Online gambling industry ready to invest, expert says

United Arab Emirates – There are countless opportunities in the online gambling industry, which are only growing, and with the right advice, the right strategies and the right choice of markets, it’s a piece of cake for investors around the world, says Chaddy Kirbaj, Deputy Director of Swissquote Bank Dubai.

Speaking to Khaleej Times, he explained that the ‘golden age’ of the gaming industry is ahead of us and the industry is ready for investors. The robust growth of the gaming market is mainly the result of a two-pronged approach by governments and industry.

“In the UAE, for example, the uptrend is driven by massive investment in the tech ecosystem, enthusiastic government support for building a digital economy, superior 5G infrastructure, access to technology via young people and healthy consumer spending, supported by sound legal regulations and a diversified economy,” he said.

At the same time, the sector has seen a lot of consolidation through mergers and acquisitions adopted by many key players – a trend that is expected to develop mainly in Asia-Pacific countries such as China, Japan and the South Korea, which together are expected to be the gaming industry’s largest market. tech stocks will stabilize at lower levels in 2022,” he noted.

According to Fortune Business Insights, the global gaming market will grow at a CAGR of 13.2% between 2021 and 2028 to reach a valuation of $545.98 billion by 2028, from a market that stood at $203.12 billions of dollars in 2020. that the global games market includes segments that are exceptional growth engines on their own – such as mobiles, tablets, browser PCs and consoles – with a vast market size and d enormous potential.

The mobile gaming sector was valued at $93.2 billion in 2021 with 7.3% year-on-year growth, while the tablet segment grew 2.6% year-on-year to $11.7 billion of dollars. Overall, mobile gaming segment revenue accounted for 52% of the global gaming market in 2021.

Kirbaj revealed that the gaming market in the United Arab Emirates generated $344 million in 2020, from mobiles, consoles and PCs. At least 68% of the online population in the UAE indulges in gaming-related video content, while 32% of men and 22% of women said they actively spend money on games. Esports is another growing segment in the UAE, with 10% of the online population actively participating.

“The popularity of these platforms has helped position the UAE as one of the most promising online gaming markets in the world, which is expected to generate consistently higher revenues in the years to come,” Kirbaj said. . “This follows estimates that the gaming market in Saudi Arabia, the United Arab Emirates and Egypt will reach $3.1 billion by 2025 – in 2021, Saudi Arabia accounted for 60% of the trio’s total revenue , the United Arab Emirates 29.6% and Egypt 9.8%”.

In such a promising environment, it is essential that game industry investors choose the market and segment carefully, he stressed. “Swissquote’s online gaming certificate, for example, invests in companies that develop online games and distribute video games and esports. This thematic trading certificate has generated nearly 40% returns since its inception in September 2017 – and it is important to remember that such investments are long-term and carry moderate risk.

He explained that the advantage of such a theme is that it offers the best of everything – combining leading gaming stocks such as Nintendo, Bandai Namco, Microsoft, Sony and Roblox with a diverse geographical positioning that compensates for the risks.

“However, due diligence is also critical when it comes to timing and stock valuation, especially in situations like the current bear market, as gaming funds and stocks are highly correlated to tech stocks and the performance of the game. NASDAQ,” he warned. “Two of the largest exchange-traded funds (ETFs) in the gaming industry in the United States – ESPO by VanEck and HERO by Blobal X – have lost 23% and 20% respectively of their value since the beginning of the year (YTD), while the NASDAQ itself has lost more than 28% since the start of the year.

He further explained: “That is why it is vital for investors to be selective in their choice of ETF securities and not to bet on the whole index but to choose a performing stock with fundamentals. solid by itself. Investors should also review the cost details to find out if there are any fees and the prospect of a dividend yield.

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