Sports in the 21st century aren’t just played on fields or inside stadiums.
They’re happening on screens, in VR headsets, across digital platforms – and increasingly, they’re happening in both worlds at once.
This is the era of phygital sports – where the physical and digital collide to create entirely new ways to compete, to spectate, and to build industries.
The Emirates Esports Federation has become the 100th member of the World Phygital Community, signaling that the nation is not only participating in this global transformation, but helping to shape it.
And the timing couldn’t be better: in just a few months, Abu Dhabi will host the Games of the Future 2025, one of the most ambitious gatherings of phygital competition the world has ever seen.
What Exactly Is “Phygital”?
Think of a basketball match where athletes on the court are mirrored by AI-enhanced avatars, or drone racing where pilots compete in real life but spectators experience the action through immersive VR overlays.
Unlike traditional esports, where the game is entirely digital, phygital sports demand both athletic ability and digital skill. Competitors need stamina, speed, and reflexes – but also strategy, coordination, and an understanding of the digital interface.
It’s a format tailor-made for the next generation: young, digitally native audiences who grew up gaming, but still crave the drama of physical competition.
Why the UAE’s Membership Matters
Becoming the 100th member of the World Phygital Community cements the Emirates’ reputation as a front-runner in innovation and global trends.
The UAE has already made massive strides in esports. Dubai and Abu Dhabi have hosted international gaming tournaments, invested in esports training hubs, and rolled out youth initiatives to attract top talent.
By stepping into the phygital arena, the country is extending that vision – positioning itself at the frontier where sports, entertainment, and technology intersect.
Games of the Future 2025: A Global Stage
The Games of the Future 2025 aren’t just another tournament – they’re a proof of concept for a new industry. Scheduled in Abu Dhabi, the event will feature competitions that span multiple formats:
- Phygital football and basketball with AR overlays.
- Drone and buggy racing where AI and human pilots compete together.
- VR-powered combat games blending martial arts with immersive environments.
For spectators, it’s part sport, part digital theater.
For athletes, it’s the challenge of adapting to a hybrid arena.
For businesses, it’s a new revenue model waiting to be unlocked.
The Economic Ripple Effect
Sports have always been about more than just competition – they drive economies.
Esports alone is already a $1.5 billion industry worldwide, and phygital sports are expected to multiply that potential by merging digital monetization with physical infrastructure.
For the UAE, the benefits are wide-ranging:
- Global fans flying in for Abu Dhabi’s Games will fill hotels, restaurants, and entertainment venues.
- New skills in event management, esports coaching, VR production, and gaming infrastructure will emerge.
- Sponsorships, streaming rights, and even NFTs or digital collectibles tied to phygital competitions can generate new income streams.
- With nearly half of the Middle East’s population under 25, phygital sports offer an avenue to engage young people in a culturally relevant and economically impactful way.
Aligning with UAE Vision
This move fits into the UAE’s broader Vision 2030 strategies. The Emirates has consistently invested in future-forward sectors: renewable energy, artificial intelligence, fintech, and space exploration.
Phygital sports add another dimension – combining the soft power of culture and sports with the hard economics of technology and investment.
Just as the UAE transformed Formula 1 into a global spectacle in Yas Marina and turned Expo 2020 into a platform for innovation, it now has the chance to turn phygital sports into a signature industry of the future.
Our Take
Phygital sports may sound futuristic, but they’re arriving faster than many expect. For businesses, governments, and investors, this is an industry that combines three unstoppable forces:
- The global love of sports.
- The explosive growth of gaming.
- The monetization opportunities of digital economies.
By leaning in early, the UAE is creating a first-mover advantage. It’s not just about entertainment; it’s about economic diversification, youth engagement, and global visibility.
For businesses operating in the UAE, this shift is worth watching closely. From sponsorships to technology partnerships, from tourism tie-ins to financial advisory, the opportunities are vast.
