Dubai criticizes easy incentives and focuses on $1 billion GDP in 2033

Dubai is investing in an ambitious plan to become a global gaming hub, but the initial journey presents funding challenges. Faisal Kazim, Director of Future Foresight at the Dubai Future Foundation, confirmed in an interview with GamesBeat Live, presented by Xsolla, that the emirate does not offer the short-term financial incentives common in other emerging markets, and that there is active work to educate local investors about the sector.

The focus of the Dubai Program for Gaming 2033 is on attracting studios with promises of stability and cultural diversity, instead of immediate subsidies. Kazim detailed the philosophy behind this choice:

"We are doing this the hard way. Instead of just offering financial incentives, we are building relationships, collecting feedback, and creating an ecosystem that grows organically. That's how you ensure long-term impact."

Despite this strategy, Dubai recognizes that the local investment sector needs attention. Kazim stated that "it is our responsibility to host sessions to educate local investors on how to invest in games," indicating that gaming-focused venture capital is not yet fully established, which can be a barrier for smaller studios.

The ambition of Dubai is undeniable, and the plan has a clear governmental mandate. Launched in November 2023 by His Highness the Crown Prince, the Dubai Program for Gaming 2033 sets monumental economic goals for the year 2033: the creation of 30,000 jobs and an annual contribution of $1 billion to the emirate's GDP. The effort is unified by a task force that encompasses various governmental entities, from those responsible for policies and regulation to those providing spaces and telecommunications services.

Initial results already validate the long-term approach. In its first year of operation, the program drove a 16.6% growth in gaming companies in Dubai, which now total more than 350, with developers being the largest category. The city already hosts its first gaming unicorn, Yalla Group, listed on the NYSE and valued at over $1.3 billion.

The focus of Dubai is to create a "soft landing" for professionals and their families, offering stability and support services.

"We have governmental entities specifically focused on guiding teams in terms of—not just how to set up offices, but also things like showing them neighborhoods, right schools, and so on. We do the most we can to at least provide some safety net for this industry that has become so unstable, especially in recent years."

To bridge the talent gap, the American University in Dubai and the SAE Institute already offer bachelor's degrees in game development and design, with partnerships being forged for internship and mentoring programs with major global studios. Additionally, the debut at global events, such as the official pavilion at this year's Gamescom, sponsoring three indie developers, aims to increase visibility and demystify the western perception of the city.

Kazim noted the shift in perspective: "People end up coming to Dubai and one of the first things they tell us is, wow, we didn’t think Dubai was like this, and suddenly they start thinking, what if we open an office in Dubai?"

The Dubai Program for Gaming 2033 is a monumental government initiative, focused on building a sustainable ecosystem for the gaming industry. The initial success in business growth and attracting a unicorn is undeniable, but the immediate challenge of filling the local venture capital gap and educating investors will be crucial to ensure that the ambitious economic goals are achieved by 2033.