MENA Metaverse

MENA Metaverse

The metaverse refers to a hypothesized iteration of the internet that blends aspects of online virtual worlds, augmented reality, social media, and cryptocurrencies to allow users to interact virtually in a shared virtual space. In the metaverse, the digital and physical worlds are brought together in a unified, real-time simulation spanning multiple platforms and devices. For example, a metaverse platform could allow a user to purchase a virtual plot of land as an NFT asset using a cryptocurrency like Ethereum. The user can then develop the land, hosting virtual events or renting out advertising space. Crypto and NFTs enable new ownership models. Key characteristics of the metaverse include persistence, real-time interaction, interoperability, presence, platform convergence, blockchain integration, and hybrid reality blending digital and physical worlds. These features aim to evolve internet experiences into immersive shared virtual spaces.

The MENA Metaverse Market is expected to grow at a strong CAGR of 42.3% during the forecast period. The emergence and adoption of blockchain technology, cryptocurrencies, and NFTs in the MENA region contributes to the demand for metaverse platforms and experiences. As virtual currencies and digital assets gain traction in MENA, more consumers are getting comfortable with the concepts underpinning crypto-enabled metaverse environments. The alignment of blockchain and metaverse innovation provides a boost to market growth potential.

• On the basis of product type, the market is segmented into Infrastructure, Hardware, Software, and Services. Infrastructure segment led the market in 2022. The infrastructure segment includes the foundational technologies and platforms required to enable metaverse environments and experiences. This encompasses 5G networks, cloud computing capacity, blockchain and distributed ledgers, spatial computing frameworks, and the integration layers to allow interoperability between virtual worlds. Robust infrastructure is crucial for the functioning of real-time, high-fidelity metaverse spaces. Companies like telecom providers and technology vendors are major drivers of infrastructure spending for the metaverse in MENA. Their initiatives and investments have been focused on back-end infrastructure.
• On the basis of the technology, the market is segmented into Blockchain, Virtual Reality (VR) & Augmented Reality (AR), Mixed Reality (MR), and Others. Virtual Reality (VR) & Augmented Reality (AR) led the MENA metaverse market in 2022. VR/AR technologies are more consumer-ready and commercially available compared to blockchain or mixed reality which are still emerging. Major tech companies like Meta, Microsoft, HTC, and others are heavily investing in VR/AR hardware and software development tailored for metaverse experiences.
• On the basis of end-use industry, the MENA metaverse market is segmented into Aerospace & Defense, Education, Healthcare, Media & Entertainment, Others. Other end-use industries that could benefit from metaverse adoption include Retail, Construction, Real Estate, Engineering, Tourism and more. The media & entertainment industry has been quickest to adopt new technologies like VR/AR and experiment with practical metaverse applications. Use cases like virtual concerts, movie promotions, metaverse gaming, social VR spaces, and digital collectibles are gaining real traction.
• For a better understanding of the market adoption of the Metaverse industry, the MENA market is analyzed based on its worldwide presence in countries such as UAE, Saudi Arabia, Egypt, Iran, and the Rest of MENA. UAE led the market in 2022. The UAE's Metaverse market is driven by both public and private sector initiatives. Major UAE-based corporations like Aldar Properties, Majid Al Futtaim, and Etisalat have announced metaverse projects. The Dubai Metaverse Assembly hosted by the Dubai Future Foundation brings together businesses, experts, and youth to discuss metaverse trends. Educational institutions like the University of Dubai are launching metaverse-focused programs. With this level of coordinated government and corporate backing for Web 3.0 and metaverse technologies, the UAE aims to solidify its position as a global leader in adopting and leveraging virtual world platforms to drive economic growth and progress. The broader MENA region can gain insights from the UAE's approach to metaverse strategy and planning.
• Some of the major players operating in the market include e& etisalat and, Brinc Batelco, Chalhoub Group, Dubai Blockchain Center, Emirates NBD , Majid Al Futtaim, Meta, Metafora, Noon, and The Sandbox.