The Middle East’s video game industry has emerged as the region’s largest sector for consumer spending on digital media, eclipsing the combined value of video-on-demand and digital music services. A recent study by Galal & Karawi Management Consulting (G&K), in collaboration with Orient Planet Group, reveals that the gaming market in Saudi Arabia, the UAE, and Egypt reached a staggering USD 2.52 billion in 2024, signaling a profound shift in regional digital consumption habits.
A New Era of Digital Consumption
According to the report, consumer spending on video games accounted for 63.2 percent of all digital media expenditure across the three key markets. This figure significantly overshadows the USD 1.16 billion spent on video-on-demand streaming and the USD 306.7 million on music platforms. This transformation is attributed to the widespread adoption of smartphones, the growth of an interactive gaming culture, and rising in-game spending.
Eng. Asem Galal, Co-Founder of Galal & Karawi Management Consulting, noted that the industry has evolved from a niche entertainment activity into a comprehensive economic force. “The study’s results clearly show that the video games sector has become one of the key drivers of the content economy in the region,” he stated.
KSA Commands Market Value While Egypt Leads in Volume
The study highlights distinct characteristics within the region’s leading markets. Saudi Arabia stands as the highest-value gaming market, with consumer spending hitting approximately USD 1 billion. The Kingdom also boasts the highest average revenue per user (ARPU) in the region at USD 393 annually, with gaming comprising 69 percent of its total digital media spend.
Egypt, with its large population and a 91.6 percent gaming penetration rate among internet users, is the largest market by overall volume, with USD 1.10 billion spent on video games. However, its ARPU is significantly lower at USD 61.76.
Meanwhile, the UAE presents a mature, high-income digital market with USD 421 million spent on video games. It holds the region’s second-highest ARPU at USD 280 and demonstrates consistent year-over-year growth of 7.3 percent.
Beyond Development A Multidisciplinary Ecosystem
The report dispels the misconception that the gaming industry is solely about software development, emphasizing its role as an integrated ecosystem creating diverse job opportunities.
“There are clear indications that it is a fully integrated, multidisciplinary ecosystem that requires a combination of creative, artistic, marketing and legal capabilities,” explained Galal. He pointed to roles such as character designers, storytellers, composers, digital marketing specialists, and intellectual property experts as attractive opportunities for Arab youth.
Dr. Nidal Abou Zaki, Managing Director of Orient Planet Group, reinforced this view, highlighting the strategic implications. “Video games have become a significant media and economic platform, attracting increased investments and reshaping the way brands engage with their consumers, especially the youth,” he said. Dr. Abou Zaki added that the region’s young demographic, with approximately 62.8 percent of the population under 35, gives the MENA gaming industry a significant global competitive advantage.
About Galal & Karawi Management Consulting
Galal & Karawi (G&K) is a management consulting firm specializing in public affairs, strategic communications, and market entry strategies. The firm provides advisory services to help organizations navigate complex regulatory environments and achieve their business objectives in the Middle East and beyond.
Source: entarabi
