Control, Alt, Expand: The Rise and Rise of Esports in the GCC

Legal and Regulatory Considerations for 2025 and Beyond

Introduction

The rise of esports and gaming in the Middle East has been nothing short of colossal. In just a few short years, esports in the Gulf Cooperation Council (GCC) region have evolved from an emerging trend to a central pillar of economic diversification and youth engagement. In Saudi Arabia, esports form an important part of the nation's Vision 2030 project, with the first Esports Olympics scheduled for Riyadh in 2027. The Qiddiya City Esports & Gaming District aims to transform gaming experiences into a world-leading venue. Meanwhile, the UAE has hosted premier events, built leading venues, and Dubai has unveiled its Program for Gaming 2033, targeting top 10 global gaming city status. The GCC has firmly set its sights on leading the competitive gaming revolution with substantial investments to achieve this goal.

How and why: the current state of esports in the GCC

1. Market growth and investment

It may be helpful to start with why GCC nations are investing so heavily in this sector. In large part, esports are seen as a key driver of economic growth. In Saudi Arabia, the esports sector alone is expected to contribute $13.3 billion to the Kingdom's GDP by 2030, with the creation of approximately 39,000 new jobs.[1] The UAE has similarly ambitious goals, with Dubai aiming to increase the industry’s contribution to its GDP by nearly $1 billion over the next decade, with 10,000 new jobs.[2]

Other major investments and developments in the region include:

• Saudi Arabia's 2025 Esports World Cup in Riyadh featuring 25 events with a prize pool exceeding $70 million.[3]
• The UAE’s hosting of the Dubai Esports and Games Festival 2025[4], the E-Gaming League (EGL)[5], the Insomnia Gaming Festival, and the BLAST Premier World Final. In addition, the UAE has established the Emirates Esports Federation under the aegis of the Ministry of Sports.[6]
• Qatar’s Esports Federation, launching a Dota 2 league with a total prize pool of $2.6 million.[7]
• The formation of the GCC Esports Federation to facilitate regional tournaments and development.[8]
• The Qiddiya Gaming & Esports District, covering 500,000 m² of land, represents another milestone investment, comprising arenas, facilities, and gaming headquarters that will serve as the Esports World Cup's home.

2. Demographics and audience

The GCC's youthful population − with an average age of 27 and over 20% of the population being under 15 years old – is driving the gaming boom. High internet penetration and gaming technology access fuel esports enthusiasm. Just a few years ago, the Saudi Arabian Ministry of Communications and Information Technology published findings that indicated that 67-89% of Saudi Arabia's population engages in gaming,[9] while 48% of Saudi women identify as gamers[10] − an astonishing number, which is unsurprisingly significantly higher than the global average.

And gaming is not just a hobby: what was once a pastime has transformed into a viable career path, creating opportunities for professional players, content creators, tournament organisers, and technical specialists. Saudi gamers alone are reported to have won over $14 million in prize money across 909 tournaments to date.[11]

Key legal and regulatory considerations

The GCC’s lofty goals for the esports and gaming industry cannot be achieved solely through investment, however; they also require a legal and regulatory landscape which is conducive to sustained growth. This landscape unsurprisingly covers a vast range of regulations, protections, rights and obligations, including everything from intellectual property, content regulation, the rules of tournaments, the framework for participants and spectators to travel into GCC countries and more. We set out some of these key aspects below, to highlight the many different components that must come together to ensure esports and gaming growth in the region.

1. Intellectual property protection

Intellectual property (IP) is a critical component of gaming and esports. Game developers, publishers, tournament organisers, teams, and content creators all possess valuable IP assets requiring protection. Important considerations include:

• Game IP rights and localisation: International game publishers generally hold rights to the games themselves. However, local adaptations, Arabic localisation, and culturally specific content are becoming increasingly important for game developers looking to promote their games in the region. According to Saudi Esports Federation surveys, 75% of GCC gamers consider the portrayal of Arab culture important, and 41% only play games with Arabic localisation.[12]
• Tournament and broadcasting rights: As the region hosts more premier events, clearly defining broadcast rights, sponsorship parameters, and participant image rights becomes essential. The 2025 Esports World Cup in Riyadh will be covered by over 50 international broadcasters, highlighting the complexity of managing these rights across jurisdictions.
• Team and player branding: Professional teams like Saudi Arabia's Team Falcons and UAE-based YaLLa Esports have developed valuable brands requiring protection throughout the region.
• Cross-border enforcement: The international nature of esports – with team members being located across the region, and tournaments taking place in many countries – creates unique challenges requiring coordinated IP strategies across multiple GCC jurisdictions.

