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Niko Partners: MENA-3 games market to grow 56% by 2026

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Niko Partners predicts that video games revenue in Saudi Arabia, the UAE and Egypt (MENA-3) will develop 56% from $1.8 billion in 2022 to $2.8 billion in 2026. This represents a CAGR of practically about 10% — indicating a fundamental development opportunity for the build. This forecast is portion of the video games market analysis company’s second annual MENA-3 Games Market File & 5-365 days Forecast.

MENA-3 development

As effectively as to this revenue development, the company estimates the sequence of avid gamers will furthermore develop practically about 30%, from 67.4 million final yr to 87.3 million by 2026. This interprets to a CAGR of about 6%, which manner that users are no longer increasing practically about as lickety-split as spending. In consequence, the company predicts that realistic user spending will receive higher over the next 5 years.

Niko Partners parts to three drivers of this revenue development: mobile gaming, public and non-public sector investments and esports.

Mobile is basically the most major platform by revenue and avid gamers in MENA-3. Accessibility is a key element — there’s a wholesome market for consoles and PCs, but mobile is projected to develop by double digit CAGR over the next 5 years.


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Investments in gaming and esports contain made headlines no longer too prolonged ago. In particular, Saudi Arabia’s Public Funding Fund (PIF) and its subsidiary Savvy Games Community made several excessive profile investments. This involves a $38 billion opinion to receive Saudi Arabia a world hub for gaming.

Esports in MENA-3

Esports back to force traipse and tourism to the nation and toughen the nation’s save within the video games market. Savvy received top occasion organizers ESL Gaming and FACEIT for a total of $1.5 billion final yr and the flagship Gamers8 festival will return in July 2023. Furthermore, rival organizer BLAST has partnered with Abu Dhabi Gaming to host events within the UAE.

Niko Partners expects that by 2026, MENA-3 will be competing with hubs adore Singapore and China.

The company’s files furthermore helps this investment technique into esports. 73% of avid gamers in MENA-3 take with esports in some ability. This involves equivalent to watching esports affirm material, playing esports-focused titles or competing in beginner or professional tournaments. This reveals nice allure for aggressive gaming within the build.

Extra particularly, about two in 5 avid gamers correct by way of the MENA-3 build see esports affirm material (41.7%) or play esports titles (40.7%). An further 12.4% contain competed in beginner or professional esports tournaments themselves. Extra investment and excessive-profile events would possibly perchance well well well incentivize more engagement with esports — a wished development segment for the industry.

Regional Differences and Demographics

MENA-3’s viewers is furthermore using its development capability. While gaming continues to skew heavily male within the MENA-3 build — 67.4% of avid gamers in MENA-3 are male vs. Fifty three.7% of the inhabitants — the viewers is young on realistic.

76% of avid gamers within the MENA-3 build are below the age of 35. Egypt particularly stands out, having a enormously higher percentage of avid gamers below 25 years old when compared with Saudi Arabia and the UAE. Furthermore, Egypt has essentially the most major inhabitants of avid gamers and is the quickest increasing market within the MENA-3

In comparability, Saudi Arabia is basically the most major market by video games revenue and is belief-regarding the gaming powerhouse of the build in step with Niko Partners. Needless to claim, right here is partly fueled by the PIF’s investments. Within the meantime the UAE has the splendid ARPU of the three markets.

These outcomes are in step with Niko’s ongoing insights and prognosis from locally-basically basically based analysts, proprietary market mannequin and 5-yr forecast, a look of 1,126 local avid gamers and interviews of industry mavens from the build. Niko Partners full 100-plus web page file on the MENA-3 build is on hand now.

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