MENA has entered the game

If you were to guess the origins of gaming in the Middle East, you might think big names like Nintendo, Sega or Atari were responsible.

But, it was actually a Kuwaiti console you’ve never heard of that kickstarted gaming in the Middle East.

Sakhr was the first, and to date, last Middle Eastern video game console.

It was an Arabic version of the MSX computers developed by Microsoft for Eastern markets, and developed by Mohammad Al-Sharekh’s Sakhr Software Company in the 1980s.

• The company was also responsible for developing the Arabic Keyboard, which is still used today, as well as converting the Basic programming language to Arabic.

Al-Sharekh’s goal was to create Arabic content for what was then new technology.

Sakhr and MSX devices connected to a TV and had a port for a data recorder that played cassettes.

To start a game, you had to rewind the cassette and play it from the beginning.

Now, that’s a throwback!

Sakhr created Arabic games, mostly educational, ranging from English teaching games to trivia, math, and programming.

They also translated a few MSX titles into Arabic.

• Fun fact, it was also one of the first companies to develop an Arabic-language version of the popular video game Tetris, which was released in 1988 and proved a huge hit with Arabic-speaking gamers!

Al-Sharekh built Sakhr into the strongest software and hardware brand in the Arab world.

Undoubtedly, this attracted talented Arab young people into the fields of tech and software development.

And the company experienced tremendous success.

In the late ’80s, selling over 2 million devices and more than 5 million software packages across the Arab world.

One of the primary reasons for this success was that Sakhr computers were used widely beyond gaming at home - they were also utilised by schools to teach kids the Basic programming language, as well as typing.

The Sakhr computer became widespread across the region.

But Sakhr failed to keep up with industry developments and was further hampered by the Gulf War, losing many of its brightest minds when the company had to move from Kuwait to Egypt.

Sakhr hardware was discontinued by the late '90s.

The evolution of Middle Eastern gaming progressed from Sakhr to arcade games, Super Nintendo, Sega Mega Drive, PlayStation, online gaming, mobile gaming, and now esports.

Let there be no doubt, the region has always been a player.

And the Middle East’s gaming industry, a sleeping giant, is now starting to wake up.

🕹️ State of play

Globally, gaming is a big business, surpassing the combined size of the film and music industries.

As of 2024 there are an estimated 3.32 billion active gamers worldwide, a 32% increase over the last seven years.

The MENA region contributes more than its fair share, with a colossal 60% of Middle Easterners identifying as gamers.

• Interestingly, mobile gaming accounts for 65% of all gaming in the MENA region, and games make up to 50% of all app downloads compared to 40% globally.

It’s no wonder the region has seen such a huge surge, becoming the world’s fastest-growing gaming market.

This growth is fuelled by its young population, with over 50% under the age of 25.

And some of the highest internet (90%) and smartphone (97%) penetration rates in the world.

Gaming appeals to a broad demographic, especially young people, creating a larger market.

Its cost-effective accessibility on mobile platforms attracts even more people.

We believe Sakhr’s story shows how the MENA region can become a world leader in the gaming industry.

Sakhr thrived due to its localization for Arabic audiences and versatile use cases.

But declined because of geopolitical instability, talent drain, and failure to keep up with industry developments.

We believe that the region’s gaming industry is positioned for success for three primary reasons:

1. Government commitment

2. Focus on talent

3. Representation and localisation

💰 Government commitment

HRH Mohammed bin Salman is a self-confessed avid gamer, and he’s not alone.

Almost 70% of Saudis play video games, spending more than $1 billion a year on them.

Under his stewardship, Saudi Arabia is determined to become a global giant in the gaming space.

Saudi Arabia's National Gaming and Esports Strategy, launched in 2022, aims to create 39,000 jobs and contribute $13.3 billion to the nation's GDP by 2030.

To this end, the country has committed to investing $38 billion as part of its gaming and esports strategy.

Last night, the much-anticipated Esports World Cup (EWC) launched in Riyadh, featuring the largest prize pool in industry history at over $60 million.

It will run for 8 weeks, with 1,500 elite players competing in 22 competitions across 21 leading games like League of Legends and Counter-Strike II.

The Public Investment Fund (PIF) aims to attract 250 gaming companies and studios.

They’ve already acquired stakes in major companies like Tencent, Nintendo, Activision Blizzard, and Ubisoft.

Led by the Saudi-owned Savvy Gaming Group, investments in gaming have surpassed $15 billion, with notable acquisitions including ESL for $1.05 billion, Face-It for $450 million, and Scopely for $4.9 billion.

And the Kingdom is by no means alone in its gaming push.

Major government buy-in is visible across the region, with dedicated national gaming and esports strategies in Dubai and Jordan, also contributing to the elevation of the regional industry.

🌟 Focus on talent

It goes without saying that to support the long-term growth of the regional gaming sector, developing a high density of talent is crucial.

This can arguably be achieved in to two ways:

1. Attracting and incentivising talent to relocate to the region

2. Fostering education and talent development at the local grassroots level.

For example, DCT Abu Dhabi and AD Gaming are driving job creation and talent development in the e-gaming industry, involving over 20 new companies.

They have established the Unity Centre of Excellence in collaboration with Unity Technologies to support students, professionals, and small businesses in the MENA region's game development industry.

Located in the AD Gaming Hub, it provides in-house support for partners and includes university partnerships offering training, courseware, support, and examinations to upskill and empower students.

Public-private partnerships are also key.

In January, Amazon Saudi Arabia and the UAE, in collaboration with MENATech, launched Amazon University Esports, the first educational esports league for each country.

🌍 Representation + localisation

Arabic is one of the top five languages worldwide, yet only 1% of online content is in Arabic.

That’s a huge gap to fill.

Localisation allows games to be more inclusive to different demographics, regions, and cultures, and is a great tactic for entering highly profitable markets.

Currently, there are over 150 million gamers in MENA, a number that increased by 10% in 2023.

Jordan-based mobile game publisher Tamatem is a prime example.

Launched in 2013 by Hussam Hammo, Tamatem collaborates with international players to convert their content into Arabic.

One of its earliest games, Awad the Delivery King, features a food delivery guy racing around the streets of Amman.

Despite being a cartoon character based in Jordan, the game became the No. 1 app in the app stores of Saudi Arabia and Jordan.

Simply translating the language is no longer sufficient.

Effective localisation also requires respectful cultural idioms, accurate spoken accents, authentic character representation, and gender inclusivity.

There is no shortage of talented local mobile game publishers and developers, such as UMX Studio, Fahy Studios and Starvania Studio.

However, with the opportunity of localisation comes the responsibility to do it right, considering regulatory complexities and cultural sensitivities.

A great example is Kevin Harvey’s Batal Gaming, an Abu Dhabi-based on-demand esports matchmaking platform.

To ensure distributed rewards are acceptable, Harvey and his team obtained a Fatwa certifying Sharia compliance, demonstrating the importance of cultural and regulatory considerations in localisation.

✅ The verdict?

There are so many factors that make us extremely bullish on the future of gaming in MENA: a young population, high tech accessibility, booming government investment, and an ever-growing talent pool.

Maybe a difficult final boss will emerge in time, but we’re backing ourselves 👾

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