A newly released report by Meta in partnership with Deloitte has shed light on the economic potential of the metaverse in the Middle East and North Africa (MENA) region. Titled “The Metaverse and Its Potential for MENA,” the report highlights how the metaverse is being utilized across MENA and outlines the necessary steps to maximize the economic opportunities it presents.
Covering countries such as the Kingdom of Saudi Arabia (KSA), the United Arab Emirates (UAE), Egypt, Morocco, and Jordan, the report projects that the metaverse could contribute an additional $50 billion to the region’s gross domestic product (GDP) by 2035. The estimated contributions vary, with the KSA expected to gain between $20.2 billion and $38.1 billion, the UAE between $8.8 billion and $16.7 billion, Egypt between $11.6 billion and $22.0 billion, Morocco between $2.6 billion and $5.0 billion, and Jordan between $0.9 billion and $1.7 billion in additional GDP per year.
According to the report, the gaps in key enablers vary by country. It stated that while the UAE already operates as a global technology hub and has achieved a strong business and innovation environment, the KSA for example has scope to further enhance the business and regulatory environment. The report added that further improvement in digital skills and infrastructure could unlock incremental benefits.
Asia can unlock a trillion-dollar opportunity by embracing the metaverse
Deloitte noted that its latest report on the metaverse developments in 12 selected Asian economies found a vibrant hive of metaverse activities across many sectors including agriculture, automotive, manufacturing, built environment and urban planning, retail and commerce, tourism, financial services, healthcare, education, government, gaming, and entertainment.
In light of this, Deloitte said that embracing the metaverse could unlock a trillion-dollar opportunity in Asia. The company estimated that the impact of the metaverse on the GDP in Asia could be between US$0.8 trillion – US$1.4 trillion per year by 2035, roughly 1.3 – 2.4 percent of overall GDP per year by 2035.
“However, how much is realized and how quickly, depend on unique strategies the underlying economies may take to accelerate economic benefits of the metaverse”-Deloitte
In a similar development, Meta reported that it has worked with partners to develop global research reports on the economic impact of the metaverse and that each research report provides country-level economic impact estimates of the metaverse.
The report titled “The Potential Global Economic Impact of the Metaverse” estimates the metaverse’s potential economic impact on GDP ten years after adoption by leveraging historical data on economic growth and mobile broadband adoption.
Fares Akkad, Regional Director for the Middle East and Africa at Meta, emphasized the metaverse’s potential to create new creative and commercial opportunities in MENA and globally. Akkad also stressed the need for collaboration among technology companies, policymakers, civil society, and others to unlock this potential.
A recent study to give metaverse stakeholders a reason to cheer in a disappointing year
The latest Meta study brings positive news for stakeholders in the metaverse industry, offering a glimmer of hope amid recent struggles in a year Meta announced to shift its focus away from the metaverse. The study not only highlights the potential economic impact of the metaverse in the Middle East and North Africa (MENA) region but also projects significant contributions to the US and European Union (EU) economies.
According to the study, the metaverse is projected to contribute a substantial $760 billion to the US economy and €489 billion to the European Union economy by 2023. These impressive figures underscore the transformative power of the metaverse and its potential to drive economic growth and innovation on a global scale.
Photo Credit: Meta
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