How Erbil’s Istikan Studio is Building a Global Game Development Footprint from Iraq

As the global video game industry continues to search for fresh perspectives and untapped markets, a small team in the Kurdistan Region of Iraq is quietly proving that compelling game design can emerge from anywhere. Operating out of Erbil, Istikan Studio has spent recent years building a rapidly expanding catalogue of titles ranging from cozy simulation games to strategic idlers. Backed by Iraqi telecom and digital solutions enterprise Tornet rather than outside venture capital, this seven-person developer is charting a distinct path forward, defying regional expectations, and finding an unexpected, massive audience on the other side of the globe.

Ahead of the upcoming Pocket Gamer Connects Jordan conference on November 7th and 8th, studio manager Danar Kayfi sat down to discuss the realities of running a game studio in Iraq, the fascinating story behind their breakout success in China, and the structural milestones the local ecosystem requires to help more regional teams achieve long-term sustainability.

Rooted in Culture, Designed for the World

The studio’s name pays homage to everyday life across the Middle East. Named after the istikan—the traditional small glass in which tea is served throughout Iraq and the wider region—the moniker reflects the team’s ambition to create games that become as ubiquitous and comforting as a daily routine. According to local lore, British colonial officers once referred to the glassware as the "East Tea Can," a linguistic evolution that eventually birthed the modern term.

Operating with a lean team consisting of three developers, three artists, and Kayfi—who manages the studio while simultaneously contributing to game design and programming—Istikan Studio functions through an agile internal structure. The team is divided into small pods of two, with each pod typically taking a project from initial concept to digital storefront release within a timeframe of three to six months. Every aspect of production, from initial design and core engineering to quality assurance, store submissions, and post-launch updates, is handled entirely in-house by their Kurdish-Iraqi crew.

This localized, self-contained development process heavily influences the identity of their software. Their current lineup reflects a distinct creative variety. Social Suspect, a murder investigation puzzle game, recently launched on iOS and Android. Meanwhile, General Idler, a deep idle strategy title where players conquer a world comprising 195 countries, has transitioned from its initial demo phase toward a full 1.0 release on Steam. Other titles, such as Bathroom Please!, a frantic obstacle-dashing game featuring panicked dashes through public spaces, and Istikan Chai, a cozy tea shop simulator, demonstrate a deliberate breadth in genre exploration.

Platform Strategy and the Surprise Phenomenon in China

When deciding which platforms to target for new releases, Istikan Studio approaches the process by examining player behavior first and working backward to the appropriate hardware. A cozy cooking game featuring short, relaxing gameplay loops naturally suits both portable devices like the Steam Deck and standard mobile phones, which explains why Istikan Chai made its way to both mobile and PC ecosystems. Conversely, deeply analytical strategy titles like General Idler lean on PC architectures, where dedicated players are willing to invest hundreds of hours into a single ecosystem.

However, the most remarkable chapter in the studio’s publishing history involves Istikan Chai and its unexpected reception in East Asia. More than 75% of the title’s Steam sales originate from China, a market the studio never deliberately targeted through paid marketing campaigns or specialized publishing partnerships.

When the game originally launched, the developers included Simplified Chinese localization from day one, but operated without any localized social media presence on platforms like Bilibili or WeChat. Despite language barriers—none of the team members speak Chinese—players from the region embraced the game enthusiastically.

Kayfi attributes this phenomenon to a universally appealing gameplay loop set within an unfamiliar, culturally rich backdrop. While mechanics centered around taking orders, preparing items, serving patrons, and upgrading a shop are broadly familiar to simulation fans, running a tea stall embedded in a traditional Middle Eastern bazaar offers a novelty that global audiences rarely encounter. Furthermore, the strong tea culture present in China created an immediate cultural bridge, with players resonating deeply with the hand-drawn artistic style and expressive character designs.

Building on this organic success, the studio intends to approach its upcoming culinary project, Tikka & Kebab, with a more intentional global strategy. Featuring a charcoal grill house set within a Kurdish bazaar, the game will include professional Chinese localization from its initial launch.

Navigating the MENA Funding and Talent Landscape

Operating a game development studio within Iraq comes with a unique set of structural advantages and logistical hurdles. Because Istikan Studio functions as the dedicated game development division of Tornet, its financial backing comes from an established operating business rather than volatile venture capital funding rounds. This corporate structure provides long-term operational stability, allowing the team to plan multi-year roadmaps rather than scrambling from one milestone payment to the next.

For independent developers across the broader Middle East and North Africa region, however, the financial landscape remains considerably more fragmented. Funding tends to cluster heavily around very early-stage prototypes or massive enterprise corporations, leaving a persistent gap for mid-sized indie studios trying to scale their operations.

Beyond financing, Kayfi points to structural challenges that have little to do with creative talent. Access to reliable global online banking systems, handling international store payouts, and managing basic developer account logistics remain complex obstacles within the region. Additionally, because a traditional local industry pipeline does not yet exist, finding experienced senior developers who have spent years working inside established commercial studios is exceptionally rare.

Despite these hurdles, the regional ecosystem is gradually strengthening. Community-led initiatives such as the Baghdad Gaming Lab are actively fostering local collaboration, hosting game jams, and connecting developers. Kayfi emphasizes that the regional games industry requires four foundational pillars to achieve widespread sustainability: practical business education covering store page optimization, wishlisting, pricing, and localization; the creation of professional studio environments where junior developers can learn collaboratively; expanded local communities and regular networking events; and streamlined access to international financial infrastructure.

Looking Ahead to Future Releases

Istikan Studio’s release schedule remains packed as the team looks toward the remainder of the year and into 2027. Following ongoing updates for Istikan Chai and the rollout of Bathroom Please!, the studio is actively developing BloooBleee, a chaotic multiplayer party game featuring squishy blobs constructing towers and attempting to shove competing players off platforms as rising floors threaten elimination. The team plans to showcase a playable demo of the party title at the upcoming Pocket Gamer Connects Jordan event.

The studio’s flagship upcoming project remains Tikka & Kebab, a cozy simulation title that shifts the culinary focus from a tea shop to a traditional charcoal grill house. With a demo scheduled for December and a full commercial release targeted for the first quarter of 2027, the project represents Istikan Studio’s continued commitment to combining culturally authentic local settings with widely accessible mechanical loops.

As more regional teams successfully navigate the complexities of international publishing and digital storefronts, studios like Istikan are helping lay the groundwork for a burgeoning Iraqi game development sector capable of speaking to audiences worldwide.