis and consumers reining in spending,but the industry is expected to regain its grow

60、th momentum in 202455.Mobile gamingMobile gaming means“playing video games on mobile devices like smartphones and tablets.”56 51 https:/ 52 https:/ 53 https:/ 54 https:/www.data.ai/en/go/state-of-mobile-2023/55 https:/ 56 https:/www.verdict.co.uk/what-is-mobile-gaming-and-why-does-it-matter/14AUGMEN

61、TED REALITY(AR)&VIRTUAL REALITY(VR)GAMINGAR and VR headsets could drive a new era in gaming and provide the hardware foundation for the metaverse.The AR and VR gaming market could reach$26 billion by 202657.Meta,formerly Facebook,has been a sector leader thanks to its Oculus headsets which,while sti

62、ll a niche consumer gadget compared to Playstation and Switch,has seen steady growth in unit sales and the company has invested significantly in its metaverse strategy since changing its brand identity,essentially betting its future on the metaverse being a shift in the techno-cultural landscape on

63、par with the dawn of social media.UNIT SALES PER CALENDAR YEAR Source:Wall Street Journal58 The Meta Quest series enables users to play different games and explore experiences via a virtual reality headset.Every three days,a new app is reportedly listed in the Quest app store59.According to Meta,ove

64、r$1.5 billion has been spent on games and apps in the Quest Store and over a third of its 400 Quest titles have grossed more than$1 million in sales,with 33 titles surpassing$10 million in gross revenue.The Walking Dead:Saints&Sinners exceeded$50 57 https:/www.moec.gov.ae/documents/20121/0/2022_03_2

65、5_Gaming+Sector+Heatmap+in+English.pdf/1fe6f504-59f2-6b4f-c368-9a4af7760694?t=1650871445100 58 https:/ 59 https:/ Million21520311276172302468101214161820222426OculusPlaystationSwitch20192020202115million in revenue,and Resident Evil grossed$2 million within its first 24 hours60.According to IDC,Meta

66、 has captured 90%of VR market share in the first quarter of 2022,as their latest gaming device,Quest 2,proves popular.Meta offers exclusive content to players and subsidises its hardware61.More broadly,worldwide spending on VR rose 36.5%in 2021 to$2.6 billion and is projected to increase at a 24.1%a

67、 CAGR between 2021 and 2026 to$7.6 billion,while the global active installed base of stand-alone and tethered VR headsets is projected to grow from 21.6 million in 2021 to 65.9 million in 202662.Apple is expected to bring a mixed reality headset to market to compete with Meta and Sony,another leader

68、.It will include high-resolution displays,a new version of iOS dubbed xrOS,more powerful processors,external cameras and a sleek design63.WORLDWIDE VR HEADSET FORECAST,2022Q1Source:IDC64 AR/VR gamingAR Gaming is“the integration of game visual and audio content with the users environment in real-time

69、.Unlike VR gaming,which often requires a separate room or confined area to create an immersive environment,AR gaming uses the existing environment and creates a playing field within it.While VR games require specialised VR headsets,only some AR systems use them.AR games are typically played on devic

70、es like smartphones,tablets and portable gaming systems.”65 On the other hand,VR gaming is“a new generation of computer games with VR technology that gives players a truly immersive,first-person perspective of game action.Participants both experience and influence the game environment through a vari

71、ety of VR gaming devices and accessories,including VR headsets,sensor-equipped gloves,hand controllers,and more.”66 60 https:/ https:/ 62 https:/ 63 https:/ 64 https:/ 65 https:/ https:/ 202220232024202520260510152025303540Screenless viewerTethered HMDStandalone HMDASP16CLOUD GAMINGCloud gaming is a

72、n emerging infrastructure that relies on remote servers in data centres,eliminating the need for users to download and install games on a PC,mobile or console.Streaming services use a reliable internet connection to transmit gaming information to an app or browser installed on the gamers device.Whil

73、e the game is rendered and played on the remote server,the user interacts locally on their device67.Cloud gaming is not a competitor to consoles.In fact,it has helped them diversify revenue streams,as evidenced by the fact that cloud industry leader Microsoft is a major player in console gaming via

74、Xbox and Sony also provides cloud gaming68.Google,Amazon and Netflix have all intimated greater interest in cloud gaming.Microtransactions and subscriptions are among the revenue sources for the sector.Going forward,wider adoption of high speed 5G internet is expected to boost the cloud gaming secto

