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The United Arab Emirates has solidified itself as a global hub for innovation, and gaming is at the heart of its digital transformation. In 2023, the country’s gaming market <a href="https://www.moec.gov.ae/documents/20121/0/2022_03_25_Gaming+Sector+Heatmap+in+English.pdf" target="_blank" rel="nofollow">reached</a> a valuation of over $420 million, growing at a steady annual rate of 8.94%. This thriving market is underpinned by a passionate gaming culture—nine out of ten UAE adults <a href="https://www.thenationalnews.com/uae/2022/06/28/uae-has-highest-percentage-of-adult-gamers-global-survey-reveals/" target="_blank" rel="nofollow">identify</a> as gamers, and 23% spend more than 11 hours per week playing. These numbers are unmatched in the MENA region and reflect an unparalleled appetite for gaming that the UAE is leveraging to build a blockchain-powered future. 
 You might also like: <a rel="" href="https://crypto.news/dubais-mirage-the-city-might-be-heaven-but-not-for-crypto-entrepreneurs-opinion/"> Dubai’s mirage: the city might be heaven, but not for crypto entrepreneurs | Opinion </a> 
As the gaming industry shifts toward web3, the UAE is making bold moves to ensure its leadership in this sector. We all see blockchain gaming’s significant revival in 2024, with 4.4 million daily active <a href="https://gam3s.gg/news/110-million-invested-web3-gaming-q3-2024/" target="_blank" rel="nofollow">wallets</a> globally and $110 million in funding during Q3 alone. By 2025, blockchain gaming is <a href="https://www.arabianbusiness.com/industries/technology/revealed-dubai-hits-stride-as-global-hub-for-web3-gaming-with-gamefi-mainstream-in-uae" target="_blank" rel="nofollow">expected</a> to contribute $1 billion to the UAE economy, establishing the nation as a critical player in the global web3 gaming market, which is projected to hit $4 billion. 
<h2 class="wp-block-heading" id="a-rising-star-in-web3-gaming">A rising star in web3 gaming</h2> 
Recent <a href="https://www.coingecko.com/research/publications/web3-gaming-interest-countries" target="_blank" rel="nofollow">studies</a> place the UAE among the top 15 nations actively driving the web3 gaming sector, alongside China and Vietnam. This reflects the UAE’s aggressive push to integrate blockchain into gaming. The UAE views web3 as a strategic asset—an avenue to redefine how games are developed, played, and monetized. 
Last year, the Dubai Gaming Program 2023 <a href="https://u.ae/en/about-the-uae/strategies-initiatives-and-awards/strategies-plans-and-visions/government-services-and-digital-transformation/dubai-program-for-gaming-2033" target="_blank" rel="nofollow">announced</a> a detailed roadmap designed to attract global players and local talent. The event involved major gaming studios such as Ubisoft, which had previously set up a regional development hub in Abu Dhabi. Similarly, projects like Sandbox have found a natural home in Dubai, where the regulatory environment actively encourages frictionless developments rather than stifling them. 
So, there’s strong support in the region from leading studios that are integrating into web3 gaming. Twenty years ago, we saw Silicon Valley provide a pioneering hub for commercialized technologies, which influenced hundreds of startups. UAE is doing the same for the blockchain industry—more specifically, the web3 gaming industry. 
<h2 class="wp-block-heading" id="building-an-ecosystem-not-just-a-market">Building an ecosystem, not just a market</h2> 
Although other regions like Southeast Asia and Europe have also embraced the blockchain gaming industry, the UAE has been far ahead in establishing comprehensive policies to attract new projects and make the industry a part of its digital economy. It’s not necessarily trying to establish a market for web3 gamin; instead, it’s building an ecosystem. The UAE wants to be seen as a central point of all things web3. This is evident through recent initiatives like <a href="https://dmcc.ae/ecosystems/gaming" target="_blank" rel="nofollow">Dubai’s DMCC Gaming Centre</a> and <a href="https://www.mediaoffice.abudhabi/en/topic/abu-dhabi-gaming-ad-gaming" target="_blank" rel="nofollow">Abu Dhabi’s AD Gaming</a> program.&nbsp; 
The DMCC Gaming Centre in Dubai is a high-tech gaming development facility that houses more than 100 gaming businesses. The center provides easy access to comprehensive resources for these businesses, including funding opportunities, incubators, commercial space, and highly skilled talent pools. 
