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The Middle East’s Online Entertainment Boom Is Forcing New Rules and New Expectations
If you found yourself in Saudi Arabia in the early 2000s, you’d be significantly surprised by the state of the country’s entertainment industry. The country’s entertainment ecosystem was tightly controlled and monitored, reflecting its conservative constitution, which impacted the general lifestyle. You wouldn’t have been able to attend cinemas because they were banned; live concerts were rare, and online entertainment was available only from informal or foreign sources. While the above is mostly specific to Saudi Arabia, by changing one or two variables, one could describe the entire Middle East. As the rest of the world, particularly the West, liberalized their entertainment sectors, these countries adopted highly conservative policies.
However, the situation is rapidly evolving. As if to catch up with the rest of the world, the Middle East is now relaxing some of its strict censorship policies. It is now experiencing an entertainment boom, particularly in online and digital entertainment. Countries are now developing policies to regulate what citizens can consume or create, rather than imposing outright bans. Continue reading to discover what is driving this recent boom, how Middle Eastern governments are reacting to it, and what the future holds for this vast region.
Historically, most Middle Eastern states have maintained censorship regimes governing online entertainment. Citizens had little access to it, and most had to go to great lengths to consume it. While many aspects have modernized, certain online entertainment sectors, particularly online gambling, remain heavily restricted in most regions. The heavy restriction is why the UAE online casinos available to residents are ones licensed offshore, offering bonuses and other freebies free from local scrutiny. The situation appeared to change in September 2023, when the General Commercial Gaming Regulatory Authority (GCGRA) was established to regulate iGaming, lottery, land-based casinos, and sports wagering. However, since its launch, only two licenses have been approved: one lottery license and the other for a land-based casino.
With iGaming still on the fringes, the only entertainment sources available were satellite television, physical cinemas, and imported media. Streaming services did exist, but were limited. In fact, for most people, these streaming services were of no use because they lacked local content, and regulatory uncertainty discouraged large-scale investment. By the mid-2010s, the situation started to change. The UAE, which was already popular for its numerous outdoor entertainment options, branched into the digital world when it welcomed Netflix in 2016. Spotify and Amazon Prime Video soon joined. By 2014-2015, YouTube creators and regional influencers were already monetizing at scale.
In 2016, Saudi Arabia launched Vision 2030, which repositioned entertainment and digital media as strategic tools for economic diversification and youth engagement. With this move, the government started to invest in infrastructure that legitimized online entertainment as both a cultural and commercial sector. For example, MBC Shahid, a popular catch-up TV service, evolved into a full-scale streaming platform producing Saudi-made originals that compete directly with Netflix. The remaining Middle Eastern countries also embraced online entertainment and experienced rapid growth in its consumption during this period. As of 2020, the region’s online and media entertainment market is valued at $30.35 billion and is expected to reach $47.03 billion by 2026.
Technology, demography, and culture; these are the three factors driving the adoption of digital and online entertainment in the Middle East. Saudi Arabia and the UAE now have smartphone penetration rates above 90% which creates huge demand for high-quality streaming. The government, on the other hand, must provide the infrastructure, like 5G and fiber networks, either directly or via enabling policies, to meet this demand.
The content dynamics in the Middle East are also very interesting. While major players like Netflix and YouTube remain influential, regional services such as Shahid, OSN+, and Starzplay Arabia are also investing heavily in localized programming. This strengthens cultural relevance and user loyalty, as viewers and streamers can find more relatable content that aligns with their lived experiences and is delivered in their language.
Additionally, esports is becoming increasingly mainstream, particularly in Saudi Arabia, which hosts large-scale tournaments that attract global viewership and investment. To support this momentum, a record $38 billion investment is being led by its National Gaming and Esports Strategy. Saudi Arabia has a massive gaming population with 23.5 million gamers. This represents 67% of the population, with 42% of these gamers being women. The Esports World Cup, launched in Saudi Arabia, has a mind-boggling prize amount of $60 million, making it one of the top destinations for gamers globally.
In addition to these campaigns, the country is developing Qiddiya City, a proposed global gaming district, which has attracted more than 30 gaming firms to relocate their headquarters to the region. This move is perfectly complementary to Vision 2030’s themes to entice youth and shift reliance from oil, among other factors.
Due to government efforts and a population willing to explore new entertainment channels, online streaming is becoming increasingly mainstream in the Middle East. The MENA-3 region consists of Saudi Arabia, the UAE, and Egypt, the three fastest-growing markets in the Middle East. The gaming culture is so extensive in these countries that, in 2023, they had approximately 68.4 million gamers. In fact, industry reports indicate that the Middle East accounts for more than 56% of the global esports market’s player base.
Emirati residents increasingly watch online and digital content. About 49% subscribe to over-the-top (OTT) streaming platforms, with nearly half spending significant time on video and gaming content. Online streaming and interactive media platforms are now key to digital advertising and subscription income. Streaming services now bundle content alongside broadband and mobile services to reach a larger customer base. Observers have also noticed that Riyadh, Dubai, and Doha appear to be competing to become entertainment capitals. They use various incentives to attract professionals, production companies, and investors for faster and better innovation in the industry.
As the boom continues to intensify, governments in Middle Eastern states are rethinking regulatory frameworks governing the creation and consumption of online entertainment. Regulations should not stifle creativity and expression, as this could deter investment and capital inflows. Governments’ main challenge will be navigating this terrain while maintaining traditional and cultural values.
In the UAE, media licensing and accountability have become central concerns, with Federal Decree-Law No. 55 of 2023 introducing stricter requirements for digital creators and influencers. Under this framework, individuals engaged in commercial content creation must obtain dual licensing and comply with national values; violations carry penalties of up to AED 2 million.
Saudi Arabia also has the General Commission for Audiovisual Media (GCAM), which regulates licensing terms and classifications for streaming services, promotes local content, and preserves cultural and moral norms. Among Gulf countries, influencer regulation has also been significantly expanded.
The surge in online entertainment in the Middle East is part of a broader shift from restriction to regulation, driven by a more engaged population and improved technological infrastructure. If the current situation persists, online entertainment will remain a significant force for creativity, regional competitiveness, and overall diversification.
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