75、r by nearly one third from 2021 to 2024,according to the UAE Ministry of Economy69.The cloud gaming market has been forecast to grow from$1 billion to$12 billion between 2020 and 202670 leading some to suggest the future of gaming and the cloud are inextricably linked71.However,cloud gaming may not

76、be an applicable solution to esports because internet and streaming latency can have a material impact in highly competitive esports.Cloud gamingCloud gaming is“a method of playing video games using remote servers in data centres.Theres no need to download and install games on a PC or console.Instea

77、d,streaming services require a reliable internet connection to send gaming information to an app or browser installed on the recipient device.The game is rendered and played on the remote server,but you see and interact with everything locally on your device.”72 67 https:/ https:/ 69 https:/www.moec

78、.gov.ae/documents/20121/0/2022_03_25_Gaming+Sector+Heatmap+in+English.pdf/1fe6f504-59f2-6b4f-c368-9a4af7760694?t=1650871445100 70 https:/ 71 https:/ 72 https:/ GAMING Blockchain gaming,also known as GameFi73,integrates distributed ledger technology,typically cryptocurrency tokens or NFTs which playe

79、rs can buy and sell via in-game currencies74.Blockchain provides the infrastructure to allow players to earn NFTs and cryptocurrencies which can become the property of the gamer and,in some cases,exchanged for stablecoins that can be sold or traded and converted into fiat currency75.With blockchain

80、increasingly incorporated into gaming,there is more incentives for gamers because they could earn money while they play.Although the crypto market faced challenges after the collapse of FTX in 2022,the blockchain gaming sector was proven to be strong.Gaming is still the major force for the decentral

81、ised application(dapp)industry,comprising nearly 50%of on-chain activities76.The number of unique active wallets(UAWs)in blockchain gaming has increased 60%,making the average daily number of UAW on average to reach 1.15 million;transactions of on-chain games reached 7.4 billion which makes it a 37%

82、growth from 2021 and a staggering 3,260%since 202077.Blockchain gamings future will depend heavily on the real-world adoption of the metaverse,web3 and cryptocurrencies.Blockchain gamingBlockchain games,also known as crypto or NFT games,are games that“integrate blockchain technology into their games

83、,typically in the form of having cryptocurrency tokens or NFTs in the game.In most cases,in-game currencies are cryptocurrencies and skins or playable characters are NFTs.Blockchain games typically handover ownership rights of in-game assets over to their players instead of keeping it within the wal

84、led gardens of the game ecosystem.Players are free to sell the in-game currencies and NFTs that they earn by playing the game whereas in traditional games,players are typically not allowed to do real-world trading of in-game assets.”78 73 https:/www.weforum.org/agenda/2022/12/blockchain-gaming-part-

85、one/74 https:/www.nansen.ai/guides/what-is-blockchain-gaming-and-how-can-i-get-started 75 https:/ https:/ 77 https:/ 78 https:/www.nansen.ai/guides/what-is-blockchain-gaming-and-how-can-i-get-started 18IMMERSIVE GAMING The increasing prevalence of VR goggles is leading to an increase in“off screen”g

86、aming,independent of screens.Wearable devices such as smartwatches and activity tracking wristbands can also be integrated into both VR and traditional games,by tracking user movements79.Immersive gaming and extended reality(XR)Immersive games are“video games that transport the player into an altern

87、ative world where techniques are used to make them feel more like the character theyre playing.This is achieved through a combination of good game flow,fully developed storylines,and extreme realism made possible by cutting-edge graphics.”80 Game developers are also using the technologies of extende

88、d reality(XR)to create more immersive,memorable and engaging experiences for gamers.XR technologies(i.e.AR,VR and mixed realities)integrate the real world with virtual elements in order to create interactive gaming experiences,and the gaming industry represents one of the most significant areas that

89、 empower XR technologies81.The growing popularity of immersive gaming is driving the demand for XR talent.The University of Salford in Manchester offers a taught graduate programme in Games and Extended Reality82,while the University of Europe for Applied Sciences is offering an undergraduate progra

90、mme in Game Design and highlighted the growing popularity of immersive technologies for gaming83.79 https:/ https:/ https:/ https:/www.salford.ac.uk/courses/postgraduate/games-and-extended-reality 83 https:/www.ue- 1920GAMING IN MENAThe Middle East and North Africa(MENA)is one of the most exciting u

