Gaming start-ups in Turkey have raised more than $1 billion in funding from 2018 to 2022, significantly outpacing fundraising in the Mena region, a study has shown.
The $1.2 billion attracted by these companies during the five-year period reflects to a compound annual growth rate of 263 per cent, and is substantially higher than the $59 million invested in their counterparts across the Mena region, start-up data platform Magnitt said.
Funding rose sharply in 2021 to hit $505 million – $155 million of which came from mega deals, or those worth $100 million and above. This was substantially higher than the $22 million raised in 2020, the Dubai-based research firm said.
This further rose by more than a quarter to $637 million in 2022, $255 million of which came from mega deals, the study said.
International participation has also increased, with 62 per cent of investors coming from overseas, a figure which, again, outpaced the Mena region, it said.
During that five-year span, the top three investors in Turkey's gaming sector included local venture capital firm Makers Fund and US-based Balderton Capital, which together invested $105 million, followed by UK-based Index Ventures with $99 million.
By comparison, the biggest investments in the Mena region came from the UAE's MSA Novo and Venture Souq, with $5 million and $4 million, respectively, and Saudi Arabia's Vision Ventures with $3 million.
Conversely, it is interesting to note that the funding gap between Turkey and the Mena region magnifies the huge untapped opportunity, particularly in the GCC, for the gaming industry to flourish, said Philip Bahoshy, chief executive of Magnitt.
“Turkey actually has a lower gaming penetration than Saudi Arabia and the UAE. In fact, the latter countries have a much higher gaming penetration than even the global standards,” Mr Bahoshy told The National.
“Overall, while Turkey is the biggest fish in the emerging venture gaming pond, it isn't wise to count Mena out of the game just yet, as the region's gaming industry is rapidly evolving as deal flow and funding continue to grow, supported by relatively stronger macro and currency stability.”
Gaming has become big business globally, gaining traction during the Covid-19 pandemic in 2020, with new technology providing an opportunity to reach a wider audience and develop new titles to cater to consumer demand.
It is a “fundamentally scalable global business” worth about $250 billion, growing at 13.1 per cent and driven by widespread smartphone, internet adoption and improved payment options, data from Magnitt showed.
Revenue in the global gaming market is projected to hit $212.4 billion by 2026, with mobile platforms continuing to lead the growth, market data platform Newzoo said in its August monthly update.
The growth will be underpinned by an increase in the gamer population, which is projected to rise by 6.3 per cent year on year and hit 3.38 billion in 2023, it said.
The Asia-Pacific region will have the biggest share with 1.79 billion, followed by the Middle East and Africa, Europe, Latin America and North America.
“Compared to the global landscape, the room for growth of gaming is immense,” Noor Haider, a senior research associate at Magnitt and author of the report, told The National.
“The Turkey-Mena dynamic can be a bridge between the global and regional gaming landscape offering [a] unique cultural diversity and investment opportunity.”
Total gaming revenue in Turkey was projected at $2.5 billion in 2022, supported by about 42 million digital players, consistent government support and a mobile penetration rate of more than 95 per cent that has helped to offset the impact of inflation and the devaluation of the lira, Magnitt said.
What is graphene?
Graphene is a single layer of carbon atoms arranged like honeycomb.
It was discovered in 2004, when Russian-born Manchester scientists Andrei Geim and Kostya Novoselov were "playing about" with sticky tape and graphite - the material used as "lead" in pencils.
Placing the tape on the graphite and peeling it, they managed to rip off thin flakes of carbon. In the beginning they got flakes consisting of many layers of graphene. But as they repeated the process many times, the flakes got thinner.
By separating the graphite fragments repeatedly, they managed to create flakes that were just one atom thick. Their experiment had led to graphene being isolated for the very first time.
At the time, many believed it was impossible for such thin crystalline materials to be stable. But examined under a microscope, the material remained stable, and when tested was found to have incredible properties.
It is many times times stronger than steel, yet incredibly lightweight and flexible. It is electrically and thermally conductive but also transparent. The world's first 2D material, it is one million times thinner than the diameter of a single human hair.
But the 'sticky tape' method would not work on an industrial scale. Since then, scientists have been working on manufacturing graphene, to make use of its incredible properties.
In 2010, Geim and Novoselov were awarded the Nobel Prize for Physics. Their discovery meant physicists could study a new class of two-dimensional materials with unique properties.
Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
The bio
Favourite book: Peter Rabbit. I used to read it to my three children and still read it myself. If I am feeling down it brings back good memories.
Best thing about your job: Getting to help people. My mum always told me never to pass up an opportunity to do a good deed.
Best part of life in the UAE: The weather. The constant sunshine is amazing and there is always something to do, you have so many options when it comes to how to spend your day.
Favourite holiday destination: Malaysia. I went there for my honeymoon and ended up volunteering to teach local children for a few hours each day. It is such a special place and I plan to retire there one day.
UAE currency: the story behind the money in your pockets
The drill
Recharge as needed, says Mat Dryden: “We try to make it a rule that every two to three months, even if it’s for four days, we get away, get some time together, recharge, refresh.” The couple take an hour a day to check into their businesses and that’s it.
Stick to the schedule, says Mike Addo: “We have an entire wall known as ‘The Lab,’ covered with colour-coded Post-it notes dedicated to our joint weekly planner, content board, marketing strategy, trends, ideas and upcoming meetings.”
Be a team, suggests Addo: “When training together, you have to trust in each other’s abilities. Otherwise working out together very quickly becomes one person training the other.”
Pull your weight, says Thuymi Do: “To do what we do, there definitely can be no lazy member of the team.”
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
The specs
Engine: 2.7-litre 4-cylinder Turbomax
Power: 310hp
Torque: 583Nm
Transmission: 8-speed automatic
Price: From Dh192,500
On sale: Now
Dubai works towards better air quality by 2021
Dubai is on a mission to record good air quality for 90 per cent of the year – up from 86 per cent annually today – by 2021.
The municipality plans to have seven mobile air-monitoring stations by 2020 to capture more accurate data in hourly and daily trends of pollution.
These will be on the Palm Jumeirah, Al Qusais, Muhaisnah, Rashidiyah, Al Wasl, Al Quoz and Dubai Investment Park.
“It will allow real-time responding for emergency cases,” said Khaldoon Al Daraji, first environment safety officer at the municipality.
“We’re in a good position except for the cases that are out of our hands, such as sandstorms.
“Sandstorms are our main concern because the UAE is just a receiver.
“The hotspots are Iran, Saudi Arabia and southern Iraq, but we’re working hard with the region to reduce the cycle of sandstorm generation.”
Mr Al Daraji said monitoring as it stood covered 47 per cent of Dubai.
There are 12 fixed stations in the emirate, but Dubai also receives information from monitors belonging to other entities.
“There are 25 stations in total,” Mr Al Daraji said.
“We added new technology and equipment used for the first time for the detection of heavy metals.
“A hundred parameters can be detected but we want to expand it to make sure that the data captured can allow a baseline study in some areas to ensure they are well positioned.”
