A recent report by PwC has outlined how the metaverse could transform key sectors in the Middle East, exploring its particular impact in the Gulf Cooperation Council (GCC) countries.
The metaverse has the potential to contribute approximately $15 billion to the economies of the GCC by 2030, according to the report, with additional opportunities emerging across the broader Middle East.
The metaverse is a virtual, interconnected space that blends augmented reality, virtual reality, and the internet. Users interact through avatars, engaging in various activities like socialising, working, and gaming in immersive 3D environments. It represents a seamless, interconnected digital world, transcending traditional online experiences and blurring the line between physical and virtual realities.
Exploring virtual worlds
The metaverse offers diverse digital experiences by digitising the physical world and promoting seamless collaboration.
It involves user engagement through hardware like AR headsets and mobile devices, with centralised or decentralised structures, and digital assets include avatars, virtual possessions, and landscapes. Functionalities cover 3D modelling, visualisation, interoperability, and more, while technologies include IoT, 5G, AI, and blockchain.
By 2024, the global value of the metaverse is predicted to approach $800 billion, and GCC nations are already significant players in the market. Dubai is one location in the region that is already planning for this digital future, having unveiled its metaverse strategy at last year’s first-ever Dubai Metaverse Assembly.
The emirate plans to “provide a global platform for the metaverse community to discuss new opportunities emerging from this new technology and promote knowledge-sharing and partnerships between entrepreneurs and innovators,” said Sheikh Mohammed bin Rashid Al Maktoum.
This metaverse strategy aims to add $4 billion to Dubai’s GDP, support 40,000 virtual jobs by 2030, and attract 1,000 companies specialised in blockchain and metaverse technologies.
The travel and tourism sector in the GCC could gain about $3.2 billion from the metaverse by 2030.
Saudi Arabia, as part of its Vision 2030 initiative for economic diversification, aims to use advanced technology to attract 100 million tourists by 2030. The metaverse promises simulated experiences, and the travel industry can leverage this to offer virtual tours of religious, cultural, fashion, and food events, as well as spa retreats and entertainment.
For instance, the historic city of AlUla, a UNESCO World Heritage Site, could be explored by people worldwide. These immersive virtual experiences may then inspire in-person visits, as well as allowing tourists to later revisit their experiences through the metaverse.
Additionally, Qiddiya, expected to be the world’s largest entertainment city, might exceed its annual visitor goal by providing immersive entertainment through extended reality and the metaverse during major live events.
Saudi giga-projects
Beyond the travel and tourism sector, the metaverse’s projected contribution of $7.6 billion to the Saudi economy can support Vision 2030‘s goal of attracting annual foreign direct investment of SAR 388 billion (equivalent to US$103.5 billion) by 2030.
For instance, PwC estimates that the metaverse could contribute an extra $1 billion to the GCC real estate sector by 2030, particularly in Neom, a futuristic city in northwest Saudi Arabia. The metaverse will enable virtual visits, allowing users to explore Neom as avatars or holograms. This metaverse representation could influence the city’s development.
The development of metaverse elements and applications is progressing rapidly, and the report recommends that business leaders should proactively initiate strategic and technological preparations to harness the transformative opportunities offered by the metaverse.
Neom recently unveiled the Siranna, Leyja and Epicon tourism destinations, as well as a new immersive destination for art and entertainment called Utamo and a new wellness-focused community called Norlana. These will join a luxury island called Sindalah, a zero-carbon city with “vertically layered” buildings named The Line, the Oxagon floating port city, and the Trojena ski resort.
Top image courtesy of Qiddiya
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