These are dynamic ecosystems that bring together developers, investors, and thought leaders. Animoca Brands, a heavyweight in the blockchain gaming space, has actively engaged with Dubai’s ecosystem, further legitimizing its global aspirations. 
Abu Dhabi’s AD Gaming initiative goes a step further by emphasizing sustainability. It’s building a self-sustaining ecosystem that attracts and retains talent. Local startups benefit from mentorship, funding, and access to a global network, while international developers find a welcoming environment to test and scale their projects.&nbsp; 
AD Gaming has also partnered with Unity Technologies, the gaming engine behind every AAA title, to create a development program that will help students in AI, VR, and game development gain industry experience.&nbsp; 
<h2 class="wp-block-heading" id="nfts-and-venture-capital-the-winning-web3-formula">NFTs and venture capital: The winning web3 formula</h2> 
The UAE’s web3 gaming ambitions also extend into the realms of the NFTs.The role of NFTs in the UAE’s web3 strategy is not just a digital art or gaming asset—they are integral to creating immersive and player-driven economies.&nbsp; 
This approach has coherently made the country a magnet for global venture capital. Sequoia Capital, Andreessen Horowitz, and other major players have invested heavily in UAE-based blockchain gaming projects, confident in the region’s potential to lead the industry. 
Polygon, a blockchain scalability platform, is a prime example of this synergy. Backed by MENA-based funds, Polygon has accelerated its development cycles, showcasing how the UAE’s strategic investments are pushing projects to launch more efficiently and at scale. 
<h2 class="wp-block-heading" id="the-future-is-bright-yet-with-challenges">The future is bright, yet with challenges</h2> 
Despite the developments in this sector, the road ahead isn’t without obstacles. Scalability remains a critical issue for blockchain gaming platforms. As user bases grow, so does the demand for high-speed, low-cost transactions.&nbsp; 
The UAE has a strong tech infrastructure and regulatory environment for blockchain projects, but it needs continuous upgrades to handle this evolving space. But these challenges aren’t unique to the UAE. What sets it apart is its proactive approach to mitigation. The government’s clear regulatory framework offers stability, which is crucial in a sector prone to rapid shifts.&nbsp; 
It’s also important to note that the UAE’s ambitions extend beyond gaming. The country’s broader economic transformation is focused on embracing blockchain technology as a whole in every potential sector. The lessons learned from building a web3 gaming ecosystem will likely influence other sectors, from finance to real estate. This cross-industry applicability makes the UAE’s investment in blockchain gaming a strategic move with far-reaching implications. 
In the next few years, we expect to see more groundbreaking projects coming out of the UAE. Whether it’s through homegrown startups or global companies establishing a regional foothold, the UAE’s influence on web3 gaming will only grow. 
The UAE’s web3 gaming ambitions are audacious. However, they’re grounded in strategy and supported by an ecosystem designed for success. From government initiatives to VC investments, every element of this ecosystem works in harmony to foster growth and innovation. The region’s ability to attract top talent, secure substantial investments, and provide a stable regulatory environment has already positioned it as a leader in web3 gaming.&nbsp; While challenges like scalability and market volatility will always remain, the UAE government’s current proactive approach is actively addressing these hurdles with practical solutions. 
 Read more: <a rel="" href="https://crypto.news/investing-in-menas-crypto-future-opportunities-and-challenges-opinion/"> Investing in MENA’s crypto future: Opportunities and challenges | Opinion </a> 
 Author: Add name… 
Ilman Shazhaev is the founder and CEO of Farcana, a Bitcoin shooter game. Ilman is an entrepreneur with a strong scientific background in AI, gaming, and web3. He has developed healthtech and gametech solutions that are used by businesses and governments worldwide. A recognized expert by the United Nations, Ilman has authored 46 scientific papers and holds ten invention patents. His journey in web3 began in 2017 with the founding of Oneboost, and his passion for gaming led to the creation of Farcana, a game with a Bitcoin-backed prize pool. His work is reshaping the gaming landscape by integrating web3 elements into mainstream gaming.

Game on: The UAE is betting big on blockchain and winning | Opinion

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