12 Dec 2022; MEMO: Gulf Cooperation Council (GCC) member states are predicted to make a total of $15 billion annually by the year 2030 as they introduce policies to implement new "metaverse" technology within their respective economies.
In a report published last week by Strategy&, a subsidiary of the global consultancy firm PwC, it was revealed that Saudi Arabia is expected to make around half of that amount — $7.6bn — by the end of this decade, while the UAE could make almost a quarter with $3.3bn. These two GCC states are followed by Qatar with $1.6bn, Kuwait at $1bn, Oman with $800 million and Bahrain at $400m. The sector which will reportedly benefit the most from the integrated technology will be travel and tourism, estimated to receive an annual economic gain of $3.2bn.
Announced by Facebook co-founder and CEO Mark Zuckerberg last year, the metaverse is a virtual space where individuals – in the form of their avatars or three-dimensional representations – are able to interact with other users within the system. Rather than only being used for gaming or social purposes, the virtual reality system is also designed for use by businesses and their employees as an alternative workplace and to streamline operations.
"The metaverse holds a world of possibilities that extends beyond next-generation gaming and internet-based home buying or shopping," explained Dany Karam, a partner at Strategy& Middle East. "It will change how we work, transact, plan, design, build, shop, recreate, travel and live."
Since Zuckerberg's announcement, the Gulf States have jumped on the phenomenon and been quick to adopt it as a potentially major tool for development economically and otherwise, led by Saudi Arabia and the UAE. As part of its Vision 2030 to diversify away from fossil fuels, for example, Riyadh plans to make the metaverse a key component in its megacity project NEOM, where the system will reportedly provide it with information regarding construction operations and enable people to experience the future city in both the real and virtual worlds.
In July this year, the UAE announced a more immediate application of the virtual reality system when it unveiled its Dubai Metaverse Strategy. The Emirate aims to create 40,000 jobs and provide a further $4bn for the country's economy.
At the inaugural Dubai Metaverse Assembly in September, the UAE government also announced a new economic output metric named the "gross metaverse product", integrating it further into the economy.
Despite this increased growth and optimistic outlook towards the metaverse within the GCC, Strategy&'s study warned that regulators must take some appropriate steps. These include building robust digital infrastructure, handling user data responsibly and ensuring the technology's security and reliability.