91、p-and-coming global gaming markets as both a consumer and a producer/creator hub.By 2027,MENA digital gaming revenue is expected to almost double from its 2021 level to almost$6 billion.Other estimates expect the region to have the most substantial increase in the global gaming market by 202784 85 8

92、6 87.An estimated$392 million was reportedly invested into MENA gaming between 2015 and 2021 across 170 deals88.MENAs top three gaming markets are Saudi Arabia,the UAE,and Egypt89.The so-called MENA-3(see graphic)achieved collective revenue of$1.76 billion in 2021,forecast to reach$3.14 billion in 2

93、025 at a CAGR of 13.8%90.The MENA-3 counted 65.3 million gamers in 2021,expected to rise to 85.8 million in 202591.Leading brands including Ubisoft,Minecraft,and Fortnite consider young people in the region to be among their most engaged fans92.MENA gamers constitute 15%of the global total93.84 http

94、s:/ https:/www.moec.gov.ae/documents/20121/0/2022_03_25_Gaming+Sector+Heatmap+in+English.pdf/1fe6f504-59f2-6b4f-c368-9a4af7760694?t=1650871445100 86 https:/ 87 https:/ 88 https:/www.moec.gov.ae/documents/20121/0/2022_03_25_Gaming+Sector+Heatmap+in+English.pdf/1fe6f504-59f2-6b4f-c368-9a4af7760694?t=1

95、650871445100 89 https:/ 90 https:/ https:/ https:/ 93 https:/www.moec.gov.ae/documents/20121/0/2022_03_25_Gaming+Sector+Heatmap+in+English.pdf/1fe6f504-59f2-6b4f-c368-9a4af7760694?t=1650871445100 21Source:Niko94Lockdown drove a surge in engagement with MENA gamers spending 24%more time playing in 20

96、20 than 2019,compared with an 11%global average increase.This catalysed 8.1%CAGR video game revenue growth between 2019 and 2024,outpacing the global 6.4%growth,to reach$4.1bn.Online and downloaded games account for most of the revenue and are expected to increase market share from 83%in 2019 to 91%

97、in 202495.Mobile and tablet games constitute 58%of the market with console games at 20%and traditional PC at 3%.Shooter and sports are popular genres with Fortnite,FIFA,Overwatch and Rocket League the most popular-selling games96.Esports are expected to grow strongly in the region thanks to young de

98、mographics,local events,local talent,engagement from broadcasters and sponsors and government support97.Esports revenue is expected to grow by 23.3%CAGR between 2019 and 2024 in MENA,driven by media rights,sponsorship,and digital advertising98.The FIFA World Cup in Qatar and regional engagement,as b

99、oth event host and foreign investor in global sporting brands and institutions,is expected to catalyse growth in esports and sports-related gaming.One example is FIFA 2023,which features the World Cup in Qatar,and allows gamers to compete virtually on the football pitch while professional gamers can

100、 even take part in the FIFA 23 Global Series99.Before the World Cup,FIFA unveiled a series of web3 games including AI League:FIFA World Cup Qatar 2022 Edition,and FIFA World Cup Qatar 2022 on Phygtl100.94 https:/ https:/ 96 https:/www.moec.gov.ae/documents/20121/0/2022_03_25_Gaming+Sector+Heatmap+in

101、+English.pdf/1fe6f504-59f2-6b4f-c368-9a4af7760694?t=1650871445100 97 https:/ 98 https:/ 99 https:/ 100 https:/ Saudi Arabia61%United Arab Emirates30%Egypt10%Saudi Arabia61%United Arab Emirates30%Egypt10%SAUDIA ARABIAMENA-3 MARKETSMOBILE,PC&CONSOLE GAMERSMENA-3:Saudi Arabia,United Arab EmiratesGame R

102、evenue:Domestic spending on video games across all platforms(Mobile,PC,Console)including both legitimate sales and grey market importsGAMES REVENUE2021 REVENUE65.32M85.76M202120251.76B3.14B2021 GAMERSTHE MENA-3 GAMES MARKETUNITED ARAB EMIRATESEGYPT2021202522Saudi Arabia is eyeing a leading position

103、on the global esports stage.The Kingdom has hosted prize competitions,including a leg of the 2021 Global Esports Tour,and the Digital Games Conference,a regional industry event attended by about 500 gaming-related companies.Saudi gamers have notched global plaudits,including Mossad Msdossary Aldossa

