Saudi Arabia Gaming Market Leads Region

The Saudi Arabia gaming market has emerged as the region’s most valuable digital gaming sector, with annual spending reaching approximately USD 1 billion and the highest average revenue per user (ARPU) in the Middle East. This milestone underscores the Kingdom’s position as a powerhouse in the rapidly expanding digital entertainment landscape.

According to a recent study conducted by Galal & Karawi Management Consulting (G&K) in collaboration with Orient Planet Group, the Middle East’s video game industry has become one of the region’s largest sectors for consumer expenditure on digital media. The gaming sector has surpassed the combined value of video-on-demand streaming and digital music services, showcasing a significant transition in regional digital consumption trends.

Regional Gaming Market Reaches $2.52 Billion

Total spending on video games across Saudi Arabia, the UAE, and Egypt reached almost USD 2.52 billion in 2024, compared to USD 1.16 billion on video-on-demand streaming and USD 306.7 million on music platforms. Video games accounted for 63.2 percent of total spending on digital media across these three key markets, demonstrating the sector’s dominance in the digital entertainment ecosystem.

The study, based on data from accredited sources including Statista, DataReportal, GSMA Intelligence, and SimilarWeb, focused on trends pertaining to video games, video-on-demand, and digital music in the region’s three largest markets.

Saudi Arabia Gaming Market Leads in Value and ARPU

The Kingdom stands out with the highest-value gaming market in the Arab region, where video games spending accounts for approximately 69 percent of total consumer expenditure on digital media. With an annual expense of USD 393 per user, Saudi Arabia recorded the highest ARPU in the region. The Kingdom’s spending on video-on-demand services totalled approximately USD 310 million, while expenditure on digital music reached nearly USD 140 million.

Egypt emerged as the largest market by overall volume, with USD 1.10 billion spent on video games, driven by its large population and high gaming penetration rate of 91.6 percent among internet users. However, the ARPU is significantly lower at just USD 61.76 compared to Gulf markets. The UAE’s digital market recorded USD 421 million spent on video games, with an ARPU of USD 280, the second highest in the region.

Transformation in Digital Consumer Behaviour

The study’s findings reveal that the video games sector has transformed from a minor entertainment activity into a comprehensive economic ecosystem driving digital consumer behaviour. Key drivers behind this transformation include the widespread adoption of smartphones, growth of interactive gaming culture, and rising in-game spending.

“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. It has created an integrated ecosystem of opportunities in design, storytelling, creative production and digital marketing, along with virtual community management and intellectual property governance.”
Eng. Asem Galal, Co-Founder of Galal & Karawi Management Consulting

Galal emphasized that the industry is a fully integrated, multidisciplinary ecosystem requiring a combination of creative, artistic, marketing, and legal capabilities. Character designers, illustrators, storytellers, composers, voice actors, digital marketing specialists, and intellectual property experts represent just a few of the many specializations that have become attractive job opportunities in the regional gaming market.

Strategic Implications for the Digital Economy

“These statistics signify a strategic shift in the region’s digital economy structure. 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.”
Dr. Nidal Abou Zaki, Managing Director of Orient Planet Group

Dr. Abou Zaki noted that game revenues exceeding the combined amount spent on music and video streaming necessitates a comprehensive scrutiny of digital marketing strategies, content creation, and development of digital communities. The Arab world’s young population, with approximately 62.8 percent under 35 years old, makes the gaming industry particularly attractive and offers game publishers and content creators a significant competitive advantage on a global scale.

The study highlights the need for integrated policies and strategies to strengthen the sector’s role in supporting the creative economy and create new investment opportunities that capitalize on the region’s rapidly accelerating digital and behavioural shifts. With major markets constantly evolving and gaming integrating across media, entertainment, and marketing ecosystems, the Middle East is positioned as one of the fastest-growing regions in the global gaming industry.