Korean game publishers eye Middle East ma... > IT/과학기사 | it/science

South Korean game companies are turning their attention to the Middle East after Saudi Arabia successfully launched the world’s largest eSports World Cup EWC in July 2024.

The Middle East, represented by countries such as Saudi Arabia and the United Arab Emirates, is a rapidly growing market for gaming due to its government-friendly stance towards the industry, fast-increasing user base, and significantly higher average spending on games compared to other countries.


The Korean gaming industry’s growth is stagnating, and it is thus expected to intensify its efforts to penetrate this new market, which is less competitive than the United States and China.

Among these companies, Krafton Inc. is receiving the most attention. Its flagship intellectual property IP, “PUBG: Battlegrounds” is gaining tremendous popularity in the Middle East. According to the app statistics platform Sensor Tower on Tuesday, the mobile version of Battlegrounds, “PUBG Mobile” topped the revenue charts in both the Saudi and UAE markets App Store and Google Play, surpassing local popular games and the U.S.’ “Roblox.” The game, which has achieved over 100 million downloads in India, earning the status of a national game, is experiencing a similar craze in the Middle East.

It is highly unusual for a game to simultaneously top both major markets in Saudi Arabia and the UAE, indicating that Battlegrounds’ local popularity is likely to be sustained in the long term. The inclusion of two Battlegrounds-related games owned by Krafton in Saudi Arabia’s EWC is also expected to boost its success in the Middle East even further.

The EWC, which started on July 3rd, 2024, and will run until August 26th, features 21 events and offers an unprecedented $60 million in prize money.

The Korean gaming industry is eyeing the Middle East market as a new opportunity. According to Statista, the Saudi gaming market is projected to grow to 2.5 billion in revenue by 2027, and Saudi Arabia had 21 million game users in 2021, up 41 percent from the previous year. Global market research firm Niko Partners predicts that the number of game users in Saudi Arabia, UAE, and Egypt, will grow from 67.4 million in 2022 to about 87.3 million by 2026, with significant increases in average revenue per user.

Saudi Arabia, the dominant force in the Middle East, continues to make aggressive investments in the gaming sector through Savvy Games Group, a company under the Public Investment Fund. The country’s ambition in gaming is part of Crown Prince Mohammed bin Salman’s Saudi Vision 2030 project.

However, Saudi Arabia currently lacks sufficient local gaming talent and its own IP. The Saudi government plans to establish game studios in Neom City, aiming to create a global game hub. This is why Korean game companies are likely to continue receiving strong attention in Saudi Arabia.

High-ranking Savvy Games Group officials visited Korea at the end of May to meet with executives from major Korean game companies such as Nexon, NCSoft, Netmarble, Krafton, and Smilegate. While the details of the discussions remain undisclosed, the industry believes they discussed the expansion into the Middle East market and potential collaborations.

There are concerns within the gaming industry, however, that PIF’s Savvy Games Group could pose a threat to the management control of global game companies. It has already secured stakes in major global game companies, including Korea’s Nexon and NCSoft, as well as Japan’s Nintendo.

▶ “거지들”…‘내가 곧 개훌륭’ 강형욱, SNS에 올린 ‘짤’ 의미는?

▶ 비트코인, 8월에 5억 간다더니…‘부자아빠’ 저자, 갑자기 ‘폭락 예고’ 이유는

▶ “아내한테 걸렸어요 구독 취소 좀”…월급 날릴 위기 대기업직원, 무슨일이

▶ “비 많이 와 배달 못하겠다” 연락이 마지막...40대 女택배기사 급류 휩쓸려 실종

▶ “신의 직장이었는데 엘리트 짐싼다”…저보수에 지방근무 싫다는데