104、ry at FIFA,Khalid oKhaliD Qasim in Rocket League and Geekay in the IAC101.The planned smart city development of Neom is set to include the largest centre for game development in the world and the countrys sovereign wealth fund has launched a holding company,the Savvy Games Group,which has already in

105、vested$1.5 billion acquiring two tournament organisers,Germanys ESL Gamingknown for the CS:GO and DOTA 2 events and London-based esports platform FACEIT Group102.The Savvy Games Group reportedly plans to spend$37.8 billion in gaming103 and establish 250 game companies and create 39,000 jobs104.It re

106、cently announced a$265 million investment in Chinese esports company VSPO105.The UAE is building its own gaming ecosystem.The country has the highest expected revenue per user in esports in the region106 and the highest number of adult gamers globally,with 91%of residents gaming at least occasionall

107、y107.The UAE gaming market was valued at$400 million in 2021 with 73%of its 10 million population active gamers and 41%spending money on games108.Source:Statista109As a high-income country,the UAE has the highest gaming expenditure per capita in the region and a weekly average of 14 hours per user p

108、er week spent playing games110.It was also the 5th largest market globally for gaming influencers111.High spending makes it an appealing market for the industry.In 2020,a majority of paying gamers(91%)spent money on in-game items or virtual goods within the six months;the average gamer in the countr

109、y spends$115 per year112.The UAEs regionally strong business environment and infrastructure,and status as a gateway to the Middle East and Asia Pacific regions,are other draws113.101 https:/wired.me/culture/the-middle-easts-gaming-industry-is-taking-charge/102 https:/wired.me/culture/the-middle-east

110、s-gaming-industry-is-taking-charge/103 https:/ 104 https:/www.spa.gov.sa/viewfullstory.php?lang=en&newsid=2388379#2388379 105 https:/ https:/ 107 https:/ https:/www.moec.gov.ae/documents/20121/0/2022_03_25_Gaming+Sector+Heatmap+in+English.pdf/1fe6f504-59f2-6b4f-c368-9a4af7760694?t=1650871445100 109

111、https:/ https:/ 111 https:/www.moec.gov.ae/documents/20121/0/2022_03_25_Gaming+Sector+Heatmap+in+English.pdf/1fe6f504-59f2-6b4f-c368-9a4af7760694?t=1650871445100 112 https:/www.moec.gov.ae/documents/20121/0/2022_03_25_Gaming+Sector+Heatmap+in+English.pdf/1fe6f504-59f2-6b4f-c368-9a4af7760694?t=165087

112、1445100 113 https:/ United Arab EmiratesNigeriaIndonesiaChinaIndiaSpainUnited StatesUKFinland Japan020406080100Occassional GamersFrequent GamersWHERE VIDEO GAMES ARE POPULAR AMONG ADULTSShare of adults saying they played video games in selected countries in 2022(%)1,000-7,600 online adults(18-64 y/o

113、)surveyed Apr-21 to Mar-22Smart Phone Users23Paris-headquartered Ubisoft,an international game developer,set up its office in Abu Dhabi in 2011,the first major video game studio to be based in the UAE capital114.More recently,the combination of avid gamers,high mobile penetration,high incomes and a

114、strong business environment have encouraged Chinese investment,most notably Tencent,the gaming giant,to set up its MENA headquarters in Dubais Internet City115.Tencent said it was drawn to Dubai by the large market and ecosystem for games development and plans to encourage local gaming116.The Tencen

115、t-DIC partnership will focus on creating a platform to invest in and improve the regional gaming market and encourage local gamer enthusiasts to push the boundaries of innovation117.Tencent is one of the eminent global platforms in gaming,with ownership stakes in companies including Fortnite,Ubisoft

116、,Activision-Blizzard and Riot Games.Los Angeles-based Riot Games has established their office in Dubai to create impactful experiences for gamers in the MENA region118.International investors are showing increased interest in gaming companies of different sizes and maturity levels in the region,supp

117、orted by ecosystems such as the DMCC Gaming Centre which backs local businesses and provides a platform to attract international attention.Notable deals include UAE-based gaming start-up Jawaker,acquired by Swedish games company Stillfront Group for$205 million in 2021,its second MENA acquisition fo

118、llowing the purchase of Jordan-based Babil Games119.The same year,US entertainment company Waysun acquired Dubai-headquartered Boss Bunny Games,which became its publishing arm in the Middle East,North Africa and Turkey120.Source:UAE Ministry of Economy 114 https:/ 115 https:/ 116 https:/ 117 https:/

