Did you know that the gaming market in the Middle East and North Africa is expected to reach over $6 billion by 2027? Dubai is leading the way, becoming a top place for tech, games, and new ideas.
This makes it a great place to start a gaming business. The city’s gaming industry is growing annually, with the government providing strong support. Because of this, there are many chances for people who want to build their own company.
Why Dubai Is the Best for Gaming Businesses
Before knowing the process of setting up a business, know why Dubai is an excellent choice for gaming entrepreneurs.
1. Expanding Gaming Market
The gaming industry in the UAE is growing quickly. In 2023, the market was valued at approximately USD 484.1 million, and it is projected to reach USD 754.2 million by 2030. This growth is driven by an increase in gaming popularity, especially among the younger population.
2. Government Initiatives to Support Gaming
Dubai’s government is actively promoting the gaming sector through initiatives like the Dubai Program for Gaming 2033 (DPG 2033).
The program aims to create 30,000 gaming jobs and support the development of the gaming economy, with a target of contributing USD 1 billion to the GDP.
The government also introduced a new gaming visa, which makes it easier for international talent to settle in Dubai.
3. Get Access to Technology and Infrastructure
Dubai is known for its advanced infrastructure and access to cutting-edge technologies like virtual reality (VR) and augmented reality (AR), which can give your business a competitive edge.
The country is also embracing cloud gaming and blockchain-based games, providing an innovative environment for gaming companies.
4. International Exposure and Events
Dubai is home to some of the world’s largest gaming events, such as the Dubai Esports & Games Festival. These events provide opportunities for marketing, partnerships, and sponsorships.
You can also connect with global influencers, developers, and gamers, giving your business exposure to an international audience.
Steps to Starting a Gaming Business in Dubai
Now that you know why Dubai is an ideal location, let’s look at the steps involved in setting up your gaming business.
1. Choose the Type of Gaming Business
The first step in setting up your gaming business is to decide on the model you want to pursue. Some options include:
- Game Development: If you’re creating video games or mobile apps, you’ll need a development license.
- Gaming Lounge: If you want to provide gaming stations for customers, you’ll need a gaming lounge or arcade license.
- Esports Arena: Dubai is increasingly popular for esports, and you can host events, tournaments, or training camps.
- Retail Shop: Selling games, gaming equipment, or accessories is another option for your business.
- Online Gaming: You could start an online gaming platform offering multiplayer experiences or cloud-based gaming.
Each of these business models requires different types of licenses and permits, so it’s important to choose the one that aligns with your business vision.
2. Choose Between Free Zone and Mainland Setup
When setting up a business in Dubai, you will need to decide whether to establish it in a free zone or on the mainland. Here are the key differences:
| Criteria | Free Zone | Mainland |
|---|---|---|
| Ownership | 100% foreign ownership | Requires a local partner |
| Operating Area | Limited to the free zone or international markets | Can operate anywhere in the UAE |
| Cost | Typically higher setup costs | Lower cost but requires more regulatory paperwork |
| Speed | Fast setup and licensing | Moderate setup time |
Choosing the right setup depends on your business model and market goals.
If you want to operate internationally or online, a free zone might be ideal. If your goal is to sell directly to UAE residents, the mainland option might be better.
3. Prepare a Business Plan
A solid business plan is crucial for any startup. Your plan should include:
- An overview of your business and goals
- Analysis of the target market and competition
- Financial projections and capital investment needs
- Marketing strategies to attract customers
- Cost estimates for initial setup, equipment, and licenses
If you plan to apply for funding, whether from investors or banks, a clear and well-researched business plan is essential.
4. Apply for the Necessary Licenses
To legally operate your business in Dubai, you’ll need to obtain the relevant licenses. The type of license you apply for will depend on your business model. Some of the licenses you may need include:
- Game Development License: For companies creating and developing games.
- Gaming Lounge/Arcade License: If you want to provide physical gaming stations for customers.
- Esports Arena License: Required if you plan to host tournaments or esports events.
- Online Gaming License: If you’re planning to run an online gaming platform.
- Entertainment Permit: Often required for public gaming spaces and events.
You can apply for these licenses through the Department of Economy and Tourism (DET) or the relevant free zone authority.
