The advent of Web3 and blockchain technology is proving to be a transformative force that will reshape how games are built, played and monetised.
The tech undoubtedly presents a major opportunity for developers in the Middle East. It offers the chance to catch up with and set global trends.
However, adapting to Web3 is not easy, even for tech-savvy enterprises. Companies must rethink their traditional business models, tech frameworks and several aspects of gaming.
The Promise of Web3
Web3 is a decentralised internet where users have more control over their data and digital assets.
For gaming, this means ripping up the current playbook, where in-game assets can only be used within one publisher’s ecosystem, to allow more open economies.
Blockchain, the backbone upon which Web3 stands, guarantees transparency, security and control over digital assets such as in-game currencies, skins and characters.
Web3 and blockchain are game-changers for Middle Eastern developers. The Middle East is buzzing with a young, tech-savvy populace that are keen gamers.
Most of this demographic is already interested in cryptocurrencies, creating a fertile ground for them to adopt Web3.
Web3 unquestionably falls in line with the Gulf region’s eagerness to diversify economies and invest in the high-tech sectors.
iGaming is a Catalyst for Blockchain Growth
One of the many exciting opportunities within Web3 is the potential for a more robust iGaming scene, an area thirsty for blockchain innovation in the Middle East.
iGaming – online sports betting and casino games – is an industry that thrives on transparency and security. These are two elements of blockchain technology.
For example, smart contracts can help ensure fair play for those concerned about the house having an unfair advantage while automating pay-outs. They can help flag and prevent manipulation.
The Middle East has always been averse to gambling as it stands against their religious beliefs, but several countries are reconsidering their hardline stance.
The United Arab Emirates has already established a framework to guide gambling practices and issue licences. They are more open to cryptocurrencies, creating an environment for iGaming to thrive.
This shift could pave the way for operators to develop the best Arab casinos online, blending innovative technology with cultural and legal sensitivity.
By using blockchain tech, iGaming platforms can build more trust with players and regulators, making it a more acceptable industry for indigenes.
Blockchain-based iGaming platforms can cater to cultural and legal sensitivity by embedding flexible compliance tools that ensure strict adherence to local laws while giving gamers the best user experience.
An Exciting but Complex Situation
One of the main challenges Middle Eastern game developers face as they look to adopt Web3 is the lack of technical expertise.
Developing blockchain is quite different from traditional game design. The former requires engineers familiar with decentralised protocols, smart contracts and tokenomics.
Dubai has positioned itself as pioneers in adopting blockchain, but many developers in the Middle East do not have the training and learning resources to bridge the skills gap.
Upskilling them sounds like a great idea, but it would take time. This skills gap is a massive hurdle for studios looking into the Web3 space.
There is also the issue of regulatory uncertainty that makes adopting blockchain in gaming even more complicated. The Middle East has not found a common ground regarding its regulatory approach to blockchain technology.
The UAE has embraced the phenomenon, regulating their own Dirham-backed stablecoins. By contrast, Kuwait has totally banned cryptocurrency and decentralised systems.
Game developers must tread these muddy regulatory waters carefully, especially when embedding features such as in-game cryptocurrencies or marketplaces for non-fungible tokens (NFTs).
One way to address this issue could be to employ new market solutions. These tools leverage zero-proof technology to allow developers to implement blockchain features, ensuring privacy and security while staying compliant with regulations in different markets.
While developers want to be innovative, staying on the right side of the local laws is even more critical.
The Bigger Picture
The rise of Web3 gaming can have an even bigger impact in the Middle East as blockchain technology could drive the economic diversification the region craves.
Countries have traditionally relied on their crude oil reserves, but with the world looking for more sustainable energies, they must open other revenue streams.
A more robust gaming scene will generate more jobs and investment in the Middle Eastern ecosystem as they position themselves at the forefront of the world tech scene.
Saudi Arabia has taken a gamble on the gaming industry, making it one of the tenets of their ambitious Vision 2030 project.
The Kingdom has a whopping $38 billion gaming fund managed by Savvy Games Group as it looks to establish itself as a gaming hub.
Web3 can help Saudi developers stand out with their games in a crowded market, giving them an edge over competitors.
