UAE’s Entertainment and Leisure Industry: Soaring to New Heights with Projected ~10% Growth by 2027: Ken Research

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In 2022, the Entertainment Market in the UAE experienced a significant influx of ~30 Mn visitors. Both the government and private sector have made substantial investments in entertainment facilities as part of a strategic move to reduce reliance on the oil-based economy.

STORY OUTLINE

  • UAE’s Thriving Entertainment Market: The UAE’s leisure and entertainment industry are experiencing significant growth, fueled by an ascending economy, higher consumer spending, and its popularity as a major regional tourist destination
  • Diverse Entertainment Options: Tourists visiting Dubai and Abu Dhabi seek various entertainment options, driving demand in the industry, especially in movie cinemas, indoor theme parks, and arcades.
  • Technology’s Impact: The industry is undergoing a profound transformation with the widespread adoption of cutting-edge technologies like virtual reality, online streaming, and extended reality (XR), providing unique and immersive experiences.
  • OTT Market Growth: The MENA region’s OTT market is thriving, with the increasing availability of high-speed internet, widespread use of digital devices, and a growing digital audience for entertainment content.
  • Future Innovations: The UAE’s entertainment and leisure industry is expected to witness further innovations, such as contactless ordering in cinemas using AI robots, self-ordering kiosks, vending machines, or online ordering apps, enhancing the overall consumer experience.

The United Arab Emirates is witnessing an ascending economy, leading to a flourishing Leisure and Entertainment Industry propelled by the growth of GDP and higher consumer spending. The leisure and entertainment industry in the region is currently experiencing a profound transformation. Cultural changes among the younger generation have sparked significant interest, and there is a growing demand for local Arabic content, which is expected to drive substantial growth in the regional media sector.

1. Visitors Unleash Fun: How Tourism Drives UAE’s Entertainment Industry!

UAE Leisure & Entertainment Market

Discover Number of Walk ins in UAE

In 2022, the Entertainment Market in the UAE witnessed an impressive ~30 million walk-ins, with the country’s status as a major regional tourist destination playing a pivotal role in driving this footfall.

Tourists flocking to Dubai and Abu Dhabi seek diverse entertainment options during their visits, creating significant demand in the industry.

Despite the pandemic-delayed Expo 2020, expectations were high that the event would attract millions of visitors, providing a substantial boost to the entertainment sector. Movie Cinemas, Indoor Theme Parks, and Arcades collectively dominated the market, capturing over half of the total entertainment share based on the number of walk-ins in 2022.

2. UAE’s Thriving Leisure Market Driven by Mega-Theme Parks!

UAE Leisure & Entertainment Market

Explore Trends in the UAE Indoor Theme Parks Market

The rapid adoption of technology has given rise to online streaming platforms, virtual reality experiences, and gaming, expanding the entertainment landscape. The MENA region’s surge in OTT services can be attributed to various factors, such as the growing accessibility of high-speed internet and the widespread adoption of digital devices. These elements have significantly contributed to the industry’s expansion in the area.

As of 2021, the number of active social media users in the UAE reached around ~9 million, indicating a growing digital audience for entertainment content. Increase in original Arabic content creation, rising partnerships, and increased digital spending will boost the OTT Market in UAE.

3. Revolutionizing the UAE Entertainment and Leisure Industry: Technology at Its Finest

The UAE’s entertainment and leisure industry are undergoing a remarkable transformation through the widespread adoption of cutting-edge technologies like the metaverse and extended reality (XR). This innovation is paving the way for exciting new avenues, elevating the consumer experience with unique and immersive entertainment offerings.

To promote contactless ordering, Cinemas are expected to incorporate AI robots, self-ordering kiosks, vending machines, or online ordering app.

In conclusion, the UAE’s Leisure and Entertainment Industry is flourishing, driven by its ascending economy and higher consumer spending. The convergence of technological advancements, the surge in local Arabic content demand, and the growing tourism sector all contribute to the sector’s transformation. With innovations like virtual reality and online streaming shaping the landscape, the industry promises to provide an unparalleled and immersive experience for visitors and audiences alike. As the region continues to embrace technology and cultural shifts, the future of entertainment in the UAE looks promising and dynamic.

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