How Gametech is Transforming the MEA Region

The gametech industry in the Middle East and Africa (MEA) is growing significantly, driven by increasing mobile use and a young, tech-savvy population. Countries like Saudi Arabia, Nigeria, and Türkiye are emerging as key markets, offering opportunities for innovation as fintech and gaming continue to converge.

Gametech has gained global popularity, fuelled by increased digitalisation and mobile phone usage. The pandemic further accelerated this trend as people turned to digital entertainment, contributing to the projected $340billion value of the gaming market by 2027.

In the MEA region, characterised by a youthful and digitally savvy population, especially in the Gulf Cooperation Council (GCC) and across Africa with high mobile penetration, gametech presents a lucrative opportunity.

Gametech Landscape in the Middle East and Africa – Sources: Richie Santosdiaz and The Fintech Times

Mobile gaming

As gametech intersects with fintech, games, like any business, aim to monetise and enhance revenue streams. In the realm of mobile gaming, in-app purchases have become commonplace, enriching gamers’ experiences and integrating with digital wallets. Remarkably, the rise of fintech within gaming parallels the growth of the gaming industry and gametech globally and in the MEA region.

In 2016, gaming expenditure in the Middle East and North Africa (MENA) region totalled $3.2billion. By the end of 2022, spending on mobile gaming alone in MENA had surged to $2.3billion. In 2017, the video gaming industry’s revenue in the Middle East amounted to approximately $3billion, with Türkiye, Saudi Arabia, and the UAE emerging as key markets. Analysing the presented charts, Saudi Arabia leads in gaming revenue in the MENA region, while Nigeria and South Africa dominate the gaming revenue landscape in Sub-Saharan Africa (SSA).

Other key metrics, such as ARPPU (Average Revenue Per Paying User), shed light on Saudi Arabia’s gaming market, boasting the world’s highest at $270, surpassing even China, the largest gaming market globally, with $32. Historically, prior to economic reforms like Saudi Vision 2030, leisure and entertainment opportunities were limited in the Kingdom. Hence, the emergence of gametech aligns well with Saudi Arabia’s young, tech-savvy, ambitious, and evolving demographic.

Arabic usage

Moreover, the MEA region offers a fertile ground for the gaming and gametech industry due to the widespread use of Arabic, the world’s fifth most spoken native language. Approximately 70 per cent of the Arab world uses Arabic as their default language on smartphones, underscoring the significance of catering to Arabic speaking audiences in the gaming sector. The region has witnessed organic growth, with innovative products emerging, particularly those integrating blockchain and cryptocurrencies.

For instance, Nigeria has seen the rise of platforms like Gamic, a decentralised messaging platform facilitating engagement with Web3 products and services, and Scorefam, a platform where crypto and sports enthusiasts can earn rewards. Additionally, the ecosystem supporting such startups and companies is expanding, exemplified by initiatives like the Africa Game Developers Association, boasting members from over 18 African countries.

Despite Israel’s status as a prominent tech hub, its presence in the gaming sector is still evolving. However, reports from Deloitte highlight Israel’s global successes in gaming since the early 2000s, with notable companies like Playtica and Plarium making significant strides in the industry.

Türkiye

Türkiye has emerged as a significant player in the MEA gametech sector, making headlines with the production of unicorns like Dream Games and Peak, which was the country’s first unicorn after being acquired by American Zynga in June 2020.

With over 48 per cent of its population under the age of 30 and a high percentage of internet users engaged in gaming, Türkiye has become a hotbed for gaming activity. Mobile gaming, in particular, has witnessed explosive growth, with over 2.1 billion downloads across all platforms in the country in 2022. Istanbul (second) and Ankara (fourth) have emerged as major hubs for gaming studios, ranking among the top cities in

Europe for gaming development, alongside first place London and third place Paris. Moreover, esports, a burgeoning sector globally, has gained popularity in much of the MEA region. Governments have begun to support the development of esports, as evidenced by Saudi Arabia’s launch of its National Gaming and Sports Strategy in September 2022. With a significant investment from the sovereign wealth fund, Saudi Arabia aims to position itself as a global leader in gaming and esports by 2030.

Looking ahead, the development of the metaverse and the evolution of gambling regulations, such as those seen in the United Arab Emirates (UAE), coupled with the region’s youthful population, mobile literacy, and increasing adoption of digital currencies like cryptocurrency, are poised to drive further innovation and growth in the gametech sector across the MEA region.

This is an excerpt from The Fintech Times: Middle East and Africa (MEA) 2024 Report.

The post How Gametech is Transforming the MEA Region appeared first on The Fintech Times.

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