119、 https:/ 119 https:/ https:/www.pocketgamer.biz/news/77619/waysun-acquires-majority-share-of-boss-bunny-games-to-lead-menat-publishing-operations/MOBILEGAMINGAR/VRGAMINGCLOUDGAMINGIn common with the global market,mobile is the most popular gaming platform in the UAE,although consoles are close behin

120、d.69.1%of UAE adults play mobile games.The most popular genres in mobile gaming are puzzle(40%),racing(35%)and shooter(33%).The UAE government forecasts AR and VR will contribute$4.1 billion(AED 15.05 billion)to the UAE economy by 2030,boosting the countrys GDP by 1%and creating 42,000 jobs.The emir

121、ate of Dubai is already home to the largest VR and AR theme park in the world.Cloud gaming has been available through cable services in the UAE since 2019,when Etisalat began to offer console games through its eLife set-top box,as the government seeks to grow the domestic gaming market as part of it

122、s digital transformation efforts.GAMING PLATFORMS:FACT BOX24GOVERNMENT SUPPORT IN UAEThe UAE sector is significantly driven by government-led initiatives.The gaming industry is a priority sector in the UAEs 10-year National Strategy for the Cultural and Creative Industries121 and Saudi Arabia and th

123、e UAE have introduced policies to encourage game localisation,local game development,new studios and offices of international game companies,and esports hosting122.In the UAE,the regulatory environment supports gaming companies on issues from code of conduct to IPS and visa standards123.The DMCC Gam

124、ing Centre,based in Dubais thriving business district,JLT,is a leading gaming ecosystem which supports collaboration,education,content development,gaming events and employment in the gaming industry.It will host esports events and tournaments and offers accelerators and market entry programmes to de

125、velopers through AstroLabs,a regional accelerator.Member companies can also enjoy comprehensive support and free zone services from DMCC including licensing activities in gaming and esports as well as advanced infrastructure such as access to DMCC Crypto Centre and a wide range of educational events

126、 and seminars124125.DMCC has partnered with Brinc,a venture capital firm,to provide members with$150 million funding through their accelerator programmes ZK Advancer and The Sandbox Metaverse.These programmes are open to members of the DMCC Gaming Centre to develop games on blockchain and web3 techn

127、ologies126,with the Sandbox Metaverse Accelerator Programme aiming to mentor and invest in start-ups in metaverse gaming127.With the DMCC Crypto Centre housing over 550 crypto,blockchain and web3 companies,gaming companies can access the latest technology and bring blockchain gaming to the next leve

128、l128.The Abu Dhabi Gaming Initiative(AD Gaming)is a significant government-led effort to turn the emirate into a global hub by focusing on education in-game development and esports,providing career opportunities and creating world-class content129.Mubadala Investment Company and AD Gaming have signe

129、d an MoU to build a gaming and esports ecosystem in Abu Dhabi and the UAE,creating a framework for collaboration,content development,events and employment130 131.AD Gaming is focused on making the region business-friendly for the gaming industry,supporting locally developed gaming content and delive

130、ring education and skills in areas like VR,coding and game design.AD Gaming will also host global esports events132 133.One of the worlds 121 https:/ https:/ https:/www.adgaming.ae/en/the-support-system 124 https:/www.dmcc.ae/news/dmcc-advance-mena-regions-usd-18-billion-gaming-industry-through-laun

131、ch-dmcc-gaming-centre 125 https:/landing.dmcc.ae/gaming-ecosystem 126 https:/www.dmcc.ae/news/dmcc-advance-mena-regions-usd-18-billion-gaming-industry-through-launch-dmcc-gaming-centre 127 https:/www.brinc.io/metaverse/128 https:/landing.dmcc.ae/cryptocentre 129 https:/www.adgaming.ae/en/who-we-are

132、130 https:/www.moec.gov.ae/documents/20121/0/2022_03_25_Gaming+Sector+Heatmap+in+English.pdf/1fe6f504-59f2-6b4f-c368-9a4af7760694?t=1650871445100 131 https:/ https:/www.adgaming.ae/en/who-we-are 133 https:/ successful DOTA 2 esports teams,Nigma Galaxy,has relocated to Abu Dhabi as part of AD Gaming1

133、34 and will partner with local real estate company Aldar to explore the inclusion of gaming spaces within residential communities and the development of an esports training facility for Nigma Galaxy players135.In 2020,twofour54 and AD Gaming forged a partnership with Unity Technologies to set up the

