The MENA Region: A Growing Market for Game Developers
The Middle East and North Africa (MENA) region has experienced significant growth in recent years, and with its young population, widespread use of mobile phones, and easy access to the internet, the region is poised to continue its upward trajectory. For game developers looking to expand their reach and appeal to a broader audience, the MENA market presents a perfect opportunity.
Why Diverse Payment Options are Key for MENA Gamers
In this guest post, Xsolla President Chris Hewish explores the importance of offering diverse payment options to effectively cater to gamers in the MENA region.
The Fast-Growing MENA Games Market
According to Niko Partners, the MENA-3 region (Saudi Arabia, United Arab Emirates, and Egypt) alone generated $1.8 billion in 2022 and is projected to reach $2.8 billion in 2026, with a compound annual growth rate (CAGR) of nearly 10% over five years. The number of players in these three countries is estimated to grow from 67.4 million to 87.3 million by 2026.
This remarkable growth is attributed to various factors, including cultural shifts, improved regional infrastructure such as broadband and mobile internet access, and a growing youth demographic.
The Power of Internet Access in MENA
Internet World Stats data reveals that nearly 80% of the Middle East’s population now has internet access, with rates exceeding 90% and 98% respectively in the UAE and Saudi Arabia, two countries leading the gaming boom in the region. Additionally, the Middle East Youth Initiative found that 60% of the population in Arab countries is under 25 years old.
As a result, game developers and publishers from around the world are turning their attention to the MENA region as an emerging market for expansion. The region is also witnessing the rise of its own gaming industry, with companies like Sandsoft Games (Riyadh), Tamatem Games (Amman), and Babil (Dubai) making their mark. Furthermore, Saudi Arabia’s Public Investment Fund plans to invest $38 billion in the gaming sector, aiming to establish the country as a prominent player in the industry.
Localisation: More Than Just Language
Xsolla offers User Interface (UI) localisation in over 20 languages, including Arabic. However, the MENA region is diverse, and its unique needs go beyond language barriers. While the general gaming market is growing, in-game spending has yet to reach its full potential due to the prevalent use of cash and a lack of local support for popular payment methods like Visa, Mastercard, or PayPal.
In Islamic finance, money has no intrinsic value, and the concept of interest is forbidden. This limits the use of credit cards, making cash the preferred payment option for many people in the MENA region. Additionally, emerging payment methods such as smartphone wallets are gaining popularity. Boku’s Mobile Wallets Report 2021 predicts that the number of mobile wallets in use will reach 4.8 billion by 2025.
Physical Currency in the Digital World
Due to limited access to physical bank branches in remote areas, cash plays a significant role in Islamic-compliant online payment systems. Customers often utilize Point of Sale (POS) systems at kiosks and convenience stores or make push payments via Automated Teller Machines (ATMs).
For a more consumer-friendly alternative, yStats reports that over half of online shoppers in the region prefer cash on delivery as a payment method, if available. BCashy is one company that caters to this need, offering a service where a driver visits the customer within the hour to collect payment, eliminating the need to visit a store or ATM. BCashy specifically targets gaming communities in Saudi Arabia, UAE, Bahrain, Egypt, and Jordan.
Mobile Money: An Emerging Trend
Direct carrier billing is one way for MENA gamers to make payments using their mobile phones. This method enables game vendors to reach unbanked players who can pre-pay their mobile network and top up their account balance before making a purchase. Another pre-pay option is AliPay, the world’s largest mobile payment platform, which surpassed PayPal globally in 2014 and is partnered with well-established financial institutions in the region, such as the Qatar National Bank (QNB) and First Abu Dhabi Bank (FAB).
Embracing the MENA Games Market
The MENA games market has experienced remarkable growth and is set to continue expanding, driven by significant government investment. This success story comes with unique circumstances, challenges, and opportunities. To fully tap into the potential of the MENA region, game publishers must offer a diverse range of digital payment options tailored to regional habits. In this market, one size does not fit all. By embracing the payment preferences and cultural nuances of MENA gamers, developers can make the most of this marvelous emerging market.