Middle East Toys Market Valued At USD 4.2 Billion In 2024, Growing At 8.17% CAGR

(MENAFN- IMARC Group) Middle East toys market size reached USD 4.2 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 9.0 Billion by 2033, exhibiting a growth rate (CAGR) of 8.17% during 2025-2033. Rising disposable incomes, expanding retail channels, and growing demand for educational and licensed character toys are driving the Middle East toys market.

Key Highlights

• Market size (2024): USD 4.2 Billion
• Forecast (2033): USD 9.0 Billion
• CAGR (2025–2033): 8.17%
• A significant shift toward educational and tech-enabled toys, with a strong demand for products that promote STEM skills and interactive learning.
• Rising disposable incomes and a large young population are the primary catalysts for market growth and increased consumer spending.
• The market is dominated by the 5 to 10 years age group, which accounts for a substantial share of consumer spending.

How Is AI Transforming the Toys Market in Middle East?

• Interactive Learning: AI is driving a major shift towards interactive, educational toys. For example, a recent UAE government-backed competition highlighted a robot that uses AI to help children with special needs, showcasing a strong regional focus on developmental technology.
• Growing Tech-Savvy Audience: A young, digitally native population with increasing disposable income is fueling demand for smart toys. In 2024, the Middle East's toy market value grew by a notable 13% to reach over $5.3 billion, with countries like Saudi Arabia and the UAE leading this tech-driven consumption.
• Governmental Support: Governments are actively promoting AI integration, with national strategies aiming to boost the technology's contribution to the economy. The UAE National Strategy for Artificial Intelligence 2031, for instance, seeks a significant 14% GDP contribution from AI.
• E-commerce Expansion: Online sales are a critical distribution channel for AI toys, making a diverse range of products accessible across the region. A survey found that over 51% of smart toy sales came from online stores, highlighting how e-commerce platforms are essential for reaching tech-savvy parents.
• Personalized Experiences: AI-powered toys offer personalized interactions, from language learning to adaptive gameplay, which is highly appealing to parents. Companies like LuxAI are developing products that can recognize and respond to a child's voice, creating a more engaging and customized play experience.

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Middle East Toys Market Trends and Drivers

• Digitalization and E-commerce: A major driver is the massive shift to online shopping. E-commerce platforms now offer a huge variety of products, making both international and local brands easily accessible to consumers.
• Focus on Educational Toys: Parents are increasingly prioritizing toys that offer learning value beyond simple entertainment. This trend is driving demand for STEM toys that help children develop critical thinking and problem-solving skills.
• Influence of Entertainment Franchises: The market is heavily influenced by popular global entertainment franchises. Licensed toys from movies and TV shows are a powerful driver of consumer demand and a key market segment.
• The“Kidult” Trend: There's a growing segment of adult collectors and hobbyists buying toys. This“kidult” trend, driven by nostalgia and social media, is creating new opportunities for collectible and niche product lines.
• Cultural and Social Relevance: Brands that offer culturally relevant products are seeing strong growth. This includes toys with Arabic language features or themes that align with local customs and traditions.

Middle East Toys Industry Segmentation:

The report has segmented the market into the following categories:

Product Type Insights:

• Action Figures
• Building Sets
• Dolls
• Games and Puzzles
• Sports and Outdoor Toys
• Plush
• Others

Age Group Insights:

• Up to 5 Years
• 5 to 10 Years
• Above 10 Years

Sales Channel Insights:

• Supermarkets and Hypermarkets
• Specialty Stores
• Department Stores
• Online Stores
• Others

Country Insights:

• Saudi Arabia
• Turkey
• Israel
• United Arab Emirates
• Iran
• Iraq
• Qatar
• Kuwait
• Oman
• Jordan
• Bahrain
• Others

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Recent News and Developments in Middle East Toys Market

• April 2025: The Middle East toy industry is embracing smart, tech-enabled toys featuring augmented reality (AR) and interactive learning, driving educational toy demand and enhancing cognitive development. Integration of such technologies is boosting user engagement and offering immersive play experiences.
• July 2025: India's toy exports to the UAE and wider Middle East market surged by 240%, driven by zero-duty agreements and a focus on IP-driven, child-safe innovations, positioning the region as a growing hub for high-quality, imaginative toys.
• September 2025: The Kids & Toys Expo in Riyadh showcased the latest in eco-friendly and sustainable toy manufacturing, highlighting the industry's shift toward green materials and highlighting new product lines that blend play with environmental responsibility.

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