Middle East ai gaming market report Size, Share, Growth Drivers, Trends, Opportunities & Forecast 2025–2030

The Middle East AI Gaming Market, valued at USD 310 million, is expanding due to rising smartphone penetration, eSports popularity, and AI innovations across the region.

Region:Middle East

Author(s):Shubham

Product Code:KRAC2826

Pages:89

Published On:October 2025

About the Report

Base Year 2024

Middle East AI Gaming Market Overview

  • The Middle East AI Gaming Market is valued at USD 310 million, based on a five-year historical analysis. This growth is primarily driven by the increasing adoption of mobile gaming, advancements in AI technology, and a surge in internet penetration across the region. The rise of eSports and the popularity of online gaming platforms have also significantly contributed to the market's expansion.
  • Countries such as the United Arab Emirates, Saudi Arabia, and Egypt dominate the Middle East AI Gaming Market due to their robust digital infrastructure, high smartphone penetration, and a young, tech-savvy population. The UAE, in particular, has become a hub for gaming events and investments, while Saudi Arabia's Vision 2030 initiative aims to diversify the economy, including significant investments in the gaming sector.
  • In 2023, the Saudi Arabian government implemented regulations to promote the gaming industry, including the establishment of the Saudi Esports Federation. This initiative aims to support local game developers and attract international gaming companies, fostering a competitive environment that encourages innovation and growth in the gaming sector.
Middle East AI Gaming Market Size

Middle East AI Gaming Market Segmentation

By Type:The segmentation of the market by type includes various categories such as Mobile Games, PC Games, Console Games, Cloud Gaming, AI-Enhanced Games, eSports, Web-based Games, and VR/AR Games. Among these, Mobile Games have emerged as the leading sub-segment due to the widespread use of smartphones and the increasing preference for gaming on mobile devices. The convenience and accessibility of mobile gaming have attracted a diverse audience, making it a dominant force in the market.

Middle East AI Gaming Market segmentation by Type.

By End-User:The market is segmented by end-user into Casual Gamers, Competitive Gamers, Professional eSports Players, Game Developers, and Educational Institutions. Casual Gamers represent the largest segment, driven by the increasing availability of free-to-play games and the growing trend of gaming as a leisure activity. This segment's accessibility and variety of game options cater to a broad audience, making it a key driver of market growth.

Middle East AI Gaming Market segmentation by End-User.

Middle East AI Gaming Market Competitive Landscape

The Middle East AI Gaming Market is characterized by a dynamic mix of regional and international players. Leading participants such as Sandsoft Games, Tamatem Games, Boss Bunny Games, Falafel Games, UMX Studios, Babil Games, Maysalward, Nine66 (Savvy Games Group), Playhera, The Arab Games Company, Ubisoft Entertainment S.A., Electronic Arts Inc., Riot Games, Inc., Epic Games, Inc., Tencent Holdings Limited contribute to innovation, geographic expansion, and service delivery in this space.

Sandsoft Games

2020

Dubai, UAE

Tamatem Games

2013

Amman, Jordan

Boss Bunny Games

2019

Riyadh, Saudi Arabia

Falafel Games

2009

Dubai, UAE

UMX Studios

2015

Beirut, Lebanon

Company

Establishment Year

Headquarters

Group Size (Large, Medium, or Small as per industry convention)

Revenue Growth Rate (regional gaming/AI segment)

Monthly Active Users (MAU)

Average Revenue Per User (ARPU)

User Retention Rate (30/90/180-day)

Market Penetration Rate (Middle East region)

