Voices in the Dubai gaming and esports ecosystem

On a recent trip to the United Arab Emirates, I absorbed some of the environment for the growing industry of video games and esports in Dubai, where there are more than 100 gaming and esports startups.

Dubai is part of a fast-growing region when it comes to young players who have a lot of money to spend on video games. It’s also a magnet for those seeking to raise money in a world where it’s a lot harder to get money for game projects. It’s no secret how tough it can be to get funding for games or Web3 projects in the U.S. — especially with so many layoffs happening right now. Many companies come to the Middle East and Dubai in particular hoping to get quick money, said Paul Dawalibi, CEO of Holodeck Ventures and Holodeck Media, who works in both Dubai and Abu Dhabi. Too often, the funding seeker’s hit-and-run approach is flawed, Dawalibi said.

Part Canadian and part Lebanese, Dawalibi migrated from New York 2.5 years ago to Dubai to explore opportunities for venture investing and helping the government create a metaverse and gaming strategy for building new business ecosystems.

“There is definitely money available for those companies, if you want to build the ecosystem here,” Dawalibi said. “But if you’re living in LA and getting on a place and you show up in Dubai, Abu Dhabi or Riyadh, hoping someone is going to splash a bunch of cash on you — then you can go back to LA. That doesn’t work anymore.”

The collective goal of the region’s governments is to transform the economy from one built around natural resources, tourism and finance to one that has diverse jobs in tech, edtech, games and esports. That means they need to attract the talent to build companies with roots in the Middle East.

This vision to build a new economy persists despite the war in Gaza and the tragic events of October 7 in Israel. Dubai has its issues, of course, but it is far better off than other places like Gaza, due in no small part to the decisions of its leaders, as noted by New York Times Columnist, Thomas L. Friedman.

If Dubai has an advantage now, it’s as a marketing hub as a place that can generate buzz. While Dubai is a lot less dependent on the oil economy, it knows that the region may run out of that resource in a few decades. Real jobs have to replace it, and on a pretty huge scale.

Belal Jassoma, head of business development for the DMCC (Dubai Multi Commodities Centre) also stated that Dubai develops dedicated ecosystems for potential high-value sectors as well as an emphasis on the tech ecosystem and incubated companies.

Further, the region has made large investments in blockchain and cryptocurrency, attracting businesses such as Coinstelegram, Anna Tutova’s company, with the UAE government’s support. The region is also home to several private funds and tech accelerators. Additionally, some of the world’s biggest gaming companies, such as Ubisoft and Tencent, have established offices in the UAE.

In an effort to attract investment in the region, the UAE has implemented favorable tax treatments, aiming to diversify its economy. While the region is short on tech talent, the government is making initiatives to upskill the population and support gaming and tech companies. This vision and investment have attracted the attention of global gaming industry leaders.