b. Tournament regulations and governance

Just like for any traditional (i.e., non-computer-based) sport, the establishment of well-structured rules and governance frameworks is essential for the sustainable growth of esports in the region:

• Tournament standards: Major events like the Esports World Cup and Dubai Esports Festival have established comprehensive rulebooks governing competition formats, player eligibility, and dispute resolution mechanisms.
• Player contracts and team agreements: The influx of international esports organisations establishing GCC branches necessitates carefully structured contracts addressing salary structures, prize money splits, content creation obligations, and intellectual property ownership.
• Anti-doping and integrity: Major tournaments increasingly implement anti-doping measures and match-fixing prevention protocols (e.g., to combat players using performance-enhancing drugs to stave off fatigue and improve attention and reactions speeds). These measures must comply with local regulations while meeting international standards.
• Prize money and tax implications: The significant prize pools require clear distribution structures and compliance with banking regulations, while international players may face complex tax considerations.

c. Game content regulation and compliance

Game content must navigate unique regional requirements:

• Content classification: GCC countries have specific rating systems differing from PEGI[13] or ESRB[14] standards, requiring publishers to understand local requirements.[15] 
• Culturally sensitive content: Certain themes common in Western games require modification for GCC distribution, requiring expert guidance on necessary adaptations.
• Licensing requirements: Publishers must navigate varying licensing processes across jurisdictions, with Saudi Arabia's General Commission for Audiovisual Media and the UAE's National Media Council maintaining distinct registration requirements, for example.

d. Player visas and immigration considerations

The global nature of esports means that immigration issues are central to tournament operations:

• Gaming visas: The UAE has pioneered dedicated visa programs for the gaming industry. The Dubai Gaming Visa, part of the Dubai Program for Gaming 2033, offers long-term residency (up to 10 years) for developers, content creators, specialists, and esports players.[16]
• Tournament entry requirements: International players require specific entry permissions, necessitating coordination with immigration authorities, particularly for countries with stricter visa requirements.
• Residency requirements for teams: Organisations establishing permanent presence must navigate local requirements, with free zones such as the DMCC Gaming Centre offering specific advantages.[17]

e. Data protection and privacy

Esports generate vast amounts of data on players, giving rise to important privacy considerations:

• Player performance data: Collection and analysis must comply with emerging frameworks, such as the Personal Data Protection Laws in place in both Saudi Arabia and the UAE.
• Audience data: The significant footprint generated through streaming platforms and engagement tools requires appropriate consent mechanisms and data minimisation strategies.
• Cross-border data transfers: Recent localisation requirements and restrictions create compliance challenges requiring strategic planning.
• Biometric data considerations: The use of eye-tracking, heart rate monitoring, and reaction time metrics raises novel legal questions, particularly for minor participants.

f. Advertising and sponsorship regulations

Sponsorship and advertising also require careful navigation of regional regulations:

• Content restrictions: Advertising in the GCC must comply with Sharia principles and local cultural norms. Each jurisdiction has specific restrictions on content featuring gambling, alcohol, or inappropriate imagery. For example, Saudi Arabia's General Commission for Audiovisual Media has explicit guidelines for gaming content, while the UAE's National Media Council enforces its own standards.
• Influencer marketing regulations: GCC countries have implemented stringent influencer marketing regulations. Esports personalities and content creators must disclose partnerships and obtain proper licenses.[18] In the UAE, influencers must be licensed by the National Media Council, while Saudi Arabia requires registration with the General Commission for Audiovisual Media.
• Youth audience considerations: With the significant underage audience, advertising strategies must consider special protections for minors. This includes limitations on advertising specific games rated for mature audiences and restrictions on promotional tactics that might exploit young viewers.

Future regulatory developments

As the esports ecosystem in the GCC continues to mature, we anticipate several regulatory developments:

• Harmonised regional framework: Given the regional mission of the GCC Esports Federation, we may see a growing move towards standardised regulations across member states, simplifying compliance for organisations operating across multiple countries.
• Player welfare regulations: As professional esports become more established, we expect to see increased focus on regulations addressing player welfare, including practice hour limitations, minimum contract standards, and health monitoring requirements, as well as specific protections for minors, given the significant number of under-18s taking part in gaming. Tournament participation, content creation, and data collection from minors require robust parental consent mechanisms that comply with local laws regarding guardian approval. Furthermore, we understand that GCC regulators may consider implementing playing time limits for minors.
• Educational integration: Saudi Arabia and the UAE have begun integrating esports into educational frameworks. This trend will likely expand, requiring regulatory frameworks for school-based competition and esports scholarships.
• Integration with traditional sports governance: As demonstrated by the International Olympic Committee's agreement to host esports Olympics in Saudi Arabia from 2025 onwards, traditional sports governance structures are increasingly embracing esports, bringing not only new opportunities, but also additional regulatory complexity and compliance requirements.
• National security considerations: Data localisation requirements and security protocols are increasingly important as gaming platforms become vectors for cyber threats. Developers and tournament organisers should prepare for stricter data sovereignty requirements across the GCC.