Middle East AI Gaming Market Industry Analysis

Growth Drivers

  • Increasing Smartphone Penetration:The Middle East has seen a significant rise in smartphone usage, with over90 million smartphone usersreported in the future. This number is projected to reach100 million, driven by affordable devices and improved internet connectivity. The World Bank indicates that mobile internet subscriptions in the region have increased by15% annually, facilitating access to AI gaming applications. This growing user base is crucial for the expansion of mobile gaming, which is expected to dominate the market.
  • Rising Disposable Income:The average disposable income in the Middle East is projected to reachUSD 20,000 per capita, reflecting a5% increase. This rise in income allows consumers to spend more on entertainment, including gaming. According to the IMF, the region's GDP growth is expected to be around3.5%, further enhancing consumer purchasing power. As a result, more individuals are likely to invest in gaming experiences, particularly those driven by AI technologies.
  • Growing Interest in eSports:The eSports market in the Middle East is projected to generate revenues of approximatelyUSD 1.5 billion, up fromUSD 1 billion. This growth is fueled by increasing viewership, with over20 million fansengaging in eSports events across the region. The rise of local tournaments and international partnerships is attracting investments, as highlighted by a30% increase in sponsorship deals. This trend is creating a fertile ground for AI gaming innovations and platforms.

Market Challenges

  • Regulatory Hurdles:The gaming industry in the Middle East faces significant regulatory challenges, with varying laws across countries. For instance, Saudi Arabia has stringent regulations that require licenses for game developers, which can take up tosix monthsto obtain. Additionally, the UAE has imposed age restrictions on certain gaming content, limiting market access. These regulatory complexities can hinder the growth of AI gaming companies looking to enter the market, as compliance can be costly and time-consuming.
  • Cultural Resistance to Gaming:Cultural attitudes towards gaming in the Middle East can pose challenges for market growth. In some regions, gaming is viewed negatively, with concerns about its impact on youth. A survey by the Arab Youth Survey indicated that40% of parents disapprove of gaming, citing concerns over addiction and social isolation. This cultural resistance can limit the acceptance of AI gaming technologies, making it essential for developers to create culturally sensitive content that resonates with local audiences.

Middle East AI Gaming Market Future Outlook

The future of the Middle East AI gaming market appears promising, driven by technological advancements and changing consumer preferences. As smartphone penetration continues to rise, more users will engage with AI-driven gaming experiences. Additionally, the increasing popularity of eSports and virtual reality gaming will likely attract investments and collaborations with local developers. The market is expected to evolve with innovative gaming solutions that cater to diverse audiences, fostering a vibrant gaming ecosystem in the region.

Market Opportunities

  • Expansion of Online Gaming Platforms:The growth of high-speed internet access, projected to reach90% coverage, presents a significant opportunity for online gaming platforms. This expansion allows developers to reach a broader audience, enhancing user engagement and revenue potential. The increasing demand for multiplayer and interactive gaming experiences will drive the development of innovative online platforms tailored to local preferences.
  • Collaborations with Local Developers:Partnering with local game developers can enhance content relevance and cultural acceptance. With over200 local game studiosoperating in the region, collaborations can lead to the creation of unique gaming experiences that resonate with Middle Eastern audiences. This strategy not only fosters innovation but also supports the growth of the local gaming industry, creating a sustainable ecosystem for AI gaming solutions.

Scope of the Report

SegmentSub-Segments
By Type

Mobile Games

PC Games

Console Games

Cloud Gaming

AI-Enhanced Games

eSports

Web-based Games

VR/AR Games

By End-User

Casual Gamers

Competitive Gamers

Professional eSports Players

Game Developers

Educational Institutions

By Distribution Channel

Online Platforms

Retail Stores

Mobile App Stores

Subscription Services

Telco Bundled Services

By Game Genre

Action

Adventure

Strategy

Simulation

Sports

Role-Playing Games (RPG)

Puzzle

Others

By Age Group

Children

Teenagers

Adults

Seniors

By Payment Model

Free-to-Play

Pay-to-Play

Subscription-Based

In-App Purchases

Ad-Supported

By Platform

Mobile

PC

Console

Cloud

VR/AR

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Ministry of Communications and Information Technology, National Media Council)

Game Developers and Publishers

Telecommunications Companies

Advertising and Marketing Agencies

Content Creators and Influencers

Gaming Hardware Manufacturers

Payment Processing Companies

Players Mentioned in the Report:

Sandsoft Games

Tamatem Games

Boss Bunny Games

Falafel Games

UMX Studios

Babil Games

Maysalward

Nine66 (Savvy Games Group)

Playhera

The Arab Games Company

Ubisoft Entertainment S.A.

