The size of the Middle East and North Africa gaming market is projected to increase 19 per cent to more than $5 billion by 2025, from 2019, according to a new report.
Growth of the market will be fuelled by increased spending from existing gamers, more time spent by users and surging advertisement revenue, according to a report by the consultancy RedSeer.
“Mena gaming is set to exceed unprecedented heights, post the jump seen in 2020-21, owing to the [Covid-19] pandemic and sustained growth is expected across the markets. Localisation of gaming content, Web3 are other key drivers,” RedSeer said.
A growing consumer influx from “underappreciated cohorts”, such as females and Gen X (aged between 41 and 56 years) gamers is adding momentum to the industry, the consultancy said.
The gaming market is booming worldwide after people resorted to at-home entertainment during coronavirus lockdowns over the last two years.
The gaming sector has about three billion participants globally, according to industry data provider Newzoo.
The market's value is forecast to rise to $339.95bn by 2027, from $198.4bn in 2021, according to Mordor Intelligence.
“We see female gaming enthusiasm matching or even eclipsing their male counterparts in many key Mena markets,” RedSeer said.
Saudi Arabia and the UAE — the Arab world’s largest economies — led the industry growth in the region as they experienced the highest penetration of gaming.
In the Emirates, nearly 64 per cent of online adult males and 58 per cent of online females are into digital gaming, while the kingdom has 68 per cent of online male gamers and 69 per cent of online female gamers, according to the report.
The overlap between gaming and Web3 positions the industry as an “ideal beneficiary from the virtual world”, the report said.
Web3 is being touted as the next iteration of the World Wide Web, with blockchain, decentralisation, openness, and greater user utility among its core components.
“Its [Web3’s] meteoric rise and growing investor excitement have brought many of its fundamental components under the microscope. This naturally sheds more light on already thriving gaming segments such as AR/VR [augmented reality / virtual reality] games,” it added.
More than one in five gamers in the Mena region participate in play-to-earn games for their rewarding nature and to boost income, the research revealed.
The gaming market across Saudi Arabia, the UAE and Egypt is expected to be worth $3.14bn by 2025, according to California-based market research and consulting firm Niko Partners.
In February, MBC Group, the biggest broadcaster in Mena, formed a joint venture with Neom, the $500bn high-tech mega-city being built in the kingdom, to set up the first AAA games development studio in the region.
A month earlier, Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, launched a gaming company, Savvy Gaming Group, to strengthen its position in the sector.
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Your UK residence status is assessed using the statutory residence test. While your residence status – ie where you live - is assessed every year, your domicile status is assessed over your lifetime.
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UK residents who have their permanent home ("domicile") outside the UK may not have to pay UK tax on foreign income. For example, they do not pay tax on foreign income or gains if they are less than £2,000 in the tax year and do not transfer that gain to a UK bank account.
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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