Middle East Gaming Market Hits $2.52 Billion as Video Games Outpace Streaming and Music

The Middle East gaming market reached USD 2.52 billion in 2024, surpassing the combined value of video-on-demand streaming and digital music services across Saudi Arabia, the UAE, and Egypt, according to a study by Galal & Karawi Management Consulting (G&K) in collaboration with Orient Planet Group.

Video games accounted for 63.2 per cent of total consumer spending on digital media across the three markets. By comparison, video-on-demand services generated USD 1.16 billion, while digital music platforms recorded USD 306.7 million. The findings were presented at the Media Z event, organised by the Dubai Media Academy in collaboration with the Canadian University Dubai.

Egypt Leads by Volume in the Middle East Gaming Market

Egypt recorded the highest gaming volume in the region, with USD 1.10 billion spent on video games and an annual growth rate of 11.5 per cent. A gaming penetration rate of 91.6 per cent among internet users drives this position. Mobile games account for 76.4 per cent of total gaming usage in the country, reflecting the dominance of smartphone-based play. However, the average revenue per user (ARPU) stands at USD 61.76, considerably lower than Gulf market figures.

Saudi Arabia Records Highest ARPU in the Region

Saudi Arabia holds the highest-value gaming market in the region, with video game spending reaching approximately USD 1 billion. The Kingdom recorded the highest ARPU at USD 393 per user annually. Video games represent about 69 per cent of total consumer spending on digital media in Saudi Arabia. Spending on video-on-demand services totalled approximately USD 310 million, while digital music expenditure reached nearly USD 140 million.

UAE Shows Balanced Digital Spending Across Categories

The UAE spent USD 421 million on video games in 2024, with an ARPU of USD 280, the second highest in the region. The market grew at a consistent rate of 7.3 per cent year over year. Video games represent 57.5 per cent of total digital media spending in the UAE. Notably, the country shows a relative balance across categories, with video-on-demand at USD 246 million and digital music at USD 65.7 million.

“One of the most common misconceptions is that the video games industry can only be seen through the lens of software development. There are clear indications that it is a fully integrated, multidisciplinary field that requires a combination of creative, artistic, marketing and legal capabilities.”

Eng. Asem Galal, Co-Founder, Galal & Karawi Management Consulting

Galal said the sector has created opportunities across design, storytelling, creative production, digital marketing, virtual community management, and intellectual property governance. He added that Arab talent can now compete in global productions from cities such as Cairo, Riyadh, and Dubai without relocating abroad.

Gaming Reshapes the Regional Creative Economy

Dr. Nidal Abou Zaki, Managing Director of Orient Planet Group, said the data points to a structural shift in the region’s digital economy. He noted that game revenues now exceed the combined spending on music and video streaming, which requires a closer look at digital marketing strategies, content creation, and digital community development.

“The Arab world’s youth make the gaming industry more attractive and offers game publishers and content creators a significant competitive advantage on a global scale, as approximately 62.8 per cent of the population is under 35. Quality investment opportunities are still undercapitalised, and the Middle East region’s position as one of the fastest-growing regions in the global gaming industry is further reinforced by the spread of smartphones, high purchasing power in Gulf markets, and the availability of a large player base in Egypt.”

Dr. Nidal Abou Zaki, Managing Director, Orient Planet Group

Muna Busamra, Head of the Dubai Media Academy, said video games have evolved into interactive environments that promote self-expression and virtual community building, particularly for Gen Z and Gen Alpha audiences. She said media institutions must reconsider conventional methods of audience engagement in response to this shift.

The study draws on data from Statista and DataReportal, along with partners including GSMA Intelligence and SimilarWeb. Its findings cover spending estimates for 2024 with annual comparisons based on market data. The report calls for integrated policies and investment strategies to support the gaming sector’s role in the broader creative economy across the region.