KSA Games Market Outlook to 2030

KSA Games Market Overview

• The KSA Games Market is valued at USD 510 million, supported by the Kingdoms digitalization efforts and the burgeoning youth population's interest in gaming. With a compound annual growth rate (CAGR) of 18.5% between 2018 and 2023, the market benefits from initiatives under Saudi Vision 2030, promoting esports, local game development, and digital entertainment. Government support, increased internet penetration, and investments in infrastructure further boost the market's expansion.

• Riyadh and Jeddah dominate the market, driven by a higher concentration of young tech-savvy populations, ample disposable incomes, and extensive infrastructure for digital connectivity. These cities host large esports events and gaming conventions, positioning them as hubs for both domestic and regional gaming communities. The Eastern Province also shows strong growth, benefiting from proximity to the Gulf region and an emerging interest in digital entertainment.
• In 2024, the Saudi government unveiled the National Gaming and E-Sports Strategy, aiming to generate SAR 20 billion in revenue from the gaming sector by 2030. This initiative includes incentives for foreign gaming companies, fostering a supportive business environment that facilitates knowledge transfer and encourages collaboration with local developers.

KSA Games Market Segmentation

By Game Type: The market is segmented by game type into console gaming, mobile gaming, PC gaming, VR games, and AR games. Among these, mobile gaming holds the dominant share due to the high penetration of smartphones, relatively lower barriers to entry, and the popularity of mobile-based gaming platforms among the young population. The market is further driven by continuous improvements in mobile internet speed, especially with the adoption of 5G, which has enhanced gameplay quality.

By Genre: The market is also segmented by genre into action, strategy, RPG (role-playing games), simulation, and sports. Action games lead this segment due to high demand for fast-paced games that offer immersive experiences. The rise of popular franchises and localized content has further driven the dominance of action games, appealing to the preferences of the KSA's gaming audience for engaging and visually stimulating experiences.

KSA Games Market Competitive Landscape

The market is characterized by a few dominant players, both global and regional, leveraging brand reputation, partnerships, and game localization strategies. International companies like Tencent and Activision Blizzard are highly competitive due to their well-established gaming franchises and substantial investments in local partnerships.

KSA Games Market Analysis

Market Growth Drivers

• Surging Demand for Online Gaming in Saudi Arabia: In 2024, the Saudi gaming sector saw a dramatic increase in the number of players in the online gaming space, with around 18 million active gamers nationwide, a result of higher internet penetration and a tech-savvy population. The governments efforts to expand 5G networks have further fueled demand for online multiplayer games, reaching nearly 90% of urban areas.
• Increased Local Content Production Supported by Government Initiatives: The Saudi government has invested heavily in gaming and e-sports content development, with over SAR 1 billion allocated in 2024 to support local gaming studios. This effort is part of a broader vision to position Saudi Arabia as a global gaming hub, and it has led to an increase in localized games catering specifically to the cultural nuances of the Kingdom.
• Youth Population Dominance: With nearly 40% of the Saudi population under the age of 25, there is a substantial target audience fueling the gaming market's growth. This demographic has shown a strong preference for digital entertainment, spending an average of SAR 3,000 annually on gaming. Additionally, the prevalence of gaming among Saudi youth is driving interest in e-sports and creating a sustainable demand for gaming products and services.

Market Challenges

• High Production Costs for Local Game Development: Despite government support, game development costs in Saudi Arabia remain high, with the average development cost for a standard game reaching around SAR 10 million. These high costs discourage smaller studios and independent developers, posing a significant challenge to market diversification and the growth of unique local content.
• Regulatory Challenges Surrounding Game Content: Game developers in Saudi Arabia face stringent content regulations, with over 20% of global games released in 2024 experiencing delays or modifications before being approved for the Saudi market. These regulatory hurdles slow down market access for international games and may hinder foreign investment in the Saudi gaming industry.

KSA Games Market Future Outlook

Over the next five years, the KSA Games industry is expected to grow, bolstered by favorable government policies, expanding esports infrastructure, and investments in game development. The focus on game localization, combined with increasing demand for immersive experiences like VR and AR, positions the market for sustained growth.

Future Market Opportunities

• Rise in Subscription-Based Gaming Services: Over the next five years, Saudi Arabia will likely witness substantial growth in subscription-based gaming services, with local gamers expected to embrace bundled gaming content offerings by 2029. This trend aligns with the increasing preference for high-quality, uninterrupted gaming experiences.
• Growth of the E-Sports Economy: Saudi Arabias e-sports sector is anticipated to grow significantly, with projected revenues potentially doubling by 2029 as the country hosts more international tournaments. Government incentives and state-of-the-art e-sports facilities will support this growth, making Saudi Arabia a global center for competitive gaming.