Game on: Is Dubai's gaming visa a gain for the emirate and loss for India?

Agarwal also pointed out that Dubai is a dream destination for many individuals and startups and with the United Arab Emirates government offering lucrative benefits for the growth of its gaming sector, it is expected to put pressure on Indian gaming companies.

The sentiment was echoed by esports content company AFK Gaming's co-founder Nishant Patel, who said the gaming visa creates competition for top talent who may consider relocating to Dubai for better opportunities. AFK Gaming had partnered with the Saudi Esports Federation last year.

Patel said that average revenue per user (ARPU) for Indian gaming companies has historically lagged that of global peers. "In a scenario where staff compensation increases on account of competition from Dubai-based companies, companies that are building games for Indian gamers may have to find new ways to adapt or else face margin contraction."

The Indian gamer is price sensitive as ARPU for India's gaming industry was said to reach Rs 1,600 by FY23 according to a November 2023 report by Google and Lumikai, a gaming-focused venture capital fund. In comparison, the ARPU in China stood at $64 (approximately Rs 5,280) as of October 2023, according to industry estimates.

With the possibility of India's gaming talent looking to shift to Dubai for better opportunities, Indian companies may tweak their strategies, said STAN's Chadha.

"This talent migration might compel Indian gaming companies to enhance their services in terms of better compensation, creator-friendly policies, early monetisation moves, and investing more in local talent development to retain their workforce," he added.

Agarwal also thinks that Indian companies will need to offer more incentives and ‘reasons to believe’ to retain good talent in India.

Patel said that he is aware of two major Indian esports teams that had considered moving their players to Dubai to enable them to participate in tournaments like the PUBG (PlayerUnknown's Battlegrounds) Mobile World League.

However, Agarwal said that it is too early to say how many takers there would be for Dubai's gaming visa. "Many individuals and firms are still sitting at their drawing board to identify how best they can leverage this opportunity. We need to realise that Dubai is quite expensive, so a proper go-to-market strategy is critical," he added.

An attractive option

On the other hand, Patel said that Dubai's gaming visa coupled with the better infrastructure, financial incentives (income is not taxed) and a global platform makes the emirate an attractive option.

Indian gaming talent will also be lured by Dubai's competitive pay for skilled professionals, something the Indian talent pool currently does not enjoy, said Chadha.

An average Indian gaming creator earns around Rs 30,000-40,000 per month, whereas an Emirati creator earns around Rs 80,000-1 lakh a month, noted Agarwal. "Also, there are far fewer creators in Dubai compared to India. Since Dubai is a dream country for many, we can expect many gaming creators catching the next flight (to Dubai) to identify opportunities for themselves."

However Agarwal added that Dubai at present is focused more on attracting indie (independent) game developers who can develop their games within the UAE.

Two other factors according to Patel that could attract gaming talent. "The government of Dubai proactively supports the gaming industry, by hosting numerous gaming events to create ample growth opportunities for gaming professionals. This makes Dubai a gaming hotspot. Also, Dubai is the hub for emerging web3 companies and the Dubai gaming visa provides significant growth opportunities for entrepreneurs to join the growing ecosystem," Chadha said.

India's gaming talent

Dubai has the potential to attract a diverse range of gaming talent from India, including game developers, designers, content creators, esports athletes and more, said co-founder and MD of Nazara-owned Nodwin Gaming Akshat Rathee, who had worked closely with the Dubai government and Helal Saeed Al Marri (director-general of Dubai's Department of Economy and Tourism) on the gaming visa initiative.

According to Patel, game developers and programmers from India familiar with game engine Unity and UEFN (Unreal Editor for Fortnite is a PC application for designing, developing, and publishing games), among others, will fare better when it comes to Dubai attracting gaming talent from India.

Esports athletes and content creators/streamers for games like BGMI (Battlegrounds Mobile India), VALORANT and Free Fire, graphic designers, animators, project managers, producers and even marketing and PR experts that have worked on promoting games will be other gaming talent that Dubai could attract.

"Indian gaming professionals are renowned for their expertise in esports management, game design, game programming, 3D modelling and gaming animation," pointed out Chadha.

Rathee said that Dubai's gaming visa will enable Indian companies and individuals to benefit from global exposure and potential partnerships that can bring value to the country’s gaming ecosystem. "As India's gaming market continues to evolve, the Dubai gaming visa can act as a catalyst in cultivating a thriving and sustainable ecosystem in the country," he added.

India's gaming industry is expected to hit a CAGR (compound annual growth rate) of 22 percent to reach $3.9 billion by 2025, according to a 2022 KPMG report.