The Middle East and North Africa (MENA) now account for nearly 20% of the global blockchain gaming workforce. This is the largest regional shift in the industry's history.
The Blockchain Game Alliance's 2025 State of the Industry report, presented at the Global Blockchain Show in Abu Dhabi on December 10, 2025, highlights a significant shift in global expertise. MENA rose from 0.5 percent in 2021 to 19.8 percent in 2025—the fastest growth in measurement history.
Explosive growth is changing the regional demographic structure.
BGA's fifth annual survey shows significant balancing in the blockchain gaming market. Western markets are contracting while other regions are investing in digital infrastructure and strengthening regulations.
The survey received 506 valid responses in 2025, down from 623 in 2024. The contraction of Western markets contributed to this decline. At the same time, real growth was observed in developing regions: Africa now has 5.5% of industry professionals, and Latin America has 11.9%. This indicates a clear shift away from the traditional dominance of Asia and Europe.
The share of women rose to a record 22.7 percent, up from 17.3 percent in 2024. The largest proportion was among professionals aged 25-44. Growth driven by the youth continues in the MENA and Africa regions. Notably, 40% of African respondents are under 25.
Professionals now consider regulatory clarity the most important factor for the future of blockchain gaming. A full 64.4 percent expect that policies and regulations will positively impact the industry. This reflects a growing confidence that legitimate operations require clear legal frameworks.
MENA countries have rapidly advanced in developing regulations. The United Arab Emirates, Bahrain, and Morocco are piloting or regulating stablecoin frameworks. This positions the region as a leader in payment innovation. For instance, Oman saw a 700 percent increase in digital payments year-on-year. Digital wallets now enable 74 percent of payment transactions and support blockchain-based economies with advanced financial systems.
High-quality game releases ranked second in key factors, with 29.5 percent supporting them. This indicates a shift away from previous speculative models. Sustainable, revenue-based business models were third at 27.5 percent. Stablecoins gathered 27.3 percent support as a tool for international payments and in-game transactions.
Studios have adopted product-focused operational models after a significant market contraction. Funding for blockchain gaming fell from over $10 billion in 2022 to $293 million in 2025. The focus is now on real revenues, not token speculation. Guild participation dropped from 20.7 percent in 2022 to 7.9 percent in 2025, as unsustainable models collapsed.
Fraud, funding scarcity, and artificial intelligence emerge as the biggest threats.
Despite the positive sentiment, the industry faces serious obstacles. Scams and fraud remain the biggest threats, with 36 percent of respondents mentioning them. Rug pulls and exploitation attempts hinder mass adoption, especially among risk-averse individuals.
Funding scarcity is another challenge, ranking second at 32.6 percent. Capital shortages have forced 80-93 percent of startups to close their doors since 2021. Major venture capital firms have halted new investments. Now studios must prove their profitability and sustainable business models.
Artificial intelligence brings both opportunities and risks. While 46 percent see AI as a growth driver in areas such as marketing and content creation, 38.9 percent fear the exploitation enabled by AI. Concerns include increased fraud, monotonous content, and the loss of authenticity in creativity.
Digital infrastructure strengthens the MENA region's competitive advantage.
The growth of the MENA region is based on more than just innovation-friendly regulation. The region's digital-native population is highly financially literate and willing to take risks, which is crucial for blockchain adoption. Nearly 45 percent of MENA traders start with demo accounts, indicating a high demand for financial education. Regional customers achieve high win rates and demonstrate the world's highest risk tolerance.
Modern payment systems play a crucial role. Several countries have implemented real-time settlement systems, automated clearinghouses, and mobile platforms. These measures achieve cost savings and shorter settlement times, enabling international value transfers that are essential in blockchain gaming economies.
Large game studios have taken note of the situation. Staff from companies like Ubisoft, Square Enix, Cointelegraph, Polygon Labs, DMCC Dubai, and leading regional financial institutions respond to BGA's survey. Traditional gaming firms and blockchain companies are approaching each other. Publishers are exploring Web3 opportunities and adopting new technologies without abandoning proven operational models.
Globally, stablecoins processed a total of $27.6 trillion in 2024, with MENA leading in retail payment innovation. The region's investment in regulation, infrastructure, and expertise makes it strong as blockchain gaming moves from the margins to the mainstream.
The industry is navigating a contraction towards recovery in 2026.
The prices of Web3 tokens fell by 90-95 percent from previous peaks. Studios are moving away from token-based models. Traditional revenue streams with blockchain features are now preferred. While many projects failed, the survivors show stronger fundamentals. Studios with robust intellectual property and sustainable economies attract investor interest after two years of tight financial markets.
The rise of MENA is happening as the industry matures. Regional developers benefit from stable regulations, diverse revenue sources, and capital from institutional investors and sovereign wealth funds.
Eyes are set on 2026, when the industry's attention will focus on whether high-quality game releases deliver the expected results. The MENA region's infrastructure, expertise, and regulatory environment give it a competitive edge. However, broad success depends on whether studios create games that people choose for their entertainment value—not just for financial incentives. The coming year will show whether MENA can claim its place as a driver of growth in blockchain gaming.