Game on: Esports picks up pace in the region
Esports could inject hundreds of millions of dollars into regional economies
Advocates of esports in the Middle East have their work cut out if their vision of the industry realising its potential is to be actualised. There’s growing enthusiasm for esports, including a competitive gaming scene that is starting to flourish. A number of internationally competitive teams have emerged in the region including Nasr Esports, Yalla Esports in Dubai and Fate in Jordan.
With the region boasting a large young population – in Saudi alone, those under the age of 35 make up over two-thirds of the population – the Middle East provides both a potential source of gamers as well as a mass audience.
However, the region is held back by various obstacles, including a dearth of related infrastructure. Top esports events are held in massive arenas with thousands of people, while millions watch them online. That requires not just physical venues, but also dedicated TV channels, streaming services, mass media participation, and more.
To get to that level of professionalism requires a vast grassroots ecosystem, something that is lacking in the region, observes Sam Cooke, MD and co-founder of Esports Insider, an esports B2B focused media and events platform and agency.
This will ensure a homegrown feeder system for teams, as well as the creation of teams and the fostering of new generations of both players and fans in the region.
“Such a system will better legitimise esports in wider society too,” Cooke adds.
The second obstacle is the lack of reliable data on the number of players, the platforms they use and the audience breakdown.
“The lack of data makes it difficult for potential sponsors to identify where to spend their money on and for international
The gaming industry is today worth more than movies and music combined
esports stakeholders to fully explore the region,” says Cooke.
Like in mainstream sports, corporate sponsorship is the mainstay of esports. The top teams and events attract millions in sponsorship, such as the recentlyannounced $144m Nike sponsorship of the League of Legends Pro League.
A few corporates in the region are starting to dip their toes into esports, including Orange’s sponsorship of Fate esports and Lenovo’s deal with Nasr esports.
The regional space is also very fragmented with different languages, and varying levels of IT infrastructure development, Cooke notes. “There’s also a lack of regional game developers who can create locally-relevant games,” he adds.
Esports Insider is doing its part to drive momentum. Its ESI Digital Summer virtual event this August featured regional-focused panels to discuss opportunities and challenges in the industry. Panellists included Nizar Abu Karaki, Orange Direct Marketing and Sponsorship manager, Jordan; Mohammad Majali, founding partner, Fate Esports; Klaus Kajetski, founder and CEO of Yalla Esports; and Lalit Vase, club director of Nasr Esports, among others.
MULTI-MILLION-DOLLAR OPPORTUNITY
The gaming industry is today worth more than movies and music combined, according to industry figures. Esports, the competitive side of gaming, is worth about $1bn per year, Cooke notes. League of Legends, CS:GO, PUBG Mobile, Fortnite and other popular games are played by millions of passionate gamers worldwide.
Mobile gaming is the fastest growing segment, both at the leisure and professional levels, primarily because of easier accessibility. “PUBG Mobile, one of the most popular franchises, recently announced a $2m esports tournament,” Cooke observes.