Gaming has taken off in the Middle East in recent years, opening the door to exciting opportunities for development companies and stakeholders.
This point is perfectly highlighted by the recent launch of a strategic partnership between British game developers Kwalee and Saudi Arabian entities Fahy Studios and Neom.
However, these companies must be willing to broaden their horizons beyond the gaming sector if they are to successfully capitalize on the move.
Diversifying Beyond Video Games & Regulatory Hurdles
Many traditional gaming companies face a global reality – they must diversify their revenue streams to avoid running into trouble.
At the beginning of the year, numerous video game companies announced plans to lay off thousands of workers. Microsoft bought Activation Blizzard and laid off 1,900 workers. Sony Interactive decided to cut around 900 jobs, while Electronic Arts reduced its workforce by 670.
A slowdown in the global gaming boom was cited as the primary reason. This has forced companies within the industry to diversify their operations.
Competition within the industry is fierce. Established companies are fighting for market share while indie developers try to manoeuvre their way in.
The Middle East also presents unique challenges of its own. Cultural sensitivity and government regulations make for a complicated gaming landscape.
This is where iGaming can emerge as a game-changer. Online gambling is a multi-billion-dollar global industry that developers and the Middle East must tap into.
Legalities around iGaming are traditionally stringent across the Gulf States. Governments in the region have often implemented restrictive regulations regarding content deemed inappropriate, including violence, gambling, and themes that contradict cultural norms.
Kuwait is a prime example. The country has completely banned all forms of gambling, which makes iGaming development a non-starter under the current climate.
However, this stance has forced people in Kuwait to place bets via offshore online betting platforms. The government needs to heed its people’s call and allow gambling platforms into the picture.
The people want easily accessible real money online casinos in Kuwait, but the strict laws make it difficult for them to fuel their passion. Governments in the region must start to recognize the economic potential of the iGaming industry to generate tax revenues.
Some Middle Eastern countries have begun exploring its potential. The United Arab Emirates (UAE) recently legalized some forms of online gambling within specific free zones.
For development companies such as Fahy Studios, iGaming offers a lucrative avenue. They can leverage their design and development expertise to create products tailored to the needs and preferences of the Middle Eastern market.
This can involve incorporating cultural themes or features in online casinos that cater to the region’s internet-savvy population.
The partnership between Kwalee, Fahy Studios, and Neom can be crucial in navigating these regulatory challenges.
By working with regional authorities, they can advocate for regulations that foster innovation and growth while upholding cultural sensitivity.
A Strategic Alliance to Boost Development & Innovation
The partnership between Kwalee, Fahy Studios and Neom is a significant step in the right direction for the Middle Eastern gaming industry.
Fahy is a Saudi Arabian studio with fresh ideas and offers local market and cultural understanding. Kwalee are seasoned developers with an excellent track record, bringing expertise and resources.
Neom, a futuristic megacity project greenlighted by Crown Prince Mohammad bin Salman in 2017, provides the infrastructure and technological tools necessary to foster innovation.
All parties bring something unique to the table, and this collaboration can have a massive effect on the region’s gaming scene.
Kwalee’s experience can guide Fahy Studios in creating high-quality, competitive games that resonate with a global audience. This will likely involve adopting industry best practices, incorporating cutting-edge and implementing effective marketing strategies.
With Neom’s backing, the partnership can explore the potential of contemporary technologies such as artificial intelligence (AI), virtual reality (AR) and augmented reality (AR) in gaming. These technologies will help develop immersive and interactive gaming experiences that cater to the tech-savvy youth of the region.
However, understanding cultural nuance is crucial for success in the Middle East. The partnership can leverage Fahy’s local knowledge to develop games that resonate with domestic players.