5. Apply for Dubai Gaming Visa (DPG 2033)
As part of the Dubai Program for Gaming 2033, Dubai has introduced a gaming-specific visa, known as the Dubai Gaming Visa (DPG 2033). This visa allows international game developers, content creators, and esports professionals to live and work in Dubai.
It is a great opportunity for entrepreneurs and skilled professionals looking to tap into the growing UAE gaming market.
6. Set Up Physical or Online Space
Depending on your business model, you will need a physical location or a virtual setup:
- Gaming Lounge/Arcade: A retail or entertainment space equipped with consoles, PCs, and gaming equipment.
- Game Shop: A retail space for selling video games and accessories.
- Esports Arena: A large space for hosting tournaments, live-streaming events, and gaming competitions.
- Online Platform: If you’re running an online gaming business, you’ll need a website or app, along with the necessary servers and support infrastructure.
Ensure that your space complies with all relevant safety regulations and health permits.
7. Open a Business Bank Account
Once your licenses and permits are in place, you’ll need to open a business bank account in the UAE. This will allow you to handle transactions, pay employees, and manage finances. Be sure to provide the necessary documentation, such as your trade license, passport, visa, and lease agreement.
8. Market Your Gaming Business
To succeed in the competitive Dubai gaming market, you’ll need to develop a strong marketing strategy. Here are some ways to promote your gaming business:
- Use social media platforms to build a following and engage with your audience.
- Partner with gaming influencers to increase visibility and credibility.
- Sponsor or host esports tournaments to attract local and international players.
- Offer special promotions, events, or discounts to bring in customers.
Develop a mix of online and offline marketing strategies to reach a broad audience.
Need Help With Setup?
Setting up a gaming business in Dubai can be a complex process, especially when dealing with licensing, paperwork, and legal requirements. That’s where Bestax can help. They specialize in company formation and can assist with every step of the setup process.
Bestax offers services such as:
- Business setup in free zones or mainland Dubai
- License applications and government paperwork
- Visa processing for employees and business owners
- Corporate tax registration and financial services
If you need assistance with your gaming business setup, visit Bestax for more information and to get started today!
Quick FAQs
Can foreigners fully own a gaming business in Dubai’s free zones?
Yes, foreigners can fully own a gaming business in Dubai’s free zones. Free zones like DMCC and IFZA allow 100% foreign ownership without the need for a local sponsor.
What visa options are available for gaming entrepreneurs in Dubai?
Gaming entrepreneurs can apply for the Dubai gaming visa (DPG 2033), which is part of the Dubai Program for Gaming 2033. Additionally, investor visas and employee work visas are available depending on the type of business setup.
Do I need AR/VR development permissions for a gaming company?
If your gaming company focuses on AR/VR development, you may need a game development license in Dubai. However, specific permissions are not typically required unless you are creating content that involves sensitive or highly regulated technology.
How much initial capital is needed to start an arcade or gaming lounge?
Initial capital needed for a gaming lounge or arcade can range from AED 50,000 to AED 150,000, depending on the size and equipment. Larger setups or high-end equipment could cost upwards of AED 200,000 or more.
What are the infrastructure needs (space, internet, hardware)?
For a gaming lounge, you’ll need a space of at least 100–200 square feet with comfortable seating and gaming stations. High-speed internet and gaming hardware like consoles, PCs, and VR headsets are essential for smooth gameplay.
Are there any special insurance or health regulations for gaming venues?
Gaming venues must comply with health and safety regulations, including fire safety and emergency protocols. Insurance for property, equipment, and public liability is also recommended for protection.
How are esports tournaments regulated in Dubai?
Esports tournaments in Dubai are regulated by the Dubai Sports Council (DSC) and local authorities. Organizers must apply for licenses and comply with rules around prize money, sponsorship, and safety.
Can gaming companies get government funding or incentives?
Gaming companies in Dubai may qualify for government funding or incentives under the Dubai Program for Gaming 2033. Free zones also offer tax exemptions and other benefits for technology-related businesses.
What are the import rules for gaming hardware and consoles?
To import gaming hardware into the UAE, businesses need an import permit and must comply with UAE Customs regulations. There is also a 5% duty fee on electronics, though specific rules may vary by product type.
Disclaimer: The information provided in this blog is for general informational purposes only. It is not legal advice and should not be relied on as such.
