The UAE is shaking up its entertainment scene. Forget just fancy cars and luxury experiences – 2024 saw the country issue its first lottery license. This signals a major shift – the region is embracing gaming as a legitimate form of fun and, potentially, a big earner.
This isn’t a random move. The UAE boasts the highest revenue per gamer in the Middle East and North Africa (MENA), highlighting the region’s passionate player base.
That passion extends to eSports – the MENA region, including the UAE, makes up a whopping 56% of the global market, with a staggering 377 million gamers calling it home.
So, What’s Fuelling This Growth?
Two key factors – a young, tech-savvy population with sky-high mobile internet usage creates a perfect storm for online and mobile gaming. And, the establishment of the General Commercial Gaming Regulatory Authority (GCGRA) showcasing their commitment to responsible, sustainable industry growth.
The GCGRA oversees licensing for
- lotteries,
- internet gaming,
- sports betting,
- and even land-based facilities.
And, What Exactly Is A Gaming License in the UAE?
The UAE is now offering dedicated gaming licenses to help you build your dream gaming business. These licenses cater to the growing demand from young entrepreneurs venturing into game development and online gaming platforms.
What Does The UAE Gaming License Cover?
While the global gaming industry is expanding rapidly, the UAE takes it a step further. Their gaming licenses cover a wide range of activities beyond just game development.
Here are some examples:
- E-commerce through websites: Sell your games and gaming merchandise directly to customers within a secure online environment.
- Gaming production services: Offer your expertise in game development to other companies or create your original titles.
- Gaming community management: Build and manage thriving online communities for gamers to connect and share their passion.
- Virtual Reality and advanced graphic gaming: Develop cutting-edge games that utilize the latest technologies to offer truly immersive experiences.
Top UAE Free Zones for Gaming Licenses
| Free Zone | Gaming License Availability | Notable Features |
| twofour54 (Abu Dhabi) | Yes | Offers a variety of gaming licenses for investors. |
| Sharjah Media City | Yes | Provides a specialized gaming package for investors. |
| RAKEZ | Yes | Offers gaming licenses to investors. |
| IFZA (Dubai) | Yes | Offers gaming licenses. |
| DAFZA (Dubai) | Yes | Offers gaming licenses. |
| DMCC (Dubai) | Yes | Offers gaming licenses. |
Key Benefits of Gaming Licenses in UAE Free Zones
The UAE gaming license goes beyond just developing games. You can also offer a range of related services, such as:
- Growth Opportunities: The electronic gaming format offers significant growth potential in the UAE.
- Startup and Freelancer Opportunities: Startups and freelancers with gaming backgrounds can develop and sell games using a gaming license.
- Diversified Gaming Services: Investors can set up gaming platforms, kiosks, and conduct events in malls, colleges, and other venues.
- Specialized Packages: Free zones offer various gaming license packages tailored to the needs of gaming enthusiasts and software developers.
- Community Management Solutions: Foster a sense of community and engagement among gamers.
- Social Media Management And Marketing: Reach your target audience and build a loyal following. Electronic gaming card printing and management: Create and manage unique gaming cards for your players.
Additional Requirements:
- There are specific documentation requirements for gaming license approval in the UAE.
- Experienced business consultants at Safari Star can guide you through the application process and ensure compliance with all necessary regulations.
RAKEZ: The Most Preferred Free Zone For UAE Gaming Market
RAKEZ offers a compelling package for gaming entrepreneurs looking to establish a presence in the UAE. With a comprehensive suite of gaming licenses and a special promotion featuring an executive office, RAKEZ provides a streamlined solution for launching your gaming business.
The RAKEZ Advantage:
- All-Inclusive Package: RAKEZ offers a comprehensive gaming license package that includes not only the core gaming license but also essential trade licenses for e-commerce, trading, and media activities. This means you can streamline your operations and focus on growing your business.
- Promotional Offer: The special promotion package with an executive office offers excellent value for money, making it an attractive option for entrepreneurs.
- Simplified Documentation: RAKEZ simplifies the documentation process, ensuring a smoother application experience. Their business team will guide you through the necessary steps and assist with submitting the required documents.
Types Of Gaming Licenses in RAKEZ Free Zone
| Activity | Code | Description |
| E-Commerce Through Websites | 4791018 | For online sales of gaming products or services. |
| Gaming Production Service Providers | RAKEZ9000923 | For game development and related services. |
| Gaming Community Management | RAKEZ9000917 | For managing online gaming communities. |
| Gaming – Localization Services | RAKEZ9000921 | For language translation and cultural adaptation of gaming content. |
| E-sports Organization | 100102 | For owning or managing professional eSports teams. |
| Electronic Card Wholesale | 4652006 | For reselling electronic gaming cards used in kiosks or gaming centers. |
Key Requirements:
- Business Brief: A detailed business brief outlining your gaming venture must be submitted for approval by the RAKEZ Media Zone Director.
- Residence Visa (for Zero Visa Package): If you’re opting for the zero visa package, the manager or investor must have a valid UAE residence visa.
If you’re looking to establish a successful gaming business in the UAE, RAKEZ is an excellent choice. Book a free consultation with Safari Star for an all-inclusive package, to know more about promotional offers, and simplified processes. We can provide you with a pathway for a solid foundation for your gaming venture.
Commercial Gaming: What Entrepreneurs Need to Know about Taxes?
With the launch of the General Commercial Gaming Regulatory Authority (GCGRA), the door is now open for casinos, online gaming platforms, and other exciting ventures. This is great news for entrepreneurs looking to tap into this growing market, but there are some important things to consider, especially when it comes to taxes.
The Current Environment: A Bit Cloudy
Right now, there’s no specific tax framework designed for commercial gaming in the UAE. It’s a new industry, so the government is still figuring things out. This might seem a little uncertain, but it also presents an opportunity! You can be among the first to navigate this exciting new territory.
What We Do Know (So Far):
While there’s no dedicated gaming tax yet, some existing regulations will likely apply to your business. Here’s a breakdown:
- Value Added Tax (VAT): Most businesses in the UAE pay VAT, a tax on the value added to goods and services at each stage of production. This will likely apply to your gaming operations as well.
- Corporate Tax: If you establish a physical presence in the UAE (like a casino), you’ll need to pay corporate tax on your net profits. This rate is currently set at a competitive 9%, with a potential top-up to 15% for large multinational groups.
- Customs Duty: If you’re importing equipment or materials (like fancy gaming machines), you’ll need to factor in customs duties.
The Big Question: How Will VAT Work?
VAT is the biggest question mark right now. The law states that VAT applies to “pretty much any activity,” and gaming is no exception. But how exactly will it be calculated?
Here’s the concern – If VAT is applied on each bet, it could make things unprofitable for both you and your customers. Imagine playing blackjack for hours with the same stake – that could mean getting taxed multiple times on the same money!
A Possible Solution: Taxing the Margin, Not Each Bet
Luckily, there’s a solution. Other countries with established gaming industries often tax the “periodic margin” – basically, the overall profit earned over a period like a day or month. This is a much more sustainable approach for everyone.
Stay Tuned: More Developments are Coming
As the commercial gaming industry in the UAE grows, we expect more clarity on taxation. There might even be a new tax specifically designed for gaming activities. One thing’s for sure – how your business is taxed will be a key factor in its success.
The Takeaway: Be Prepared, Stay Connected
While navigating a new commercial license or even the tax system in a new industry can be challenging, it’s also exciting!
By staying connected and informed about the latest developments as well as seeking professional advice, you can ensure your gaming venture thrives in the UAE.
For more details, book a free consultation with Safari Star business setup and financial experts today!
