Market Overview:

The UAE (United Arab Emirates) entertainment and leisure market had been experiencing significant growth and development. The United Arab Emirates has a rising economy resulting in a thriving Leisure and Entertainment Industry driven by Increasing GDP and consumer spending. Entertainment industry's growth was fueled by an inflow of tourists to the country. The competitive rivalry is high with many direct and indirect competitors. Arcade and Trampoline in Saudi Arabia is expected to have a higher growth than UAE owing to larger addressable audience. The UAE was named as the world's top destination in 2022 for international travel expenditure.

The country's strategic location, favorable business environment, and proactive approach to developing world-class infrastructure have contributed to making it a significant player in the global entertainment and Leisure industry.

UAE Entertainment and Leisure Market Analysis

To diversify the economy and decrease reliance on the oil-based sector, both the government and private enterprises are making significant investments in entertainment facilities. This surge in the entertainment industry has been primarily driven by a substantial increase in tourist arrivals to the country.

Among the teenage and adult population, there has been a notable shift in entertainment preferences. Regardless of gender, bowling has emerged as the most favored activity. However, when it comes to Gen Y and Gen X females, their preference leans towards arcade gaming. They frequently visit entertainment venues with their families and children, making it a popular choice for quality family time.

The limited male presence in cinema visits can be primarily attributed to factors such as work schedules, financial constraints, and the prevalence of nuclear living arrangements among expatriates.

In 2022, the Indoor Theme Park Market in the UAE experienced significant growth, driven by the increasing customer inclination to invest in experiences rather than material products.

Implementing reward programs for millennials who win in bowling games and providing alcohol service can potentially enhance the popularity and participation of bowling games in the country.

Key Trends by Market Segment:

By Revenue Stream: The UAE's entertainment industry is poised for significant growth, primarily driven by the revenue generated from indoor theme parks, movie cinemas, and the OTT market. The rising popularity of immersive entertainment, such as virtual reality experiences and other captivating attractions, further contributes to this expanding sector.

By Number of Walk Ins:

The Entertainment Market witnessed 32.1 Mn Walk Ins in 2022. Movie Cinemas, Indoor Theme Parks, and the Arcade Market collectively dominated more than half of the total entertainment market, based on the number of walk-ins.

Competitive Landscape:

The competitive landscape in the UAE's entertainment and leisure market is vibrant and dynamic. Several local and international companies are actively competing to capture a share of this lucrative industry. Various sectors contribute to the entertainment and leisure market, including movie cinemas, indoor theme parks, water parks, arcades, live events, concerts, sports events, and more.

Key players in the movie cinema industry offer state-of-the-art theaters with advanced technologies and exclusive movie releases. Indoor theme parks and amusement centers strive to provide immersive experiences and attract visitors of all ages with thrilling rides and attractions. Water parks offer refreshing fun in the hot climate, while arcades and gaming zones cater to the gaming enthusiasts.

Moreover, technological advancements, such as virtual reality and augmented reality experiences, are being integrated into various entertainment offerings, creating new opportunities for companies to stand out in the market.

Recent Developments:

The UAE continues to invest in new theme parks and attractions to enhance its entertainment offerings. For instance, Warner Bros. World Abu Dhabi opened in 2018, featuring themed zones and rides based on popular Warner Bros. characters. Other parks like Dubai Parks and Resorts, which includes Motion gate Dubai and Bollywood Parks, have also expanded their offerings.

Over-the-top streaming services have gained significant traction in the UAE. International platforms like Netflix, Amazon Prime Video, and Disney+ have seen increased subscriptions, while regional services like Shahid and Starzplay have also grown their user base by offering Arabic content.

The UAE has witnessed a surge in immersive entertainment experiences using virtual reality (VR) and augmented reality (AR) technologies. Various entertainment venues and events have incorporated VR/AR attractions to provide unique and engaging experiences to visitors.

The cinema industry in the UAE has continued to grow, with modern multiplexes offering the latest blockbusters and innovative technologies to enhance the movie-watching experience.

The UAE theme parks are at the forefront of harnessing real-time information management technology to elevate the visitor experience. With millions of guests relying on mobile apps to check ride wait times and order concessions, operators can implement dynamic pricing during peak and off-peak hours, ensuring better visitor safety and security.

Future Outlook:

The integration of cutting-edge technologies, such as virtual reality, augmented reality, and artificial intelligence, is expected to revolutionize the enterainment experiences offered in the UAE. This will create novel and immersive attractions, appealing to both local and international audiences.

Saudi Arabia is expected to surpass the UAE in terms of total entertainment industry size based on revenue. The Arcade and Trampoline sectors in Saudi Arabia are projected to experience higher growth compared to the UAE, primarily due to a larger addressable audience in the country.

In 2022, the UAE outperformed Saudi Arabia in the Bowling Market based on the revenue generated. However, looking ahead, Saudi Arabia's Bowling Market is anticipated to expand at a faster rate compared to the UAE.

The UAE and KSA are anticipated to lead remarkable growth in comparison to the global Entertainment and Cinema Market. While the global cinema box-office revenues and entertainment market are more susceptible to recessionary impacts, the MENA region, including the UAE and KSA, is expected to demonstrate more resilience and stability.

The UAE is increasingly emphasizing sustainability and eco-friendly practices across various sectors, including entertainment. Theme parks and leisure destinations are likely to adopt more sustainable approaches to minimize their environmental impact.