Saudi Arabia Online Gaming Market Research Report: Forecast (2022-2027)

Market Definition

Online Games are virtually-integrated video games on PCs, mobile phones, gaming consoles, etc., played over the internet. Rising internet penetration in the country and imposition of nationwide lockdown during 2020 are the key factors contributing to the increased demand for online games. Furthermore, burgeoning government support for gamers in line with Saudi Vision 2030 to help boost the online gaming industry as a key contributor to the nation’s economy is another crucial aspect driving the demand for online games.

Market Insights

The Saudi Arabia Online Gaming Market is projected to grow at a CAGR of around 7.85% during the forecast period, i.e., 2022-27. The growth of the market imputes primarily to the increasing number of affordable internet plans, easy access to online games, and large-scale development of unique & multiplayer games, such as PUBG (PlayerUnknown's Battlegrounds), etc. 

Since its inception, the federation has organized multiple world-class national & international gaming tournaments and events to attract investments from both local & private-sector corporations while actively working with international gaming developers for opportunities in Saudi Arabia.

Key Trends in the Market

• Introduction of Digital Games in Tertiary Education in Saudi Arabia

The Educational institutions of Saudi Arabia are increasingly adopting different forms of computer games for children to deliver learning content in the form of puzzle games, GK quiz games, etc. This development aims to offer alternative educational games to develop their learning & social skills, inspired by their culture, history, and language.

Impact of Covid-19 on the Saudi Arabia Online Gaming Market

The Covid-19 pandemic in 2020 positively impacted the revenue generation for the Saudi Arabia Online Gaming Market, primarily due to lockdown restrictions & stringent stay-at-home policies that derived the young population toward discovering some indoor entertainment activities like online video games. Moreover, investments in internet infrastructure by the Saudi government led to a rise in internet penetration in the country that contributed to the revenue generation of online streaming platforms due to increased demand for gaming tutorials. Telecom operators & streaming platforms reported a significant increase in gaming traffic in 2020. For instance:

• In 2020, STC, a Saudi Arabian telecom company, reported a 300% increase in user engagement in online gaming & streaming platforms in the country.
• Additionally, Twitch, an online streaming platform, recorded a surge in customer engagement during 2020, with top channels, including Saudi Arabia’s ixxYjYxxi, which recorded 210,257 views in 44 hours of streaming during April 2020, and RakanooLive, with more than 561,000 hours of watch time.