134、 Centre of Excellence at the AD Gaming Hub,one that aims to provide training and support to students,professionals and small businesses.Another highlight of the collaboration is the train the trainer initiative,with Unity collaborating with institutions including Abu Dhabi University,NYU Abu Dhabi a

135、nd the University of Sharjah to train academics to teach VR and game development,as well as artificial intelligence and coding136.Regional esports leaders like Power League Gaming and Nasr Esports are also based in the Emirates and the UAE hosted the first MENA Games for Change Summit on Abu Yas Isl

136、and and will hold the Global Esports Federation(GEF)s Global Esports Games in 2025137.The Blast Premier World Final 2022 held in Abu Dhabi in December 2022 saw eight teams compete in the Etihad Arena for a prize of$1,000,000138,while the Dubai Esports Festival in 2022 included$2,000,000 in prize mon

137、ey for the PUBG Global Championship139.The proposed Dubai X-Stadium would be the first esports-dedicated venue in the Middle East140.Apart from current initiatives,the industry believes there is more that policymakers can do.“The government can help with addressing the stigma.Now that the government

138、 is talking about gaming in a positive way,it shapes the conversation and the stigma into the right direction,”says Kajetski.Facilitating the process of visa applications for players would also help the industry to develop.“There are multiple occasions when we have won tournaments that are regional

139、finals,but our players havent been able to travel to the end destination.Or vice versa,theres a tournament in Dubai,but the overseas player couldnt attend,”explains Kajetski.“I think the government can handle this in the same way we have sports visas for football superstars.They could issue recommen

140、dation letters and state that theyre travelling for a good cause.”134 https:/www.adgaming.ae/en/home#teamNigma 135 https:/ https:/ 137 https:/ 138 https:/ 139 https:/ 140 https:/ 25GAMING INVESTMENTS,COMPANIES AND START-UPS IN UAEUAE-based gaming initiatives and companiesPixoul GamingPixoul Gaming i

141、s a 4,500 square metre space located in Al Qana,a waterfront destination in UAEs capital141.It is an integrated immersive entertainment complex that features five different zones,ten VR experiences,an esports bar and esports arena,the sports academy and some gaming broadcasting studios 142.Pixoul ha

142、s its own education programme available for schools from grade 1 to grade 12,offering students the chance to experience the most advanced VR technology,develop their programming skills and learn the insights of esports as a discipline143.Fenix GamesFenix Games was founded last year with$150 million

143、in funding led by Phoenix Group and Cypher Capital144.Batal GamingAbu Dhabi based Batal Gaming offers daily pay-to-play tournaments that offer cash prizes145.YaLLa EsportsDubai-based YaLLa Esports fields esports teams for games including Hearthstone,Call of Duty,and Fortnite.Partners include the Rep

144、ublic of Gamers,Western Digital,and Logitech G146.OnlySpaceDubai-based OnlySpace develops web3 based games that integrate NFTs147.141 https:/ 142 https:/ https:/ https:/ https:/ 146 https:/ 147 https:/ 26 LOCALISATIONGlobal games devised by international developers dominate gaming in the GCC region.

145、The top mobile games played in the GCC today,for example,are PUBG Mobile,Intikam Al Salatin,Fortnite,and Rise of Kingdoms.However,the demand for localised content remains strong and unfulfilled,according to analysts148.Brands have invested in localised content for the Arab world for over two decades

146、,with Sonys 2004 Arabic gaming title This is Football in 2004,and its Arabian Dota League esports tournament.More recently global gaming companies are adapting their games to appeal to the regions consumers149.Ubisofts Assassins Creed Origins transports players to Egypt,where they can view landmarks

147、 and tour Egypts history,while EA Sports F1 22 features Abu Dhabis Yas Marina Circuit150.Abu Dhabi based Falafel Games produces games specifically for Arabic speakers151,while ESTAZ hosts tournaments for Arabic speaking players152.The localisation of games can be achieved through AR/VR gaming techno

148、logies as a driving force for tourism,according to El Mir.“As tourism is a big ambition now,some touristic destinations could be used as maps in the games of AR/VR setting.”148 https:/ 149 https:/ 150 https:/ 151 https:/falafel- https:/www.estaz.gg/about-us 2728CHALLENGES AND THE ROAD AHEADDespite i

