Articles | dayofdubai.com

Business

Economic Diversification is Gathering Pace in the UAE

The desire of the United Arab Emirates (UAE) to diversify its economy away from the energy sector is well documented, and the country has been diversifying into several new ventures. The UAE has been making significant moves in the financial technology sector, while the entertainment industry is also part of their long-term vision. Investing in the sector has become a regular trend among countries in the Middle East and North Africa (MENA), where entertainment is gradually moving away from traditional television. A more digital approach is gaining momentum and making a considerable impact on how people consume content, play games and experience live events.

Streaming Services are Booming in the UAE
One of the most significant changes in entertainment habits in the UAE has been the rise of streaming services. Platforms such as Netflix, Amazon Prime Video, Disney+ and Shahid have become a key part of everyday life for many residents. These services allow people to access and watch a vast library of movies, TV shows and documentaries at their own convenience. Streaming services have changed the way people view entertainment in the UAE. The old-fashioned way of watching TV, where viewers had to stick to fixed schedules, is becoming less popular. People now want to watch their favourite shows and movies in their own time.

As a result, traditional TV providers in the UAE are struggling to maintain their viewership. Many have even tried to adapt by offering on-demand content, but their services cannot compete with the lower prices and extensive libraries of global streaming platforms. For example, a monthly subscription to Netflix or Shahid is usually much cheaper than a typical satellite TV package, making these options more affordable.

The UAE is in the Midst of a Gaming Revolution
Gaming has emerged as one of the fastest-growing sectors in the UAE's entertainment industry. The Middle East's gaming market generated an estimated $3.4 billion in sales in 2021, with the UAE and Saudi Arabia leading the charge. This surge is largely driven by the popularity of mobile gaming, which has taken off due to the widespread use of smartphones and high-speed internet access. Competitive gaming – commonly known as eSports - has also gained significant traction in the region. Major eSports tournaments are being held in the UAE, which attract talents from around the world as well as large in person and online audiences.

Gaming is primarily seen as a leisure activity, but it is also becoming a professional pursuit for many young people in the UAE. The associated iGaming sector is also beginning to make its mark in the UAE, albeit discreetly. The best online casino in Dubai has previously operated in a grey regulatory area, but the government is making moves to address this. Platforms of this nature provide gaming experiences to locals and tourists, but they are currently licensed and regulated by authorities based in other jurisdictions. The UAE government has been focused on non-gambling gaming, but iGaming is on track to be a vibrant part of the country’s entertainment strategy in the future.

Experiential Venues & Theme Parks Blossom
Aside from digital entertainment, the UAE is also known for its world-class experiential venues, including theme parks and immersive entertainment centres.

Dubai and Abu Dhabi have poured significant investment into building attractions that blend cutting-edge technology with fun and family-friendly activities. One of the standout destinations is Yas Island in Abu Dhabi. It is home to world-renowned theme parks, including Ferrari World, Warner Bros World and Yas Waterworld. These venues are designed to entertain local residents, but they also attract millions of tourists every year and contribute significantly to the country’s tourism and hospitality sectors. However, the theme park competition is heating up, especially with Saudi Arabia's Six Flags Qiddiya now underway. UAE theme parks are stepping up their game by integrating augmented reality (AR) and virtual reality (VR) into their attractions to stay competitive.

Box Office & Live Entertainment Sectors Keep Growing
The UAE's entertainment scene is evolving, but that does not mean elements such as cinema and live events have become extinct. Box office revenues in the region reached around $800 million in 2021. That figure is still expected to grow, but the industry is in a state of flux due to changing consumer habits. Many people turned to digital content during the recent pandemic, watching movies at home instead of going to the cinema. Even though theatres have reopened, people have become accustomed to watching movies from the comfort of their homes, which has forced cinemas to become creative.

To make the movie-going experience more special, cinemas introduced new perks such as VIP seating, dine-in options and immersive IMAX screenings.

Live entertainment is also bouncing back, with concerts, festivals and cultural events returning in full swing. The UAE is a popular stop for international artists, and performances are back on the schedule now that the country’s borders are open again. Dubai Opera and Abu Dhabi’s Etihad Arena are also hosting various events, from classical music to pop concerts, ensuring there is something for everyone.