The Middle East has developed into a premier destination for numerous businesses in recent years, with the region becoming a centre of focus for investors from around the world.
That’s because governments in the region have created an environment that favours business development. Read on as we analyse some of the key trends to watch out for.
Gambling
Gambling has traditionally been prohibited by the religious laws that govern the Gulf States, although there are signs that the tide could be turning.
Some countries in the region, including the United Arab Emirates (UAE), have opened their doors to regulated forms of gambling over the past year.
Eyebrows were raised when the UAE granted its first-ever lottery license and is on track to house the first integrated resort in the Middle East and Africa (MENA) region.
The resort is widely expected to be granted a casino license, further highlighting the UAE’s willingness to tap into the gambling industry.
While the UAE has relaxed its stance on gambling, neighbouring countries such as Kuwait remain vehemently opposed. Kuwait is currently working on its own entertainment resort at Failaka Island, but it has no plans to allow any form of gambling in the establishment.
However, if the UAE’s casino project proves to be a massive success, it could inspire Kuwait and other sceptical middle East nations to reconsider their stance on gambling.
Real money online casinos in Kuwait already operate, but they are licensed by foreign regulators. This a blow to the government as they are missing out on taxation revenues.
While Kuwait is still determined to diversify its economy, it is unclear whether licensed gambling will form part of their future plans.
eSports
Gaming is an area of interest for Middle Eastern countries, and the region has gradually become a major player in the global industry.
Government investment in digital entertainment, coupled with widespread access to the internet and interest from young people, means gaming is growing quickly in the region.
This unprecedented growth makes it an exciting area for business and investment. Saudi Arabia is one of several countries investing heavily in the eSports sector, with the country determined to establish itself as a big hitter in professional gaming.
The Saudis have acquired stakes in some of the world’s biggest gaming companies and partnered with international eSports leagues, showing the country’s desire to dominate the market.
One of the major events in the country’s eSports calendar is the Gamers8 festival, which has become one of the biggest online gaming tournaments in the world.
Gamers8 is notorious for attracting the best talents around the world and paves the way for lucrative sponsorship deals from international brands.
While the Saudis are making their presence known in the eSports sector, the UAE is not far behind in the pecking order, with Dubai also a prominent venue for gaming.
The Middle East is already reaping the benefits of investing in the eSports sector. However, there are still several ways to extract more revenue from the industry, including media rights, sponsorships and merchandising.
Tourism
The Middle East is no stranger to the world of tourism. The region has been home to some of the world’s most iconic destinations for centuries.
However, the sector is changing, and the usual suspects such as the Saudis and the Emiratis are leading the charge, having sanctioned large-scale projects aimed at attracting more tourists.
Tourism is a huge part of Saudi Vision 2030, and it has given the green light to several major projects such as NEOM and the Red Sea project, which are designed to lure luxury tourists and adventurers.
Dubai is also widely regarded as a premier destination for visitors, both for business and leisure purposes. The success of Expo 2020 solidified Dubai’s reputation as a major tourism hub, and the city has since doubled down by leveraging technology to improve the tourism experience.
One of the most fascinating developments in the Middle East is the increasing number of Spanish tourists visiting the region.
This may be due to the improved travel links between Spain and the Middle East, but it also reflects the region’s increased appeal to new markets.
Such links pave the way for fresh business opportunities in several key sectors in the Middle East, including hospitality, transportation and entertainment.