
How the KSA-UAE Gaming Race Opens Doors for Chinese Collaboration
March 25, 2025
The Kingdom of Saudi Arabia (KSA) and the United Arab Emirates (UAE) are leading the Gulf region’s rise as one of the most dynamic global gaming markets. In 2023, the two countries accounted for 80% of the region’s US$2.24 billion in player spending, with KSA alone boasting 49.5% of revenue and 61.7% of the gamers. Demand for video games continues to grow, driven by a young, tech-savvy demographic and a 99% internet penetration rate. With shared ambitions to diversify their oil-dependent economies and become top global gaming hubs, both nations are vying to attract talent, investments and innovation.
China—the top trade partner of both economies and the world’s leading gaming powerhouse—is poised to capitalize on this momentum.
China recognizes the gaming industry as one of the main drivers of cultural exports and continues to promote its innovation and international expansion. Chinese games have succeeded in the Middle East, entering the market in 2009 and capturing over 40% of market share in 2022. In 2024, overseas sales of Chinese games rose for the first time in three years, while KSA saw the fruit of its recent investments and partnership as it entered the top 10 foreign markets for Chinese games. As KSA and the UAE race to build world-class digital ecosystems, gaming is a promising frontier for trade and cooperation with Chinese companies.
With 60% of the population under 30 and 67% being gamers, KSA recognizes the substantial growth prospects of its gaming and esports sector. As a cornerstone of the government’s Vision 2030 agenda, the National Gaming and Esports Strategy aims for a US$13.3 billion GDP contribution, 39,000 jobs, and 250 gaming companies by 2030. Seen as central to economic diversification and youth engagement, gaming has become a personal project for Crown Prince Mohammed bin Salman. The Kingdom made headlines with flagship events last year, launching the Esports World Cup with a record US$60 million prize pool and securing the inaugural Olympic Esports Games via a 12-year partnership with the International Olympic Committee.
Public-private partnerships are central to advancing its gaming blueprint. With US$38 billion from the Public Investment Fund (PIF) to develop the sector, Savvy Games Group vigorously invested in international companies, acquiring a US$265 million stake in a leading Chinese tournament operator in 2023. Saudi Media Minister Salman bin Yousef Al-Dosari also signed agreements to strengthen ties in esports during his visit to China last November. Currently, 37 of the top 100 profitable gaming companies in KSA are Chinese, reflecting their strong foothold in the market.
KSA’s giga-projects amplify opportunities for esports infrastructure and technology development. Qiddiya City, the Kingdom’s entertainment and tourism megaproject, is developing the world’s first mixed-use gaming and esports district, set to host elite esports clubs and attract over 30 leading game companies. NEOM, another PIF-backed megacity, is building a US$5 billion AI data center and a global hub for immersive gaming experiences with game development studios, motion capture zones and incubation zones. These projects open doors for Chinese firms specializing in gaming technologies.
The UAE, particularly Dubai and Abu Dhabi, has a well-established reputation as a global business hub and a gateway to the regional market. With 75% of its 10 million population as gamers, the UAE led the Middle East market for Chinese games in 2022. Freezones like Dubai Internet City, DMCC Gaming Centre and Abu Dhabi’s twoFour54 offer tax exemptions, wage subsidies and world-class infrastructure, creating a low-risk entry point for expanding into the region.
The UAE’s long-term gaming plans share KSA’s ambitions. The Dubai Program for Gaming 2033 aims to position Dubai as a top 10 global gaming city, generating 30,000 jobs and contributing US$1 billion to GDP. Keeping pace with KSA’s project launches, Abu Dhabi is building the world’s first Esports Island. This ambitious US$1 billion mixed-use hub with digital technology workspaces, training complexes and a multi-format arena falls under its tourism strategy and fits into the Abu Dhabi Vision 2030.
Series events like the Games of the Future and Dubai Esports and Gaming Festival allow Chinese companies to explore B2B partnerships in esports. Moreover, the UAE’s higher adoption of PC/console gaming, coupled with its second-highest augmented reality (AR) and virtual reality (VR) penetration rate in MENA, presents opportunities for Chinese companies to tap into its high-tech gaming gadget market.
Forward-thinking policies strengthen the UAE’s position in talent and digital innovation. The 10-year Dubai Golden Visa for gamers attracts global gaming professionals, while the Creators HQ aims to onboard 10,000 influencers to boost digital media. Abu Dhabi Gaming, a government-led initiative launched in 2021, dedicates effort to talent and game development. Hosting the largest concentration of gaming companies in MENA, projects like AD Gaming Hub showcase the latest gaming technologies and facilitate access to partners across the gaming industry.
While Chinese companies can leverage both markets to establish their regional presence, success in the Gulf region hinges on localization and navigating regulatory compliance:
Localization is key. Chinese gaming companies have a decade of experience in localization and adaptation to cultural and religious norms. Continued investment in Arabic-language content and regional storytelling is essential for enhanced engagement. Partnerships in local technological innovation can also strengthen market positioning, particularly in esports and cloud gaming. Aligning with national localization agendas can also improve regulatory standing and strengthen ties.
Prepare for data localization. Both nations are strengthening data localization requirements, impacting cloud gaming and online services. KSA mandates that certain data be stored locally, necessitating partnerships with regional cloud providers.
Understand local regulations. KSA enforces stricter content policies concerning in-game content, monetization and age ratings. Its Vision 2030 has pushed reforms to lower entry barriers and incentivize partnerships, including streamlined licensing processes and fast-track registration. However, it has strict requirements on local hires compared to the UAE, which has more flexibility in workforce localization. Companies must also determine their market entry strategy, where KSA favors JVs with local firms while the UAE offers more flexibility for wholly owned subsidiaries.
Balance engagement efforts. The KSA and UAE governments are highly sensitive to foreign firms deepening ties in one market over the other, often leading to informal barriers or heightened scrutiny. Officials may push back, questioning unequal investments and pressuring firms to expand commitments. Balanced engagement with both governments is key to maintaining strong relationships, mitigating risks and avoiding potential roadblocks.
Choosing the right market depends on a company‘s objectives, risk appetite and long-term strategy. Engaging public policy experts is essential to ensure compliance, maximize opportunities and build strong government relationships.