Electronic Arts Inc.

Riot Games, Inc.

Epic Games, Inc.

Tencent Holdings Limited

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. Middle East AI Gaming Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 Middle East AI Gaming Market Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape


3. Middle East AI Gaming Market Analysis

3.1 Growth Drivers

3.1.1 Increasing smartphone penetration
3.1.2 Rising disposable income
3.1.3 Growing interest in eSports
3.1.4 Advancements in AI technology

3.2 Market Challenges

3.2.1 Regulatory hurdles
3.2.2 Cultural resistance to gaming
3.2.3 High competition from global players
3.2.4 Limited local content development

3.3 Market Opportunities

3.3.1 Expansion of online gaming platforms
3.3.2 Collaborations with local developers
3.3.3 Investment in AI-driven gaming solutions
3.3.4 Growth of virtual reality gaming

3.4 Market Trends

3.4.1 Increased use of AR and VR technologies
3.4.2 Rise of subscription-based gaming models
3.4.3 Integration of social features in gaming
3.4.4 Focus on mobile gaming experiences

3.5 Government Regulation

3.5.1 Licensing requirements for game developers
3.5.2 Age restrictions on gaming content
3.5.3 Tax incentives for local game studios
3.5.4 Data protection regulations for gamers

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. Middle East AI Gaming Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. Middle East AI Gaming Market Segmentation

8.1 By Type

8.1.1 Mobile Games
8.1.2 PC Games
8.1.3 Console Games
8.1.4 Cloud Gaming
8.1.5 AI-Enhanced Games
8.1.6 eSports
8.1.7 Web-based Games
8.1.8 VR/AR Games

8.2 By End-User

8.2.1 Casual Gamers
8.2.2 Competitive Gamers
8.2.3 Professional eSports Players
8.2.4 Game Developers
8.2.5 Educational Institutions

8.3 By Distribution Channel

8.3.1 Online Platforms
8.3.2 Retail Stores
8.3.3 Mobile App Stores
8.3.4 Subscription Services
8.3.5 Telco Bundled Services

8.4 By Game Genre

8.4.1 Action
8.4.2 Adventure
8.4.3 Strategy
8.4.4 Simulation
8.4.5 Sports
8.4.6 Role-Playing Games (RPG)
8.4.7 Puzzle
8.4.8 Others

8.5 By Age Group

8.5.1 Children
8.5.2 Teenagers
8.5.3 Adults
8.5.4 Seniors

8.6 By Payment Model

8.6.1 Free-to-Play
8.6.2 Pay-to-Play
8.6.3 Subscription-Based
8.6.4 In-App Purchases
8.6.5 Ad-Supported

8.7 By Platform

8.7.1 Mobile
8.7.2 PC
8.7.3 Console
8.7.4 Cloud
8.7.5 VR/AR

9. Middle East AI Gaming Market Competitive Analysis

9.1 Market Share of Key Players

9.2 Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Group Size (Large, Medium, or Small as per industry convention)
9.2.3 Revenue Growth Rate (regional gaming/AI segment)
9.2.4 Monthly Active Users (MAU)
9.2.5 Average Revenue Per User (ARPU)
9.2.6 User Retention Rate (30/90/180-day)
9.2.7 Market Penetration Rate (Middle East region)
9.2.8 Localization Index (Arabic content, cultural adaptation)
9.2.9 Customer Satisfaction Score (CSAT/NPS)
9.2.10 Return on Investment (ROI)
9.2.11 eSports Engagement Metrics (tournament participation, viewership)
9.2.12 AI Feature Adoption Rate (share of games with AI-driven features)