149、ts growing popularity and market potential,as a fast-growing industry,the gaming and esports sector faces unique challenges and growing pains.Professionalising the sector,strengthening business competencies in start-ups and gamer organisations,and designing the right regulatory and governance framew

150、ork,are critical to support the industrys development.Experts highlight professionalisation as a priority area.Gaming and esports can be highly paid careers for the most talented competitors and emerging revenue streams,from merchandise to branded apparel,indicate financial opportunities for entrepr

151、eneurs and start-ups in the wider ecosystem.Turning gaming and esports into a well-developed commercial business requires an integrated approach to skills,education,certification and governance.At the player level,training,performance science and player care are critical as elite performers can be s

152、ubject to the punishing mental and physical health toll of often intensive scheduling153.Complexity,an esports organisation,is among those investing in health and wellbeing for competitors,mimicking the important role of performance science in traditional sports today.Competitors also need support t

153、o design long-term viable livelihoods for themselves,including after retirement,such as in commentating or punditry as with other sports.Competition integrity is a second professionalisation priority to crack down on cheating and unethical conduct.A famous bug exploit in Counter-Strike led to the ba

154、nning of 30 coaches.While this was a welcome sign of accountability in the industry,it also served as a reminder that,as with other sports,regulators face ongoing challenges in cracking down on cheaters154.Education pathways are emerging to bring greater legitimacy to the sector.Global education com

155、pany Pearson,for instance,has created a BTEC qualification in Esports in partnership 153 https:/ https:/ mobile gamers worldwide,making mobile devices the most popular gaming platform1.7 Billion 29with British Esports155.Professionalisation could in turn help tackle stigma against esports and gaming

156、,for instance among parents who may not perceive it as a healthy use of time let alone a professional track for their children.Experts advise that,to thrive,esports and gaming needs professional training and pathways for all of the functions,including coaches and referees.Professionalisation is a ke

157、y consideration for MENAs home-grown industry too.While the region boasts abundant raw talent in terms of streamers,influencers and professional players,it needs more structure,via agencies,management and advisory functions.Companies in the region also report difficulty finding personnel who combine

158、 passion for gaming with professional experience.With the right business infrastructure,Middle Eastern esports and gaming talent could compete with other markets and home-grown companies could find a niche in a newly forming global industry.As revenues and financial opportunities grow,there will be

159、market consolidation,bringing further commercial acumen and structure.Major acquisitions globally,such as Microsofts proposed purchase of Activision,show the appeal of gaming companies as M&A targets156.But this will also prompt antitrust evaluation and review,as with the UKs Competition and Markets

160、 Authority investigation into the distribution and browser dynamics of cloud gaming157 and the FTC review of Microsofts proposed acquisition of Microsoft-Acquisition deal.Regulators will look to balance the benefits of scale with the need for competition and diversity in market participants.Regional

161、 and local policy norms will also influence and shape regulatory review.The UAE,for example,has guidelines to protect users from harmful content and restrict access to sites that contravene local law,such as gambling158.Gaming and esports has proven itself to be a resilient,global entertainment nich

162、e with strong adoption across demographic groups and geographies.The MENA region is well-positioned to participate and lead the industry thanks to its engaged population,government support and existing assets as an entertainment and media hub.Success could help the region as part of its economic div

163、ersification strategy towards innovation-driven technology and services.155 https:/ https:/www.gov.uk/cma-cases/microsoft-slash-activision-blizzard-merger-inquiry 157 https:/www.gov.uk/cma-cases/mobile-browsers-and-cloud-gaming 158 https:/ AR and VR gaming 2026 market estimate,which would drive a ne

164、w era in gaming$26 Billion 30INDUSTRY RECOMMENDATIONSImprove public perception of the industry and of gaming and esports as safe to engage in,and as viable career pathways for young people,and tackle stigma.Diversify revenue from sponsorship to new direct-to-fan monetisation models including digital

165、 merchandising,loyalty programmes and training/learning platforms for amateur gamers159.Develop appropriate regulatory safeguards to ensure privacy,security and safety online in the gaming digital ecosystem.Professionalise the talent pool,including referees,coaches and business development functions

166、.Explore fruitful intersections between gaming/esports with consumer industries like music,fashion,film and music.Develop a pro-business environment for the industry,including smoother visa systems to allow esports professionals and audiences to attend live events.Develop NFTs,digital assets and tokens responsibly,allowing new layers of game-play and commercialisation without compromising financial security or enabling scams or frauds.DEFINING THE 159 https:/