Metaverse: A $55bn boost to Saudi Arabia and UAE economies by 2035

A study conducted by Meta Platforms, the parent company of Facebook, suggests that the adoption of Metaverse technologies could potentially contribute a combined $55 billion to the economies of Saudi Arabia and the UAE by 2035. The report, conducted by Deloitte, indicates that the kingdom could benefit up to $38.1 billion, while the UAE could see gains of $16.7 billion. The minimum projected impact stands at $20.2 billion for Saudi Arabia and $8.8 billion for the UAE. The study also highlights the anticipated impact of the Metaverse on other MENA markets, such as Egypt, Morocco, and Jordan.

Various sectors, including tourism, retail, property, and gaming, are expected to experience significant benefits from adopting Metaverse technologies. Fares Akkad, Meta’s regional director for the Middle East and Africa, emphasizes the economic potential of the Metaverse and calls for collaborative efforts between technology companies, policymakers, and civil society to unlock its benefits. While the stage of adoption by 2035 remains uncertain, countries and businesses are recognizing the potential of the Metaverse and are actively exploring its applications.

Saudi Arabia, the UAE, Bahrain, and Qatar have already implemented regulations encouraging the use of Web3 technologies as part of their digital economic transformation strategies. Saudi Arabia, in particular, is focused on diversifying its economy through its Vision 2030 agenda, with technology playing a central role. Meta has launched the MENA region’s first Metaverse academy in Saudi Arabia to provide training and shape the Metaverse’s development.

The UAE has unveiled its Dubai Metaverse Strategy, aiming to create jobs and boost the economy. The country has also hosted the Dubai Metaverse Assembly and has several entities with a presence in the Metaverse, including regulatory authorities. Previous studies have estimated the Metaverse’s contribution to GCC economies to reach $15 billion annually by 2030, led by Saudi Arabia.

While acknowledging the early stages of the Metaverse, the report emphasizes the advantage for early adopters, particularly in markets like Saudi Arabia and the UAE, which are actively investing in the necessary infrastructure. The development of a conducive environment, including digital infrastructure, skills, and favourable regulations, will be crucial for the widespread adoption of Metaverse technologies in the MENA region. Globally, the Metaverse is projected to make significant contributions to economies such as the US, EU, and UK, according to reports from Meta.