Metaverse technology could add $55 billion to the economies of Saudi Arabia and the UAE by 2035, new research from Facebook parent company Meta Platforms suggests.
As countries adopt the Metaverse, the innovation could bring in up to $38.1 billion and $16.7 billion to the Kingdom and Emirates, respectively, by the middle of the next decade, according to a report from consultancy Deloitte.
The minimal impact would be $20.2 billion for Saudi Arabia and $8.8 billion for the UAE, the study said.
In Mena markets such as Egypt, the region’s most populous country, the metaverse is expected to have an impact of $11.6 billion to $22 billion.
Morocco is expected to benefit between $2.6 billion and $5 billion, and Jordan between $900 million and $1.7 billion.
Sectors expected to benefit greatly from adopting the metaverse include tourism, retail, real estate and gaming, the report said.
“The Metaverse is a collection of technologies, platforms and products built by a variety of companies, opening up creative and commercial opportunities in the Middle East, North Africa and around the world,” said Meta’s Middle East Regional Director. Fares Akkad said Africa.
“These technologies may be virtual, but their economic impact is very real. It can only be achieved through hard work and cooperation.”
The Metaverse is based on Web3 and is a virtual space where people represented by avatars interact. You can use new technologies to reshape and streamline your workplace and business operations.
It is not yet known at what stage the metaverse will be adopted by 2035, but businesses and governments are capitalizing on its potential.
Saudi Arabia, UAE, Bahrain and Qatar have implemented regulations encouraging the use of Web3 technology as part of their digital economy transformation programs.
Saudi Arabia, the Arab world’s largest economy, is in the midst of a diversification drive based on the Vision 2030 agenda, with technology at the heart of attracting investment and creating jobs.
Meta launched the Mena region’s first Metaverse Academy in the Kingdom at the Leap Tech Conference in February. The institute, which began operations on May 1, is focused on shaping the Metaverse by training 1,000 people in his first 18 months.
The UAE, the Arab world’s second largest economy, last year unveiled the Dubai Metaverse Strategy, which aims to create 40,000 jobs and add $4 billion to the city’s economy.
The Emirate also hosted the first-of-its-kind Dubai Metaverse Assembly in September.
Many UAE entities, including the Ministry of Economy, Abu Dhabi’s Yas Island, the Ajman Police, and the Crypto Asset Regulatory Authority, have “addresses” in the Metaverse, making it the first regulator in the world to set up shop there.
A previous study by PwC division Strategy& projected that the Metaverse would contribute about $15 billion annually to the GCC economy by 2030, led by Saudi Arabia.
Meta’s research acknowledges that the Metaverse is in its early stages, but highlights that early adopters will have an advantage, especially in markets such as Saudi Arabia and the UAE, which have invested in building the necessary infrastructure.
“Early Metaverse experiences are emerging through existing infrastructure and current user devices in more advanced regions, but how widely advanced technologies such as the Metaverse will be used in Mena remains to be seen. It depends on the environment,” the report said.
It says it goes beyond Internet Service Providers “including the right digital infrastructure, digital skills, and regulations to attract investment, foster innovation, and facilitate access to metaverse applications.” .
Among other global markets, the Metaverse is projected to contribute $402 billion to $760 billion in the US, $284 billion to $536 billion in the EU and $50.5 billion to $95 billion in the UK, according to Meta. A new report and an earlier report said:
Updated: May 10, 2023, 11:58 AM