Saudi Arabia Gaming Market to Hit $1.64B by 2028
▼ Summary
– MENA video games revenue is projected to grow at a 7.3% CAGR from 2024 to 2027, reaching $6.94 billion by 2027.
– Saudi Arabia leads the region’s gaming growth with $1.19 billion in 2024 revenue and aims to contribute $13.3 billion to GDP by 2030 through its National Gaming and Esports Strategy.
– The global gaming market generated over $187 billion in 2024, with mobile gaming accounting for 49% of revenue and the Asia-Pacific region dominating half of global games revenue.
– Esports is a rapidly growing segment, expected to reach $1.9 billion in revenue by 2025, driven by major events like the Esports World Cup in Riyadh with a $60 million prize pool.
– The industry faces challenges including post-pandemic engagement declines, record layoffs, market saturation, and rising development costs, but remains optimistic due to AI advances and new monetization opportunities.
The gaming industry in Saudi Arabia is on a remarkable upward trajectory, with market revenue projected to surge from $1.19 billion in 2024 to an impressive $1.64 billion by 2028. This expansion, driven by an 8.2 percent compound annual growth rate (CAGR), underscores the Kingdom’s pivotal role in shaping the digital entertainment landscape across the Middle East and North Africa.
A recent industry report highlights robust performance across all gaming platforms. Console gaming leads with an estimated CAGR of 8.27 percent between 2023 and 2028, followed closely by mobile at 7.29 percent and PC gaming at 4.01 percent. This multi-platform strength reflects both diverse consumer preferences and strategic investment in the sector.
Saudi Arabia not only dominates the MENA region in gaming revenue but also fuels regional growth. The broader MENA video games market reached $5.62 billion in 2024 and is expected to grow to $6.94 billion by 2027, advancing at a 7.3 percent CAGR. With over 25.81 million gamers, the Kingdom stands as the region’s undisputed leader.
Central to this success is the National Gaming and Esports Strategy (NGES), a cornerstone of Saudi Vision 2030. The initiative aims to leverage local talent and creativity, with ambitions to contribute $13.3 billion to the national GDP and create 39,000 jobs by 2030. A landmark event in 2024, the inaugural Esports World Cup in Riyadh, showcased this commitment. Featuring 1,500 athletes across 23 events and offering a record-breaking $60 million prize pool, the tournament positioned Saudi Arabia as a global hub for competitive gaming.
Globally, the gaming industry generated over $187 billion in 2024, illustrating its massive scale and continued adaptability. Mobile gaming remains the dominant force, accounting for 49 percent of worldwide revenue, followed by console at 28 percent and PC at 23 percent. The Asia-Pacific region continues to lead in revenue generation, contributing more than half of the global total.
Esports has emerged as the fastest-growing segment, with revenues expected to hit $1.9 billion by 2025 and a global audience surpassing 640 million. Major tournaments like the Esports World Cup and Intel Extreme Masters have redefined fan engagement, attracting young, digitally-native audiences and offering brands unique sponsorship opportunities.
Live services have become essential to sustaining player interest and extending game lifecycles. Through regular updates, limited-time events, and ongoing monetization, developers maintain active communities, particularly within the mobile gaming sector where flexibility is key.
Despite these successes, the industry faces significant challenges. The post-pandemic period saw a decline in casual player engagement and a cooling in venture capital funding. Widespread layoffs affected nearly 15,000 workers in 2024 alone, reflecting a broader market correction after years of rapid expansion.
Market saturation and rising development costs have made it increasingly difficult for new titles to compete with established franchises. In 2023, only 6.5 percent of console and PC playtime was dedicated to newly released games. Studios now must balance innovation with operational efficiency amid tightening margins and shorter audience attention spans.
Nevertheless, reasons for optimism remain. A new generation of studios and original intellectual properties is gaining traction, while advancements in artificial intelligence, user-generated content, and cloud gaming are opening fresh avenues for creativity and revenue. Regulatory changes affecting app stores may also improve profitability for developers.
The emergence of AAA mobile games, the expansion of handheld platforms, and the anticipated release of major titles all hold promise for reinvigorating consumer interest and reshaping industry standards. As Saudi Arabia continues to invest strategically in its gaming ecosystem, it stands poised to not only lead regionally but also influence the global market in the years ahead.
(Source: Economy Middle East)
