“Gotta Catch ’Em All”: Opportunities in the GCC’s Booming Computer Games Market

The computer games market in Saudi Arabia and the broader GCC region is experiencing unprecedented growth, powered by significant investments, a culture in transition, and forward-thinking government initiatives.

Perhaps the most recent example of this is the acquisition of Niantic, creator of the global mobile gaming phenomenon Pokémon Go, for USD3.5 billion, by Savvy, a subsidiary of the Saudi Public Investment Fund (PIF). This acquisition is a clear mark of intent by the Kingdom, who have in recent years demonstrated a real commitment to diversifying its economy away from being solely reliant on petrochemicals. This move mirrors similar recent investments by the Kingdom in sport.  Back in 2023, KSA spent over USD700 million via the Saudi Pro League, bringing in names such as Cristiano Ronaldo and Karim Benzema, in an attempt to revolutionize its sporting culture and secure a place on the global footballing map. Further large-scale acquisitions in the field of golf followed. 

The trend is clear: Saudi Arabia has come to stay (and to play), and PIF’s acquisition of Niantic is only the beginning.

In this article, we highlight the swift rise of the computer games market in Saudi Arabia and the wider GCC, spotlighting key investments and initiatives fueling this growth. We also consider the unique opportunities and challenges developers and publishers may encounter across intellectual property protection, corporate law, regulatory compliance, and dispute resolution. Finally, we look at how gaming companies can leverage the region’s strategic business climate and infrastructure to secure a strong foothold in the GCC.

 

The Expansion of the Computer Games Market in Saudi Arabia

Saudi Arabia is aggressively positioning itself as a global video gaming hub. This is in large part aided by its young population, a large percentage of which are seasoned gamers. Recent figures suggest that the Kingdom is the 19th largest gaming market globally, with between 67% and 89% of its population engaged in gaming. In 2024, PIF kickstarted this growth with a USD38 billion investment into the Savvy Games Company, its gaming focused subsidiary, which has flexed its muscle in the market with the acquisition of Niantic (with further acquisitions in all facets of the gaming industry to come). Besides its large scale M&A, it is also committed to growing and nurturing local gaming talent.

The sector generated USD1.13 billion in revenue in 2023 and is expected to rise to USD1.36 billion by 2026, registering an approximate 6% annual growth.

 

E-sports as a Catalyst

Saudi Arabia is also making a name for itself in e-sports, hosting top-tier tournaments like the Esports World Cup, which drew over 500 million online viewers and sold upwards of 175,000 tickets. This large-scale success not only demonstrates the Kingdom’s capacity to host international gaming events but also highlights the broader e-sports eco-system growing around PC and console titles.

 

The Wider GCC’s Investment in the Games Industry

Beyond Saudi Arabia, Abu Dhabi is emerging as another major player in the video gaming world. The Abu Dhabi Investment Office (ADIO) recently teamed up with NIP Group to invest USD40 million in the gaming and e-sports sector. This partnership aims to:

• Establish the NIP Group’s Global Headquarters in Abu Dhabi.
• Enhance local gaming infrastructure for PC and console titles.
• Train and support local talent by fostering innovation in computer game development.
• Attract international developers and publishers, further establishing the UAE as a leading regional hub for computer games.
• Developing a gaming ecosystem by levering and enhancing Abu Dhabi’s position as a leading e-sports destination.

Up the road, Dubai is also well established in this space, and draws large crowds on an annual basis for its Dubai Esports and Gaming Festival, and operates the Dubai Programme for Gaming at Government Level, which allows individuals to apply for a long term Gaming Visa under the Cultural Visa Programme. The Gaming Visa is aimed at developers, content creators, specialists, and eSport players alike, and a successful applicant can enjoy a 10-year residency in the UAE under that visa.

However, such initiatives are not limited to the UAE and Saudi Arabia. In Qatar, we note numerous Post-World Cup initiatives continue to bolster tech infrastructure, offering a promising arena for PC and console developers. In Bahrain, ongoing modernization efforts and tech-friendly policies support new market entrants and expansion strategies, while in Oman, there is growing interest in digital entertainment and e-sports fosters additional opportunities for developers targeting Arabic-speaking audiences.

 

Key Considerations for Video Gaming Companies in the GCC

While the GCC represents a significant area of opportunity for those in the video-gaming and esports industry, current and potential participants will need to take into account the various legal, cultural, and social differences that are unique to this region of the world, so that they are best positioned to succeed in the market.

While it is impractical to cover off every potential challenge video gaming companies may encounter in the GCC, and the circumstances will be unique in every case, in our experience there are four key themes that should be at the forefront of any entity looking to participate in the GCC Market:

Intellectual Property Protection	Mergers & Acquisitions
From PC and console exclusives to mobile game mechanics and in-game assets, protecting IP is paramount for preventing unauthorized use or cloning. As the GCC’s computer games market expands, companies must safeguard everything from copyrighted art and coding to patented gameplay features.	Substantial funding and consolidation in the GCC’s computer games sector has given rise to a high volume of M&A deals. Whether acquiring a local studio with a popular new game or merging with an international publisher to expand reach, M&A activity can accelerate market entry and innovation.
Regulatory Compliance	Dispute Resolution
Computer games inherently involve online connectivity, data collection and security, and user-generated content – all subject to local and regional GCC regulations. Non-compliance can lead to legal penalties and long-term reputational damage.	As cross-border collaborations, publishing deals, and licensing agreements increase, so do potential conflicts – ranging from royalty disputes to disagreements over game distribution rights. Thinking ahead and planning for the worst can go a long way to reducing the risk profile of any potential investment.

 

Saudi Arabia and the broader GCC region are fast becoming pivotal markets for the computer games industry, driven by landmark investments, visionary government policies, and a rising e-sports culture. Both pre-existing and new entrants to the market should be careful navigating the complex issues that can arise in order to thrive in this dynamic ecosystem. As Saudi Arabia, Abu Dhabi, and neighboring GCC states continue to pour resources into game development and hosting world-class gaming events, the window of opportunity for developers and publishers will only widen – making it an ideal time to “catch ’em all” in the GCC’s booming games market.

DLA Piper has offices across the GCC and is well-positioned to assist clients with all their legal needs in this burgeoning gaming industry. Please contact Andrew Mackenzie, Sophie Bradstreet, Ross Wilson and Hassan Salman if you have any questions.