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis

9.5 Detailed Profile of Major Companies

9.5.1 Sandsoft Games
9.5.2 Tamatem Games
9.5.3 Boss Bunny Games
9.5.4 Falafel Games
9.5.5 UMX Studios
9.5.6 Babil Games
9.5.7 Maysalward
9.5.8 Nine66 (Savvy Games Group)
9.5.9 Playhera
9.5.10 The Arab Games Company
9.5.11 Ubisoft Entertainment S.A.
9.5.12 Electronic Arts Inc.
9.5.13 Riot Games, Inc.
9.5.14 Epic Games, Inc.
9.5.15 Tencent Holdings Limited

10. Middle East AI Gaming Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Engagement with local developers
10.1.2 Budget allocation for gaming initiatives
10.1.3 Collaboration with educational institutions

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 Investment in gaming infrastructure
10.2.2 Funding for AI research in gaming
10.2.3 Expenditure on marketing and promotions

10.3 Pain Point Analysis by End-User Category

10.3.1 Accessibility of gaming platforms
10.3.2 Quality of local content
10.3.3 Support for emerging technologies

10.4 User Readiness for Adoption

10.4.1 Familiarity with AI technologies
10.4.2 Willingness to invest in gaming
10.4.3 Interest in eSports participation

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 Evaluation of gaming performance metrics
10.5.2 Expansion into new gaming genres
10.5.3 User feedback integration for improvements

11. Middle East AI Gaming Market Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price


Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Identification of market gaps

1.2 Business model development

1.3 Value proposition analysis

1.4 Competitive landscape overview

1.5 Customer segmentation

1.6 Revenue stream identification

1.7 Cost structure analysis


2. Marketing and Positioning Recommendations

2.1 Branding strategies

2.2 Product USPs

2.3 Target audience identification

2.4 Marketing channels selection

2.5 Campaign planning

2.6 Performance metrics


3. Distribution Plan

3.1 Urban retail strategies

3.2 Rural NGO tie-ups

3.3 Online distribution channels

3.4 Partnerships with local retailers

3.5 Logistics and supply chain management


4. Channel & Pricing Gaps

4.1 Underserved routes

4.2 Pricing bands analysis

4.3 Competitor pricing strategies

4.4 Consumer price sensitivity

4.5 Recommendations for pricing adjustments


5. Unmet Demand & Latent Needs

5.1 Category gaps identification

5.2 Consumer segments analysis

5.3 Emerging trends exploration

5.4 Recommendations for product development


6. Customer Relationship

6.1 Loyalty programs design

6.2 After-sales service strategies

6.3 Customer feedback mechanisms

6.4 Community engagement initiatives


7. Value Proposition

7.1 Sustainability initiatives

7.2 Integrated supply chains

7.3 Unique selling points

7.4 Customer-centric approach


8. Key Activities

8.1 Regulatory compliance measures

8.2 Branding efforts

8.3 Distribution setup

8.4 Marketing campaigns


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product mix considerations
9.1.2 Pricing band analysis
9.1.3 Packaging strategies

9.2 Export Entry Strategy

9.2.1 Target countries identification
9.2.2 Compliance roadmap development

10. Entry Mode Assessment

10.1 Joint Ventures

10.2 Greenfield investments

10.3 Mergers & Acquisitions

10.4 Distributor Model


11. Capital and Timeline Estimation

11.1 Capital requirements analysis

11.2 Timelines for market entry


12. Control vs Risk Trade-Off

12.1 Ownership considerations

12.2 Partnerships evaluation


13. Profitability Outlook

13.1 Breakeven analysis

13.2 Long-term sustainability strategies


14. Potential Partner List

14.1 Distributors identification

14.2 Joint Ventures opportunities

14.3 Acquisition targets


15. Execution Roadmap

15.1 Phased Plan for Market Entry

15.1.1 Market Setup
15.1.2 Market Entry
15.1.3 Growth Acceleration
15.1.4 Scale & Stabilize

15.2 Key Activities and Milestones

15.2.1 Activity planning
15.2.2 Milestone tracking

Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of market reports from regional gaming associations and industry publications
  • Review of demographic and economic data from government databases and international organizations
  • Examination of trends in mobile and online gaming through digital analytics platforms

