Gaming sector booms: Bahrain stands out as second fastest-growing market in GCC, just behind Saudi Arabia

TDT | Manama

The Daily Tribune - www.newsofbahrain.com

Report by Mohammed Darwish

A recent report has spotlighted video games as one of six sectors ripe for investment in Bahrain, underscoring the local enthusiasm for gaming, especially on mobile platforms.

The report, “Situating Bahrain in a Future World: Opportunities for Foreign Investment,” by Arthur D. Little, reveals that Bahrain’s video game sector is the second fastest-growing in the Gulf, just behind Saudi Arabia.

The report paints a vivid picture of the video game industry’s surge across the Gulf Cooperation Council (GCC) countries and suggests Bahrain could ramp up its acquisitions in this arena.

Bahrain has already made waves by attracting significant investments in cloud services from major players like AWS and, more recently, Tencent.

Computing services

While cloud computing services flourish in Saudi Arabia and the UAE, Bahrain is also making strides in this field.

Cloud gaming, a niche within cloud computing, leverages the widespread love for mobile games. The GCC’s video game sector is booming, with Bahrain standing out as the second fastest-growing market in the region after Saudi Arabia.

The report also notes a cultural shift in the Middle East and North Africa (MENA) region, where gaming start-ups are proliferating, and game development is gaining respect as a profession. Bahrain could potentially tap into this momentum by investing in game software development, studios, and gaming hardware.

Renewable energy

Renewable energy  also emerges as a sector with significant promise. Investment in renewable energy in the MENA region has surged over the past decade, reflecting a concerted effort across GCC economies to meet their energy efficiency targets.

The report includes a chart detailing the installed and planned solar power capacity in the region up to 2035. With abundant solar radiation and coastal sites ideal for wind power, the MENA region is well-positioned to expand its renewable energy capacities.

Considerable interest

The investment outlook is positive, with the UAE and Saudi Arabia already attracting considerable interest in this sector. Bahrain could explore joint renewable energy projects with Saudi Arabia, such as solar installations along the King Fahd Causeway, and position itself as a leader in managing decentralized energy grids.

Bahrain continues to be a major player in the financial services sector, with assets totaling over $210 billion. This sector is the largest nonoil contributor to Bahrain’s GDP, making up around 18% in 2020.

Greater transparency

Although financial services are well-established in the UAE and Saudi Arabia, there is a need for greater transparency in commercial finance across the GCC. Bahrain could address this by creating a company to provide ratings for commercial finance transactions, with the potential to expand these ratings globally.

Leveraging blockchain technology could further enhance this platform.

Bahrain’s potential as a hub for real estate services in the GCC region is also highlighted, offering expertise in property management, digitization, valuation, transaction advisory, project management, and public financing services.

Regulatory environment

Its favorable regulatory environment and extensive experience in the real estate sector, through organizations like the Real Estate Regulatory Authority (RERA) and the Survey and Land Registration Bureau, position it well for this role.

Manufacturing remains crucial for all GCC economies, with Saudi Arabia and the UAE investing heavily in the industrial sector. Bahrain’s strategy should focus on building upon its existing industrial base, particularly in aluminum.

As one of the world’s leading aluminum smelters and the largest in the GCC, Bahrain is well-placed to expand its industrial capabilities.