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Declining Gaming Revenues Bring Middle East Opportunities
The global gaming industry faces plenty of challenges, but the Middle East’s investments have resulted in growth opportunities and regional resilience.
Ask a casual observer about the state of the gaming industry, and they’ll likely tell you that it’s in fine health. After all, this vast landscape of big-studio and indie developers, consoles, and cloud-based services rakes in billions each year.
However, despite headline-grabbing news such as Microsoft’s recent $75 billion acquisition of Activision Blizzard, a closer examination reveals several underlying challenges. Despite initial surges during the pandemic, gaming usage and revenues have declined due to factors like inflation. Business Insider recently reported a 2.3% decrease in US gaming revenue in 2023 compared to the previous year, signaling a shift in consumer behavior that includes reduced gaming hours per week.
Analyst Matthew Ball’s assessment of the industry’s state highlights a concerning trend of layoffs, with a significant increase observed in 2024. Substantial cuts within Microsoft Gaming have impacted approximately 8% of its workforce. Meanwhile, key departures from Blizzard add to the industry’s instability.
While these layoffs have global implications, the Middle East and North Africa (MENA) region presents a unique opportunity amidst the industry’s challenges. With a rapidly growing gaming market and substantial government investments, countries like Saudi Arabia and the UAE are aiming to establish themselves as global hubs.
Also Read: Top 10 Best Video Games Set In The Middle East
Saudi Arabia’s Savvy Games Group, backed by a $38 billion investment from PIF, seeks to bolster the Kingdom’s gaming industry and emerge as a global leader. Similarly, the UAE’s ambitious Dubai Program for 2033 aims to position Dubai among the top 10 cities in the gaming industry by boosting its digital economy and GDP.
These initiatives could offer insulation against the industry’s turbulence while creating growth opportunities for regional gaming companies. By diversifying their economies and investing in long-term development, Middle Eastern countries are demonstrating a strategic approach distinct from the short-term profit-driven motives seen elsewhere in the industry.
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Lebanon Ministers Meet Visa Over National Digital Payment Platform
Finance and technology ministers say a comparative study and roadmap will follow before any decision on adopting a model.
Lebanon’s finance and technology ministers met representatives from Visa last week to discuss a proposed unified national digital payment platform for government services, according to a readout from the Ministry of Finance.
The meeting brought together Finance Minister Yassin Jaber, Minister of State for Technology and Artificial Intelligence Kamal Shehadeh, a Visa delegation, and experts from both ministries. Discussion focused on whether Lebanon could establish a single platform through which citizens and institutions would pay taxes, fees, fines and other official transactions electronically, using mobile phones and other digital channels.
The Visa delegation presented examples from countries that have adopted unified government payment platforms, including the United Arab Emirates, Singapore, Estonia and Jordan. According to the readout, the examples were presented as having increased collection rates and expanded financial inclusion.
Talks covered settlement mechanisms, direct transfer to the treasury account, financial reconciliation, risk management, cybersecurity, fees, and an operational model that would involve the private sector. The parties agreed to continue technical and institutional consultations, prepare a comparative study, and develop an implementation roadmap before any decision on adopting a model for Lebanon.
Jaber said the Ministry of Finance had already enabled citizens to pay using credit cards and e-wallets through transfer companies, but described the proposed platform as a further step. He framed the development of electronic payment and collection systems as a priority within the ministry’s modernization plan.
Also Read: Deezer Says AI Tracks Now Make Up 44% Of Uploads
Shehadeh outlined the citizen-facing concept as a single mobile application through which users could settle obligations to ministries, government institutions and other bodies.
“The idea, in short, is that any citizen downloads an application on their mobile phone, through which they can pay all service obligations for all ministries, government institutions, or those owned by the Lebanese state, and others as well, as the platform is not limited only to state institutions,” he said.
Shehadeh added that the platform would not displace banks and money transfer companies that currently provide collection services to the state, calling it complementary to their work.