Conclusion

The GCC's rapid emergence as a global gaming and esports hub presents tremendous opportunities for game developers, tournament organisers, teams, players, and investors. However, the regulatory and legal landscape is developing rapidly, not just to keep pace with the sector’s growth, but also increasingly to help drive it. Stakeholders who are involved in this space must ensure that they stay aware of these changes, to not only ensure that they remain in compliance with all legal responsibilities, but also to allow them to capture the many advantages that GCC countries are making available to industry players.

How Bird & Bird Can Help

Navigating the complex legal landscape in the GCC and in respect of gaming and esports requires specialised expertise. With offices in Abu Dhabi, Dubai and Riyadh supported by our network of worldwide offices, our multilingual teams combine deep industry knowledge with regional expertise to help clients succeed in this dynamic region.

Our award-winning esports practice has extensive experience in advising major games publishers, governing bodies, sponsors, league/event organisers, teams, and service providers on a wide range of issues. We were one of the first law firms to build a dedicated esports practice, built on our unique pedigree in sports, media, gaming and technology, and we are truly passionate about helping the industry.

We assist our clients in achieving the following key aims and objectives, among others:

• securing maximum value and security in key revenue-generating areas, particularly in sponsorship, broadcasting, and merchandising;
• ensuring that competitions are properly and effectively regulated, including the drafting of constitutional and regulatory documentation, including anti-doping and anti-corruption rules;
• managing esports talent, whether through player contracts or image rights exploitation;
• staging competitions, including everything from event hosting and platform agreements through to assisting in the design of commercial rights programmes;
• identifying and addressing gambling regulatory risks, which is a particular concern for platform operators and rights-holders;
• protecting the brands of rights-holders;
• ensuring the safety and security of participants and fans through appropriate safeguarding measures; and
• engaging with fans and customers, whether through advertising regulatory advice and copy clearance or assisting with e-commerce matters.

Please feel free to reach out to our Bird & Bird Middle East experts, Yannick Hefti-Rossier and Omar Sharief.
 

[1] https://www.pwc.com/m1/en/media-centre/2024/saudi-arabia-stands-to-gain-us13-billion-from-esports-by-2023.html

[2] https://www.wam.ae/en/article/b5fj3ld-esports-uae-promising-industry-with-global

[3] https://venturebeat.com/games/the-esports-world-cup-to-have-record-prize-pool-of-70m-for-2025-event-in-riyadh/

[4] https://www.dubaiesportsfestival.com/

[5] https://www.egluae.com/

[6] https://eesf.ae/en

[7] https://qesf.com/

[8] https://www.imarcgroup.com/gcc-esports-market#:~:text=The%20formation%20of%20the%20GCC,as%20a%20global%20esports%27%20hub

[9] https://www.pwc.com/m1/en/media-centre/articles/saudi-arabia-economic-potential-in-the-gaming-and-esports.html

[10] https://saudigazette.com.sa/article/624188

[11] https://www.esportsearnings.com/countries/sa

[12] https://gulfif.org/saudi-arabia-is-betting-big-on-esports-development/#:~:text=A%20recent%20survey%20presented%20by,played%20games%20with%20Arabic%20localization.

[13] Pan-European Game Information, the system used across Europe and the Middle East.

[14] Entertainment Software Rating Board, the system used in the US, Canada and Mexico.

[15] Most Gulf countries do not have their own unified video game rating system like PEGI or ESRB. Instead, they rely on a mix of approaches, e.g., Saudi Arabia’s General Commission for Audiovisual Media system, which reviews and rates games before they can be sold locally, and will restrict games that conflict with local cultural or religious values. The UAE generally accepts international ratings like ESRB and PEGI, but retailers and the National Media Council can restrict or ban specific titles. Other Gulf states like Kuwait, Qatar, Bahrain, and Oman mostly rely on international ratings but reserve the right to ban games locally.

[16] https://dubaigaming.gov.ae/gaming-residency/

[17] https://dmcc.ae/ecosystems/gaming

[18] The regulations vary significantly, with Saudi Arabia and the UAE being the most regulated (mandatory licensing with fees), Oman introducing free licensing, Kuwait having minimal regulations, and Qatar/Bahrain having no specific influencer frameworks. All require proper disclosure of partnerships and compliance with local advertising standards.