Metaverse technologies have the potential to boost various Saudi sectors including retail, according to a new study from Facebook parent Meta Platforms.
The study suggests that Metaverse is going to add a combined $55 billion to the economies of Saudi Arabia and the UAE by 2035.
The minimum impact would be $20.2 billion for Saudi Arabia and $8.8 billion for the UAE.
In Mena markets such as Egypt, the metaverse is expected to bring between $11.6 billion and $22 billion.
Meta’s regional director for the Middle East and Africa, Fares Akkad, said: “The metaverse will be a constellation of technologies, platforms and products built by a range of companies, opening up creative and commercial opportunities in the Middle East and North Africa and around the world.
“While these technologies may be virtual, their economic impact will be very real. Unlocking this potential is critically important and will only be achieved collaboratively, through effort and co-operation between technology companies, policymakers, civil society and others.”
The metaverse is a virtual space that can replicate real-world retail experiences and usher in a new era of shopping.
“Accenture defines the metaverse as an evolution of the internet that enables a user to move beyond ‘browsing’ to ‘inhabiting’ in a persistent, shared experience that spans the spectrum of our real world to the entire virtual and in-between.”
The necessity for remote and engaging shopping became acute after the lockdown as customers were urged to explore alternative shopping modes.
Although the metaverse as a retail market is a relatively new phenomenon, companies are vying to reap its vast opportunities.
Saudi Arabia, the UAE, Bahrain and Qatar have regulations in place encouraging the use of Web3 technologies as part of their digital economic transformation programmes.
Saudi Arabia, the Arab world’s biggest economy, is undergoing an intense diversification phase under its Vision 2030 agenda, with technology central to attracting investments and creating jobs.
It has become apparent that the kingdom is eagerly reaping the benefits of the metaverse.
One of the most vivid illustrations of its adoption is the upcoming Mukaab project – a 1300ft cube shopping mall, jampacked with holograms, robots and massive video screens.
The UAE also keeps pace with the metaverse evolution.
Last year, for example, Dubai hosted the Dubai Metaverse Assembly which showcased its benefits for key sectors like retail and logistics and launched The Mall of the Metaverse in February this year.
The global metaverse market valued at $47.69 billion in 2020 is projected to reach $828.95 billion in 2028, with an annual compound rate of 43.3 per cent, according to Emergen Research.
