The Meteoric Rise of the Metaverse

by Rameen Batal

A Projection of $900 Billion by 2030 and its Implications for the MENA Region

The digital realm is undergoing a transformative phase, with the metaverse emerging as the next frontier in the world of technology. Recent projections suggest that by 2030, the global market capitalization of the metaverse business could soar to a staggering $900 billion. This is not just a global phenomenon; the MENA region is poised to be a significant player in this digital revolution.

 

Deloitte's recent study paints a promising picture for the MENA region, predicting that the metaverse business could contribute a colossal $80 billion to its GDP annually by 2035. Breaking this down further, metaverse technologies could potentially infuse between $20.2 billion and $38.1 billion into the Saudi economy and between $11.6 billion and $22 billion into the Egyptian economy by 2035. These figures are based on global forecasts of metaverse-related ICT investments.

 

The MENA region, characterized by its diversity and rapid development, is uniquely positioned to harness the potential of the metaverse. Countries rich in hydrocarbons are strategically pivoting towards diversification to ensure sustained long-term growth. This shift is evident in ambitious transformation programs such as Saudi Arabia's Vision 2030 and the UAE Vision 2031.

 

Saudi Arabia, in particular, is making significant strides in the technological realm. By 2025, the nation is projected to invest approximately $24.7 billion in technology. This investment might stand out as the world's largest when juxtaposed with the country's GDP. Furthermore, the initiation of the NEOM project, a groundbreaking investment in new smart communities near the Red Sea, underscores Saudi Arabia's commitment to technological advancement.

 

The report also highlights a noteworthy statistic: a whopping 79% of enterprises in the region are keen on integrating metaverse technologies into their operations. This enthusiasm is not unfounded. Samuel Hooper, CEO of Landvault, a pioneering metaverse technology business, elucidates why metaverse enterprises are gravitating towards the GCC and the regional market. The overarching goal of local governments and institutions to emerge as industry frontrunners by 2030 is a significant draw. Hooper states, "The government established this technological vision, which has sparked innovation and attractive regulations for these companies." The GCC, in its technological adoption and rollout cases, has outpaced many nations, marking itself as an early adopter.

 

The region's proactive approach is evident in various initiatives and projects. The Dubai Metaverse Strategy, the UAE Ministry of Economy's foray into the metaverse, the Dubai Metaverse Forum, and the integration of metaverse technologies in Saudi Arabia's NEOM project are testament to the GCC countries' commitment to leadership in the virtual world sector. The Dubai Metaverse Strategy alone aims to elevate the sector's contribution to $4 billion by 2030 and account for 1% of the emirate's GDP by the same year.

 

Hooper also emphasizes the educational endeavors in the region to enlighten the populace about the ongoing technological developments. The DIFC's launch of the Metaverse platform earlier this year was a strategic move to attract tech innovators and foster development. He asserts, "Regional governments have played an important role in educating businesses and consumers about the future and potential of technology."

 

In conclusion, the metaverse is not just a fleeting trend; it's the future. With global market capitalization projections reaching $900 billion by 2030 and the MENA region's potential contribution of $80 billion to its GDP by 2035, the metaverse is set to redefine the digital landscape. The MENA region, with its proactive initiatives, investments, and educational endeavors, is gearing up to be a dominant player in this new digital era.