Primary Research

  • Interviews with game developers and publishers operating in the Middle East
  • Surveys targeting gamers to understand preferences and spending habits
  • Focus groups with industry experts and stakeholders to gather qualitative insights

Validation & Triangulation

  • Cross-validation of findings with multiple data sources, including sales figures and user engagement metrics
  • Triangulation of insights from primary interviews with secondary data trends
  • Sanity checks through expert panel reviews to ensure data reliability

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of total market size based on regional gaming revenue reports
  • Segmentation by gaming platforms (mobile, console, PC) and genres (action, strategy, etc.)
  • Incorporation of growth rates from emerging markets and demographic shifts

Bottom-up Modeling

  • Collection of revenue data from leading gaming companies operating in the region
  • Estimation of average revenue per user (ARPU) across different gaming segments
  • Volume estimates based on user acquisition and retention metrics

Forecasting & Scenario Analysis

  • Multi-factor regression analysis incorporating factors such as internet penetration and smartphone adoption
  • Scenario modeling based on potential regulatory changes and market entry of new players
  • Development of baseline, optimistic, and pessimistic forecasts through 2030

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Mobile Gaming Users120Casual Gamers, Mobile Game Developers
Console Gaming Market80Console Gamers, Retail Managers
Online Gaming Platforms100Platform Operators, Game Publishers
Esports Participation60Esports Athletes, Event Organizers
Game Development Insights50Game Designers, Software Engineers

Frequently Asked Questions

What is the current value of the Middle East AI Gaming Market?

The Middle East AI Gaming Market is valued at approximately USD 310 million, driven by mobile gaming adoption, advancements in AI technology, and increased internet penetration across the region.

Which countries dominate the Middle East AI Gaming Market?

What are the main growth drivers of the Middle East AI Gaming Market?

How has the Saudi Arabian government supported the gaming industry?

Other Regional/Country Reports

Indonesia AI Gaming Market

Malaysia AI Gaming Market

KSA AI Gaming Market

APAC AI Gaming Market

SEA AI Gaming Market

Vietnam AI Gaming Market

Other Adjacent Reports

Philippines eSports Market

Germany Virtual Reality Gaming Market

Qatar Augmented Reality Gaming Market

Vietnam Cloud Gaming Market Size, Share, Growth Drivers, Trends, Opportunities & Forecast 2025–2030

Belgium Mobile Gaming Market

Brazil PC Gaming Market

Bahrain Console Gaming Market

UAE Game Development Software Market

Thailand AI Technology Market

Kuwait Digital Entertainment Market

Why Buy From Us?

Refine Robust Result (RRR) Framework
Refine Robust Result (RRR) Framework

What makes us stand out is that our consultants follow Robust, Refine and Result (RRR) methodology. Robust for clear definitions, approaches and sanity checking, Refine for differentiating respondents' facts and opinions, and Result for presenting data with story.

Our Reach Is Unmatched
Our Reach Is Unmatched

We have set a benchmark in the industry by offering our clients with syndicated and customized market research reports featuring coverage of entire market as well as meticulous research and analyst insights.

Shifting the Research Paradigm
Shifting the Research Paradigm

While we don't replace traditional research, we flip the method upside down. Our dual approach of Top Bottom & Bottom Top ensures quality deliverable by not just verifying company fundamentals but also looking at the sector and macroeconomic factors.

More Insights-Better Decisions
More Insights-Better Decisions

With one step in the future, our research team constantly tries to show you the bigger picture. We help with some of the tough questions you may encounter along the way: How is the industry positioned? Best marketing channel? KPI's of competitors? By aligning every element, we help maximize success.

Transparency and Trust
Transparency and Trust

Our report gives you instant access to the answers and sources that other companies might choose to hide. We elaborate each steps of research methodology we have used and showcase you the sample size to earn your trust.

Round the Clock Support
Round the Clock Support

If you need any support, we are here! We pride ourselves on universe strength, data quality, and quick, friendly, and professional service.

Why Clients Choose Us?

400000+
Reports in repository
150+
Consulting projects a year
100+
Analysts
8000+
Client Queries in 2022