Middle East startups in the booming gaming industry have the power to drive positive real-world impact, and a prominent tech investor says they should seize this opportunity to increase their significance.
Abdumalik Mirakhmedov, Director and co-founder of UAE tech venture company, Scalo Technologies, says gaming startups are well-positioned to be both profitable and meaningful by considering their social impact. “With great power comes responsibility,” says Mirakhmedov. “Founders who don’t factor in societal impact are missing a major chance to create value beyond entertainment.”
The global gaming market, currently valued at $282 billion, is spiraling with 3.32 billion gamers expected this year. Projections see it reaching $363 billion by 2027, with the MENA region alone having 80 million gamers.
While games provide fun, accomplishment, connection and escape, Mirakhmedov says they have an evolving role. “Games are transforming into platforms for positive change by harnessing their immersive capabilities to address real-world challenges,” he explains.
Set up in Singapore in 2020, Scalo Technologies chose to base its operations in Dubai last year in view of the UAE’s vibrant ecosystem. Among its investments is Hexacore, a mobile game developer and publisher specialising in hybrid mobile web3 games.
Mirakhmedov says mission-driven companies attract top talent and investments from socially-conscious backers, and he points to research which shows 70% of Gen Z gamers would switch brands supporting social good causes.
“The gaming industry is rapidly changing, with sustainability initiatives now crucial. By embracing impact, startups connect with a conscious audience, unlock new markets, and future-proof their business,” he says.
“Games can teach, promote understanding and motivate action on issues like climate change, mental health and cultural diversity. The potential to ‘gamify’ social good is exciting for impact-focused investors like us.”