UAE gaming industry on track to hit $492 million by 2027

The video game industry in the United Arab Emirates is poised for significant growth in the coming years, with market revenue projected to reach $492 million by 2027. According to a recent Statista report, the UAE’s gaming sector is expected to generate close to $421 million by the end of 2024, marking a steady annual growth rate of 5.4% through 2027. This surge in the gaming market reflects the increasing popularity of video games among the tech-savvy population of the UAE.

Mobile gaming plays a major role in this expansion, with the mobile games segment projected to account for $173.60 million of the 2024 market revenue. As more consumers in the UAE embrace smartphone gaming, user penetration is expected to rise from 14.7% in 2024 to 15.9% by 2027, bringing the total number of gamers to 1.7 million. This growing user base highlights the increasing demand for mobile games, supported by the country’s high smartphone adoption rates.

Dubai’s vision for the gaming sector is ambitious, with the city’s ‘Programme for Gaming 2033’ initiative aiming to position it among the top 10 global gaming hubs by 2033. As part of this strategy, Dubai is heavily investing in digital gaming to boost its economy and aims to contribute approximately $1 billion to its GDP by the target year. Supporting this vision is the recent introduction of the ‘Dubai Gaming Visa,’ which is designed to attract talent and investment to the region, turning innovative gaming ideas into successful ventures.

The UAE has also made strategic moves to enhance its gaming ecosystem, including the Abu Dhabi Investment Office’s partnership with Tamatem Games, a Jordanian mobile games publisher. Tamatem has relocated its headquarters to Abu Dhabi and is set to establish a “centre of excellence,” creating new job opportunities and further cementing the UAE as a growing hub for game development.

While the UAE gaming market continues its rise, it’s worth noting that China remains the global leader in gaming revenue, with a projected $94,490 million in 2024. Nonetheless, the UAE’s robust growth trajectory and increasing average revenue per user (ARPU), expected to reach $279.60 by 2024, underscore the promising future of the gaming industry in the region.

The UAE’s gaming market is positioned for substantial growth, driven by a rapidly expanding user base, strategic investments, and the continued dominance of mobile gaming, marking an exciting period of evolution in the country’s digital entertainment landscape.