At the AIBC Eurasia conference taking place in Dubai today, industry leaders gathered to discuss the evolving landscape of esports in the Middle East, particularly in the United Arab Emirates (UAE) and Saudi Arabia. The panel included Paul Dawalibi, CEO of Holodeck Ventures; Edward Konrat, a veteran in the esports industry currently with Gen.G Esports; Artem Merkulov, COO of True Gamers; and Pavel Dergachev, co-founder of 4H Agency. The discussion, moderated by Wadih Al Sayad, Co founder and CEO of Al Musaed, focused on the current state of esports in the region, its rapid development, and the challenges that remain.
The evolution of Esports in the Middle East
Over the past decade, esports in the region has transitioned from small tournaments in internet cafes to large-scale competitions backed by international game publishers. Edward Konrat highlighted that five years ago, esports in the UAE and Saudi Arabia was confined to local tournaments with little financial or structural support. However, the arrival of major game publishers such as Riot Games and Tencent has significantly contributed to the establishment of official regional leagues, salaries for professional players, and the overall professionalization of the industry.
Saudi Arabia has particularly taken center stage, hosting major events like the Esports World Cup and the Esports Olympic Games. The country has invested heavily in esports, with government-backed initiatives fueling its rapid growth. Team Falcons, a Saudi-based esports team, has become a dominant force in multiple gaming titles.
Is Esports truly thriving?
Paul challenged the notion that esports in the region is “thriving.” He argued that while Saudi Arabia is pouring money into the industry, the long-term sustainability of this investment remains uncertain.
“Thriving implies self-sufficiency, but the reality is that esports here is heavily reliant on government funding,” he stated. Paul also noted that the UAE lacks a cohesive esports strategy beyond isolated investments from AD Gaming and the Dubai Esports Festival, which he characterized as more of a gaming event than an esports-focused initiative.
While there has been undeniable progress, concerns remain regarding whether these investments will lead to an organically sustainable ecosystem. Paul warned against a future where the UAE might feel compelled to match Saudi Arabia’s investments, potentially leading to wasted resources without sustainable returns.
“ I think we have to admit that as a region, we’re underperforming both on esports. We’re not thriving yet. We are underperforming relative to the amount of hype, relative to the expectations and relative to the dollars and resources being put in. I think if we start from a place of honesty, we can address what those issues are.”
Comparing Saudi Arabia and the UAE
The panelists discussed the differing approaches between Saudi Arabia and the UAE in fostering esports growth. Saudi Arabia’s government has taken an aggressive investment approach, funding large-scale events and esports teams. This has created job opportunities and a structured ecosystem with requirements for local player participation.
Edward pointed out that Saudi’s strategy includes the establishment of domestic esports leagues with mandated local player involvement, ensuring that the growth of the industry benefits Saudi talent.
On the other hand, the UAE’s strength lies in its business-friendly environment. Dubai has become a hub for international esports tournaments, offering favorable visa policies and logistical advantages. Several major Counter-Strike and Dota 2 events have been hosted in Dubai, leveraging its geographical accessibility.
Key metrics of success
A core discussion point was how to define success in esports. While audience engagement and revenue generation are traditional indicators, moderator Wadih suggested that employment opportunities and the number of hosted events should also be considered.
Edward emphasized that Saudi Arabia’s investment has already led to an increase in local job opportunities, with organizations like Vanguard, the Esports Saudi Federation, and Team Falcons hiring both local and international talent. He also pointed out that Saudi’s structured esports ecosystem is producing regional players who are making an impact in tier-one international competitions.
“ I think that there is a lot of immediate return from the investments that have been happening in Saudi Arabia. There are better results in terms of the number of the regionaI players reaching tier one esports events globally, and this has been growing over the past few years.”
Despite the positive growth, small and medium-sized enterprises (SMEs) in the industry face challenges. While government-backed entities dominate large-scale projects, smaller businesses struggle to secure their place in the ecosystem.
“ It’s definitely extremely challenging for small and medium scale businesses, especially in the UAE and in Saudi, because you might find it challenging to compete with the top companies that are backed by government funds,” he went on to caution.
The best shot of UAE for esports is that it is very well geographically based and very flexible on visas and other legal requirements, which allows for international esports IPs to host their tournaments in the UEE, he concludes.
Artem shared his experience of entering the UAE market, emphasizing the opportunities that exist despite the challenges. The UAE’s role as a regional hub allows for business growth, but further government support for smaller organizations could encourage a more diverse and sustainable industry.
“Investments should be spread around local communities and small events. The audience in the UAE is very fragmented – it’s very hard to get people together in one place. The stadiums are not full compared to EU countries. This is the biggest issue.”
Future Outlook: Sustainability and long-term growth
The panel at AIBC Eurasia provided an in-depth look into the state of esports in the Middle East, acknowledging the progress made while addressing the challenges ahead. Saudi Arabia’s significant investments have positioned it as a leader in regional esports, while the UAE’s business-friendly environment makes it an attractive destination for international tournaments. However, the key question remains: can the industry shift from being heavily subsidized to becoming self-sustaining?
The answer will depend on continued investment in local talent, the creation of viable business models, and a strategic approach to esports that goes beyond financial backing.
