Kuwait became a prosperous nation thanks to its natural endowments, but it has been working to diversify its economy as the world pivots to renewable energy.
One area Kuwait can diversify into is the gaming industry. This broad market, which encompasses mainstream video games, eSports and online casinos, is ripe for the taking.
Gaming can generate jobs, encourage digital entrepreneurship and create new revenue streams for Kuwait if the policymakers and private sector play their cards right.
The Middle Eastern gaming market has been growing at an unprecedented pace due to mobile adoption, investment in cloud infrastructure and its young demographic.
The market was already worth billions of dollars in 2024, opening an opportunity for Kuwait to pounce and capture a slice of this lucrative digital entertainment economy.
Homegrown demand has risen drastically over the past five years, with e-Commerce trackers showing regular transactions in video games, consoles and accessories in Kuwait.
Experts have noted that despite Kuwait's local console and games market being smaller compared to regional behemoths, it is active thriving, and growing, especially in mobile gaming and peripherals.
Having this loyal customer base is an important part of a boisterous domestic industry. Players, customers and an audience are essential.
Kuwait is showing remarkable promise in eSports. Local organisers, communities and tournaments have sprouted in noteworthy numbers in recent years.
National bodies and telecommunications companies in Kuwait have even sponsored competitions and other grassroots events, coughing up enticing prize money. There is clearly commercial interest.
Kuwait eSports Club and other organisers have been putting together regular events. Corporate sponsors from other spheres are also in the mix.
Experts believe these are the building blocks that make esports a natural platform for youth employment, event tourism and a local creative economy.
Gaming will create employment opportunities across various fields, including game development, event management, content creation, technology support and more.
The opportunities within this industry are limitless for both skilled and semi-skilled talent.
Training programmes will be cheaper than infrastructure-heavy projects. They are expected to deliver sizable returns because they link directly into the global digital markets.
Businesses and creatives can also attract foreign investment to Kuwait. Independent studios and content creators can sell the local scene.
A small studio or a popular Middle Eastern streamer in Kuwait can generate foreign revenue and put the country on the map in an industry with low marginal costs once a product is developed.
Gaming can contribute to the Kuwaiti economy through tourism and events. Tournaments bring players and fans together, bolstering the local economy and international tourism.
Even mid-sized events attract foreigners to spend money in local Kuwaiti hotels, restaurants, and other establishments. Organising even bigger events would establish Kuwait as one of the foremost destinations for competitive gaming.
Improving broadband and data centre capacity, as well as cloud services to support gaming, actually benefits the broader digital economy.
Telecommunications companies have been investing heavily to reduce latency. This development will boost the gaming industry and have a similar impact on fintech, health tech and Kuwait's smart cities.
Gaming start-ups will attract interest from venture capitalists keen on jumping on the domestic and regional traction. One or two successful exits here and there will lay the foundation for massive investment in the Kuwaiti digital economy.
Unfortunately, there are constraints for Kuwait to contend with. Firstly, gambling and casino-style betting are illegal in Kuwait under the country's staunch religious laws.
Many Arab players already visit the كازينوالكويت, which are licensed in other jurisdictions. The Kuwaiti government misses out on the tax revenues they generate.
Any effort to legitimise casino operations or betting platforms as economic drivers will likely face pushback from different factions.
Kuwait is smaller than some of its neighbours in the Middle East. That sheer size difference will affect scaling, forcing Kuwait to depend more on exporting services and events.
The country will need to partner with players across the region and improve its cultural adaptability to compete across various markets.
However, Kuwait can start pulling policy levers that will help make a potential diversification play successful by organising grants for creative start-ups and offering tax incentives for tech investment.
They can also encourage partnerships between telecoms and eSports organisers to build venues and vocational programmes that teach gaming skills, such as coding, animation and live production.
More importantly, Kuwait needs to consider setting up a regulatory framework to oversee legal gambling. Citizens are already participating in the activity, and the government is losing out by refusing to reroute this potential tax revenue to its national coffers.
Gaming is a pragmatic and low-risk route for diversifying economic revenues. Kuwait must capitalise on the opportunities it offers.
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