The e-gaming industry has already been regarded as a profitable business sector but it witnessed a rise in demand after the Covid-19 pandemic. The e-gaming sector has outperformed all the other sectors including movies and sport to become the biggest entertainment segment in 2020. Investors interested in the environment of business setup in the UAE, however, had one doubt: ‘Will the e-gaming industry is a one-hit-wonder”?
Most investors doubt whether the industry’s sudden rise in demand is prompted by the Covid-induced lockdowns. However, reports and forecasts indicate that the doubt is out of place and the profitability of the sector is long-term. Investors can consult with business setup consultants in Dubai to start an e-gaming business hassle-free. Read ahead to understand key facts regarding the e-gaming company formation in the UAE.
Positive Global Outlook for E-gaming Segment
As per reports, the e-gaming industry touched a value of a whopping USD 162.32 billion in 2020. However, the industry is forecast to hit an impressive USD 300 billion in the next five years. Considering these facts, setting up an e-gaming business in the UAE is lucrative.
The Middle East to Become a Hotbed of E-sports Companies
A diverse range of industries has found the Middle East and North Africa (MENA) as their base and e-gaming is the latest entrant here. Forbes gas recently described the Middle East as the latest leader in the e-sports industry. The Middle East offers the most conducive platform for e-gaming businesses as the region has a young population crazy about e-sports.
Reports suggest that the Middle East region is home to more than 100 million gamers. Moreover, the UAE offers a conducive business setup environment for e-gaming investors in the form of favourable regulations, affordable packages and modern infrastructure. Business setup consultants in the UAE can advise the investors on how to open an e-gaming company in the country.
UAE as the Launchpad for e-gaming businesses
The UAE is the most ideal location to start an e-gaming company. The country’s high mobile penetration and internet penetration are key factors that attract e-gaming investors into the UAE. Apart from that, the UAE is currently ranked as the 35th largest market for e-gaming in terms of revenue. Moreover, gamers in the UAE are reported to spend an average of 30 minutes per day on mobile games. The UAE government also pours ample support into the development of digital media in the country.
On the back of government support, the UAE universities offer programs related to e-gaming to promote gamers and gaming companies. The UAE has successfully organised some gaming conventions and competitions recently to position the country as a global hub for e-gaming. In 2020, the UAE opened the first edition of the UAE Tolerance E-sports Games. Gamers from all over the world participated in the event, which was launched to promote the values of tolerance among the youth.
Company Formation Opportunities in UAE Free Zones
At present, two free zones provide a trade license to start an e-gaming business in the UAE. Ras Al Khaimah Economic Zone (RAKEZ) and twofour54 free zone in Abu Dhabi offer business setup packages for e-gaming companies. These two free zones offer licenses ranging from core & ancillary e-gaming services, to broadcast support services, digital media services, and event management services. It means even the companies providing peripheral e-sports services can set up a business in the UAE. Business setup consultants in the UAE can help e-gaming investors to start a business in the free zones.
Localisation is the Key for E-gaming in the Middle East
The biggest opportunity for e-gaming investors lies in the localisation of the games. Currently, there is high penetration of online games in the Middle East region but only 3% of the games are in the Arabic language. Arabic is one of the leading languages in the Middle East region and the localisation will further improve the growth prospects. Apart from competitive e-gamers, the Middle East region has a pool of talented gaming professionals who are well-equipped to develop, publish and distribute games that are not only suited for the market but speak its language.
Positive Growth in Gaming Equipment Sector
E-gaming industry in the UAE provides business opportunities not only for developers but also for gaming equipment makers and traders. The UAE has a huge market potential for the trading of online gaming equipment (gaming consoles). The business setup package offered by RAKEZ covers gaming hardware as well.
How can Jitendra Business Consultants Help You?
Gaming investors can hope for high growth by initiating the process of business setup in the UAE as the region is a leading e-gaming market. However, knowing the rules, regulations and laws are essential to successfully incorporate a company in the UAE. Business setup consultants in the UAE such as Jitendra Business Consultants (JBC) can help foreign investors to navigate the rules and regulations.
We can shepherd the investors through the entire procedure of company formation in the UAE without any hassle. Apart from assisting in obtaining the license, JBC provides compliance services for mandatory regulations such as Ultimate Beneficial Ownership (UBO), Economic Substance Regulation (ESR) and Anti-money Laundering (AML) laws. Starting a business in the UAE becomes a hassle-free process with JBC’s bespoke assistance.
