KSA Gaming Market Outlook to 2030

KSA Gaming Market Overview

• The Saudi Arabia gaming market is valued at USD 1.87 billion, driven by the rapid adoption of mobile gaming, increased internet penetration, and government initiatives like Vision 2030. These factors have contributed significantly to the market's expansion, with an increase in disposable income and a tech-savvy younger population. Additionally, the Saudi governments investments in technology and the entertainment sector, as part of its diversification plan, have created a favorable environment for the gaming industry to thrive.

• Key cities dominating the gaming market in Saudi Arabia include Riyadh, Jeddah, and Dammam. These cities have a higher concentration of tech infrastructure, urbanization, and wealth, which drives greater access to gaming devices and high-speed internet. Riyadh leads due to its position as the capital and the hub of economic and technological growth. Jeddah follows closely due to its population density and its status as a commercial center. These cities also host major gaming events and e-sports competitions, further contributing to their dominance in the sector.
• Saudi Arabia enforces strict censorship policies on gaming content, primarily through the General Commission for Audiovisual Media (GCAM). These regulations aim to ensure that all gaming content aligns with cultural and religious norms. For example, games with themes of violence, sexuality, or political dissent are often subject to bans or modifications. This regulatory framework can limit the availability of certain games in the market, impacting both international and local developers.

KSA Gaming Market Segmentation

By Device Type: The Saudi Arabia gaming market is segmented by device type into consoles, mobile devices, and PC/laptops. Recently, mobile devices have dominated the market due to the high penetration of smartphones and affordable mobile data plans. With a growing number of mobile gamers, particularly among the youth, mobile gaming has become the most popular gaming medium. Games like PUBG Mobile and Call of Duty: Mobile have seen a significant rise in Saudi Arabia, attributed to the convenience of gaming on the go.

By Game Type: The Saudi Arabia gaming market is segmented by game type into action and adventure, sports and racing, simulation and strategy, role-playing games (RPGs), and puzzle/casual games. Action and adventure games hold the largest market share, driven by their immersive experiences and the popularity of titles like Call of Duty, Fortnite, and Assassins Creed. This genre is particularly appealing due to its competitive nature and social interaction components, which are key drivers in Saudi Arabias highly connected gaming community.

KSA Gaming Market Competitive Landscape

The Saudi Arabia gaming market is dominated by a few key global and regional players, who have established a strong presence through partnerships, localized content, and e-sports sponsorships. Key companies include Sony Interactive Entertainment and Microsoft Corporation, which continue to dominate the console market, while Tencent and NetEase have seen significant success in mobile gaming. Additionally, local developers are emerging with support from government initiatives.

KSA Gaming Industry Analysis

Growth Drivers

• Rising Youth Population: Saudi Arabia has a predominantly young population, with about 70% of its citizens under the age of 35, according to the World Bank. This demographic structure fuels the demand for digital entertainment, particularly gaming, as young people are more likely to engage in gaming activities. The youth also have high disposable income levels, supporting gaming adoption. The population of gamers has increased rapidly with the advancement of mobile technology and better internet connectivity. These factors make the youth segment a key driver of gaming market growth.
• Increased Internet Penetration and Mobile Device Adoption: As of 2024, Saudi Arabia boasts an internet penetration rate of over 99%. This high level of internet access, coupled with a significant rise in mobile device usageestimated to be around 41 million deviceshas facilitated widespread adoption of mobile gaming. The increased availability of 5G networks further enhances mobile gaming experiences, driving user engagement and contributing to the gaming market's rapid growth.
• E-sports Growth and Sponsorship Deals: Saudi Arabia is becoming a key player in global e-sports, hosting large-scale events such as the Gamers8 festival, which attracts top international teams. The government is also forming partnerships with leading e-sports organizations to strengthen the countrys position as a hub for competitive gaming in the Middle East. These initiatives are driving the rapid growth of e-sports and enhancing the overall gaming market in Saudi Arabia.

Market Challenges

• Regulatory Constraints: The Saudi gaming market faces strict content regulations, with certain games being censored or banned due to cultural considerations. The regulatory body enforces policies that restrict the sale or modification of games to comply with local norms, posing challenges for developers. These restrictions can hinder market growth and complicate entry for both international and local game developers, creating additional hurdles in content creation and distribution.
• High Localization Costs: Gaming companies entering the Saudi market must invest in localization, ensuring games are translated into Arabic and adapted to fit cultural expectations. This process involves significant costs, including meeting regulatory requirements. The ongoing need to adjust content for evolving cultural norms and regulations adds further complexity, making it especially difficult for smaller developers to compete in the market

KSA Gaming Market Future Outlook

Over the next few years, the Saudi Arabia gaming market is expected to witness continuous growth, driven by a rapidly expanding digital infrastructure, government support for the gaming and e-sports sectors, and the increasing popularity of mobile and cloud gaming. The market's trajectory will also benefit from growing youth engagement, rising investments in game development, and the hosting of major e-sports tournaments.

Market Opportunities

• Growing Female Gamer Segment: The number of female gamers in Saudi Arabia is steadily increasing due to changing societal norms and greater access to digital entertainment. This emerging demographic offers a promising opportunity for gaming companies to create content specifically tailored to female gamers, from casual mobile games to more complex narrative-driven experiences. This shift opens up a previously untapped market segment, encouraging more diverse game development and engagement.
• Development of Local Game Studios: Government initiatives to diversify the economy are creating opportunities for the growth of local game studios in Saudi Arabia. These initiatives include training programs and funding aimed at nurturing local talent in game design and development. As a result, Saudi developers are gaining the skills and support needed to create culturally relevant games and compete on the global stage, boosting the local gaming ecosystem.