https://arab.news/rjcnv
For nearly a decade, the UAE has been one of the fastest-growing gaming markets in the world. The overall gaming market in the country was valued at more than $420 million in 2023, with an average compound annual growth rate of 8.94 percent. The government has made a significant push toward building an expansive gaming and electronic sports ecosystem. And this has been recognized by industry leaders, as major studios like Ubisoft and Tencent have established their regional headquarters in the country.
There is also an increasing local demand for gaming in the UAE, which is notably higher than other markets in the Middle East and North Africa region. A 2022 survey showed that nine out of 10 adults in the UAE are gamers, with 23 percent of them playing at least 11 hours a week. So, gaming has become a part of the digital culture in the country and the government has recognized this demand to create a comprehensive ecosystem.
With the traditional gaming industry now shifting to Web3, the UAE is also becoming a fast mover by embracing the developing blockchain gaming sector. After a brief period of decline due to innovative and regulatory challenges, Web3 gaming has seen a revival in user engagement this year. In the third quarter, the sector reached 4.4 million daily active wallets. In the same period, blockchain games attracted more than $110 million in funding.
With this revival, the UAE has positioned itself as a global leader in driving the blockchain gaming sector. Proactive policies and strategic investments are transforming the country into a central hub for Web3 gaming projects. The sector is expected to hit $1 billion in the UAE alone by 2025.
Proactive policies and strategic investments are transforming the country into a central hub for Web3 gaming projects
Ilman Shazhaev
Recent studies place the UAE among the top 15 nations in the world that are actively driving the Web3 gaming sector, alongside the likes of China and Vietnam. This reflects the UAE’s aggressive push to integrate blockchain into gaming. The UAE views Web3 as a strategic asset — an avenue to redefine how games are developed, played and monetized.
Last year, the Dubai Program for Gaming 2033 announced a detailed roadmap designed to attract global players and local talent. It involved major gaming studios such as Ubisoft, which had previously set up a regional development hub in Abu Dhabi. Similarly, projects like Sandbox have found a natural home in Dubai, where the regulatory environment actively encourages frictionless developments rather than stifling them.
So, there is strong support in the UAE from leading studios that are integrating into Web3 gaming. Twenty years ago, we saw Silicon Valley provide a pioneering hub for commercialized technologies, which influenced hundreds of startups. The UAE is doing the same for the blockchain industry and, more specifically, the Web3 gaming industry.
Although other regions like Southeast Asia and Europe have also embraced the blockchain gaming industry, the UAE has been far ahead in establishing comprehensive policies to attract new projects and make the industry a part of its digital economy. It is not necessarily trying to establish a market for Web3 gaming, rather it is building an ecosystem. The UAE wants to be seen as a central point of all things Web3. This is evident through recent initiatives like Dubai’s DMCC Gaming Centre and Abu Dhabi’s AD Gaming program.
The DMCC Gaming Centre in Dubai is a high-tech gaming development facility that houses more than 100 gaming businesses. The center provides easy access to comprehensive resources for these businesses, including funding opportunities, incubators, commercial space and highly skilled talent pools.
These are dynamic ecosystems that bring together developers, investors and thought leaders. Animoca Brands, a heavyweight in the blockchain gaming space, has actively engaged with Dubai’s ecosystem, further legitimizing its global aspirations.
The AD Gaming initiative goes a step further by emphasizing sustainability. It is building a self-sustaining ecosystem that attracts and retains talent. Local startups benefit from mentorship, funding and access to a global network, while international developers find a welcoming environment to test and scale their projects.
AD Gaming has also partnered with Unity Technologies, the gaming engine behind every AAA title (high-budget, high-profile games that are typically produced and distributed by large, well-known publishers), to create a development program that will help students in artificial intelligence, virtual reality and game development to gain industry experience.
On the financial side, the UAE’s regulatory and fiscal policies have made it a magnet for venture capital. The absence of capital gains taxes and the clear legal framework for blockchain startups make it an attractive destination for investors looking to maximize returns while minimizing risks. Sequoia Capital and other global investment giants have already staked claims in UAE-based blockchain companies, showing their strong confidence in the country’s potential.
The UAE is not necessarily trying to establish a market for Web3 gaming, rather it is building an ecosystem
Ilman Shazhaev
Polygon is also a case in point. As one of the leading scalability platforms in the blockchain space, it has benefited from substantial investments by MENA-based funds. The involvement of these institutional investors is helping to accelerate development cycles, bringing products to market faster and more efficiently.
Despite the developments in this sector, the road ahead is not without obstacles. Scalability remains a critical issue for blockchain gaming platforms. As user bases grow, so does the demand for high-speed, low-cost transactions.
The UAE has a strong tech infrastructure and regulatory environment for blockchain projects, but it needs continuous upgrades to handle this evolving space. These challenges are not unique to the UAE. What sets it apart is its proactive approach to mitigation. The government’s clear regulatory framework offers stability, which is crucial in a sector prone to rapid shifts.
It is also important to note that the UAE’s ambitions extend beyond gaming. The country’s broader economic transformation is focused on embracing blockchain technology as a whole in every potential sector. The lessons learned from building a Web3 gaming ecosystem will likely influence other sectors, from finance to real estate. This cross-industry applicability makes the UAE’s investment in blockchain gaming a strategic move with far-reaching implications.
In the next few years, we can expect to see more groundbreaking projects coming out of the UAE. Whether it is through homegrown startups or global companies establishing a regional foothold, the UAE’s influence on Web3 gaming will only grow.
The UAE’s Web3 gaming ambitions are audacious. However, they are grounded in strategy and supported by an ecosystem designed for success. From government initiatives to venture capital investments, every element of this ecosystem works in harmony to foster growth and innovation. The UAE’s ability to attract top talent, secure substantial investments and provide a stable regulatory environment has already positioned it as a leader in Web3 gaming. While challenges like scalability and market volatility will always remain, the government’s proactive approach is actively addressing these hurdles with practical solutions.
- Ilman Shazhaev is the founder and CEO of Farcana, a Bitcoin shooter game.