Gaming start-ups in Turkey have raised more than $1 billion in funding from 2018 to 2022, significantly outpacing fundraising in the Mena region, a study has shown.
The $1.2 billion attracted by these companies during the five-year period reflects to a compound annual growth rate of 263 per cent, and is substantially higher than the $59 million invested in their counterparts across the Mena region, start-up data platform Magnitt said.
Funding rose sharply in 2021 to hit $505 million – $155 million of which came from mega deals, or those worth $100 million and above. This was substantially higher than the $22 million raised in 2020, the Dubai-based research firm said.
This further rose by more than a quarter to $637 million in 2022, $255 million of which came from mega deals, the study said.
International participation has also increased, with 62 per cent of investors coming from overseas, a figure which, again, outpaced the Mena region, it said.
During that five-year span, the top three investors in Turkey's gaming sector included local venture capital firm Makers Fund and US-based Balderton Capital, which together invested $105 million, followed by UK-based Index Ventures with $99 million.
By comparison, the biggest investments in the Mena region came from the UAE's MSA Novo and Venture Souq, with $5 million and $4 million, respectively, and Saudi Arabia's Vision Ventures with $3 million.
Conversely, it is interesting to note that the funding gap between Turkey and the Mena region magnifies the huge untapped opportunity, particularly in the GCC, for the gaming industry to flourish, said Philip Bahoshy, chief executive of Magnitt.
“Turkey actually has a lower gaming penetration than Saudi Arabia and the UAE. In fact, the latter countries have a much higher gaming penetration than even the global standards,” Mr Bahoshy told The National.
“Overall, while Turkey is the biggest fish in the emerging venture gaming pond, it isn't wise to count Mena out of the game just yet, as the region's gaming industry is rapidly evolving as deal flow and funding continue to grow, supported by relatively stronger macro and currency stability.”
Gaming has become big business globally, gaining traction during the Covid-19 pandemic in 2020, with new technology providing an opportunity to reach a wider audience and develop new titles to cater to consumer demand.
It is a “fundamentally scalable global business” worth about $250 billion, growing at 13.1 per cent and driven by widespread smartphone, internet adoption and improved payment options, data from Magnitt showed.
Revenue in the global gaming market is projected to hit $212.4 billion by 2026, with mobile platforms continuing to lead the growth, market data platform Newzoo said in its August monthly update.
The growth will be underpinned by an increase in the gamer population, which is projected to rise by 6.3 per cent year on year and hit 3.38 billion in 2023, it said.
The Asia-Pacific region will have the biggest share with 1.79 billion, followed by the Middle East and Africa, Europe, Latin America and North America.
“Compared to the global landscape, the room for growth of gaming is immense,” Noor Haider, a senior research associate at Magnitt and author of the report, told The National.
“The Turkey-Mena dynamic can be a bridge between the global and regional gaming landscape offering [a] unique cultural diversity and investment opportunity.”
Total gaming revenue in Turkey was projected at $2.5 billion in 2022, supported by about 42 million digital players, consistent government support and a mobile penetration rate of more than 95 per cent that has helped to offset the impact of inflation and the devaluation of the lira, Magnitt said.
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Events and tours
There are various Mackintosh specific events throughout 2018 – for more details and to see a map of his surviving designs see glasgowmackintosh.com
For walking tours focussing on the Glasgow Style, see the website of the Glasgow School of Art.
More information
For ideas on planning a trip to Scotland, visit www.visitscotland.com
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More on Quran memorisation:
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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Which honey takes your fancy?
Al Ghaf Honey
The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year
Sidr Honey
The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest
Samar Honey
The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments
Children who witnessed blood bath want to help others
Aged just 11, Khulood Al Najjar’s daughter, Nora, bravely attempted to fight off Philip Spence. Her finger was injured when she put her hand in between the claw hammer and her mother’s head.
As a vital witness, she was forced to relive the ordeal by police who needed to identify the attacker and ensure he was found guilty.
Now aged 16, Nora has decided she wants to dedicate her career to helping other victims of crime.
“It was very horrible for her. She saw her mum, dying, just next to her eyes. But now she just wants to go forward,” said Khulood, speaking about how her eldest daughter was dealing with the trauma of the incident five years ago. “She is saying, 'mama, I want to be a lawyer, I want to help people achieve justice'.”
Khulood’s youngest daughter, Fatima, was seven at the time of the attack and attempted to help paramedics responding to the incident.
“Now she wants to be a maxillofacial doctor,” Khulood said. “She said to me ‘it is because a maxillofacial doctor returned your face, mama’. Now she wants to help people see themselves in the mirror again.”
Khulood’s son, Saeed, was nine in 2014 and slept through the attack. While he did not witness the trauma, this made it more difficult for him to understand what had happened. He has ambitions to become an engineer.
Western Region Asia Cup T20 Qualifier
Sun Feb 23 – Thu Feb 27, Al Amerat, Oman
The two finalists advance to the Asia qualifier in Malaysia in August
Group A
Bahrain, Maldives, Oman, Qatar
Group B
UAE, Iran, Kuwait, Saudi Arabia
