Domestic game companies are putting significant effort into capturing the Middle East market. Based on “oil money,” this region possesses high financial power and purchasing capability but is still an untapped market due to inadequate communication infrastructure and other issues. Although the uncertain regulatory environment of local governments in the past posed challenges, the situation is becoming more positive, especially with countries like Saudi Arabia actively investing in this sector.
As of Feb. 27, companies leading the charge into the Middle Eastern market include Krafton and Wemade. These firms are leveraging their strengths in PC and mobile games, e-sports, and virtual assets to penetrate the Middle East.
The market’s potential is significant yet untapped due to the prevailing Islamic culture, which adds a level of conservatism, and the somewhat lacking communication infrastructure, which has so far not supported the purchasing power of gamers in the region.
Among domestic game companies, Krafton is currently achieving tangible success. According to mobile market research firm Sensor Tower, as of February 27, Krafton’s PUBG Mobile ranks within the top 5 in revenue in both Saudi and the United Arab Emirates’ app markets. Last month, PUBG Mobile generated approximately US$30 million in revenue from both the Saudi Google Play Store and the Apple App Store, with the United Arab Emirates also generating the same amount.
Krafton is also active in local e-sports, having hosted the top international e-sports competition for PUBG, the PUBG Global Championship (PGC) 2022, in the UAE, and PUBG Global Series 2 (PGS2) in Saudi Arabia. Furthermore, PUBG has been selected as an official event for the e-Sports World Cup to be held in Saudi Arabia this summer.
Wemade, a leader in blockchain gaming in Korea, has focused on market penetration with its virtual asset Wemix. In January last year, the company established Wemix MENA, a business expansion hub for the Middle East and North Africa, in Abu Dhabi, UAE. It is also pushing to establish the Wemix Play Center within the Dubai Chamber of Commerce and the Dubai International Financial Centre Innovation Hub, aiming to integrate various blockchain games into the Wemix ecosystem.
Com2uS is also considering entering the Middle East market. Nam Jae-gwan, vice president of Com2uS, mentioned during a third-quarter earnings conference call in November last year that the company is reviewing the establishment of a Middle East office. He also mentioned the possibility of hosting the annual Summoners War e-sports event, the Asia-Pacific Cup, locally there. However, these plans are not yet finalized.