The Middle East and North Africa (MENA) now represent nearly 20% of the global workforce in the blockchain gaming sector. This is the most significant regional shift in the history of the industry.
The State of the Industry Report 2025 of the Blockchain Game Alliance, published at the Global Blockchain Show in Abu Dhabi on December 10, 2025, highlights a radical change in the global distribution of talent. The share of MENA has increased from 0.5% in 2021 to 19.8% in 2025 — the fastest growth since monitoring the industry began.
Explosive growth transforms regional demographics.
The fifth annual BGA survey signals a fundamental rebalancing in the blockchain gaming landscape. A contraction is observed in Western markets, while other regions accelerate the development of digital infrastructures and strengthen their regulatory frameworks.
In 2025, the survey collected 506 valid responses, fewer than the 623 collected in 2024. This decrease was caused by the contraction of Western markets. However, emerging regions show real growth: Africa now accounts for 5.5% of industry professionals and Latin America 11.9%, indicating a significant shift away from the traditional dominance of Asia and Europe.
Female participation has reached a record 22.7%, up from 17.3% in 2024. The highest concentration is among professionals aged 25 to 44. Youth-led expansion continues in both MENA and Africa. In particular, 40% of African respondents are under 25 years old.
Professionals now consider regulatory clarity the most critical factor for the future of blockchain gaming. An overwhelming percentage, 64.4%, expects policies and regulations to positively contribute to the sector. This shows a growing conviction that legitimacy depends on clear legal frameworks.
MENA countries have acted swiftly in developing regulations. UAE, Bahrain, and Morocco are experimenting with or regulating frameworks for stablecoins. This places the region at the forefront of payment innovation. For example, Oman has seen a 700% increase in digital payments in just one year. Digital wallets now enable 74% of transactions, supporting blockchain-based economies with advanced financial systems.
High-quality game launches are in second place among the main drivers with 29.5%. This indicates a move away from the speculative models of the past. In third place are sustainable and revenue-oriented business models, with 27.5%. Stablecoins received 27.3% of the votes as key tools for cross-border payments and in-game transactions.
Studios have adopted a product-first approach following the sharp market contraction. Funding in blockchain gaming has collapsed from over $10 billion in 2022 to $293 million in 2025. Studios are now focusing on real revenues instead of token speculation. Guild participation has dropped from 20.7% in 2022 to 7.9% in 2025, following the failure of unsustainable models.
Fraud, funding shortfalls, and artificial intelligence emerge as major threats.
Despite the momentum, the industry faces significant hurdles. Scams and fraud continue to pose the primary threat, cited by 36% of respondents. Rug pulls and fraudulent schemes still hinder mass adoption, especially among risk-averse players.
The funding shortfall represents another challenge, in second place with 32.6%. The lack of capital has forced 80% – 93% of startups to close since 2021. Major venture capitals have suspended new investments. Now studios must demonstrate profitability and sustainability.
Artificial intelligence represents both a promise and a risk. Even 46% see it as a growth driver for marketing or content creation, while 38.9% are concerned about abuses made possible by AI. Among the fears are increased cheating, generic content, and a potential loss of creative authenticity.
Digital infrastructures fuel the competitive advantage of the MENA region.
MENA's growth reflects more than just regulation favorable to innovation. The region's digital-native population boasts high financial literacy and a strong risk appetite, crucial factors for blockchain adoption. Almost 45% of MENA traders start by using demo accounts, signaling a strong demand for economic education. Regional clients show high success rates and exhibit the highest risk appetite globally.
Modern payment systems play a key role. Many countries have implemented real-time settlement systems, automated clearinghouses, and mobile platforms. These tools help reduce transaction costs and shorten settlement times, enabling cross-chain value transfers crucial for blockchain gaming-related economies.
Leading studios have taken note. Among the respondents to the BGA survey are employees from Ubisoft, Square Enix, Cointelegraph, Polygon Labs, DMCC Dubai, and major regional financial institutions. Traditional gaming companies and blockchain firms are converging. As publishers explore Web3, they integrate new technologies without abandoning established models.
Globally, stablecoins processed $27.6 trillion in 2024, with MENA leading payment innovation in retail. The region's focus on regulation, infrastructure, and user specialization puts it at an advantage as blockchain gaming shifts from niche to mainstream market.
The industry faces contraction while aiming for a recovery in 2026.
Web3 token prices have dropped by 90%-95% from previous highs. Studios are moving away from token-driven models and now prefer traditional revenues enriched by blockchain elements. Although many projects have failed, survivors demonstrate stronger fundamentals. Studios with strong intellectual property and sustainable economies attract investor interest after two years of limited funding.
The rise of MENA comes as the sector consolidates and matures. Regional developers can rely on stable regulation, revenue diversification, and capital from institutional investors and sovereign funds.
Looking ahead to 2026, the industry's main challenge will be understanding whether quality game launches will finally deliver the expected results. The infrastructure, talent, and regulatory environment of MENA provide the region with a competitive edge. However, true success will depend on the ability to create games chosen for their entertainment value — not just for economic incentives. Next year will reveal whether MENA can truly become the growth engine for blockchain gaming.
