The UAE is the fourth globally in interest in the sector
During the past two years, the technology of "Metaverse" has dominated the capital in the world's markets; Rather, on the industry scene in general, the companies that deal with “Metaverse” became dominant on the list of the most powerful companies in the world; In terms of market value.
It cannot be overlooked that the "Metaverse Economy" could reach between $8 trillion and $13 trillion by 2030, according to Citibank's latest reports. According to a research study published by (Facts and Factors), the value of the “Metaverse” technology market amounted to about 33 billion dollars in 2021. It is expected that the size of the global “Metaverse” market will reach 800 billion dollars in 2024, while its technologies will contribute to the emergence of innovative projects and industries according to Market dynamics, Bloomberg Intelligence report.
In this file, "Economic Gulf" monitors the future development of this industry, the UAE's position in this industry and the opportunities available to establish a strong industry that will change the map of the UAE economy, and the future of the technology industry locally and globally.
“Metaverse is the future of corporate business.” This is the concept promoted by the New York Times in January of this year, and that “Metaverse” is the future of digital technology that the world is experiencing now, evidenced by the fact that giant companies; In terms of their market value in 2022, they are the companies that invest the most in “Metaverse”; Such as "Microsoft, Meta, Google, and Nvidia", which are companies that achieve huge and non-stop growth rates, making them the most growing in the world.
Although many analysts, interested people and workers in the field of information technology around the world, along with the editors of this sector in newspapers, have been confused about the concept of “Metaverse” since its launch until now, because it has broad connotations, but it mostly refers to the development of the Internet, usually It is described as online spaces where people can socialize, work and play as avatars.
The closures resulting from the “Corona” epidemic caused companies to build virtual communities via the Internet and expand the use of mixed reality technologies, and then it can be said that the “Covid-19” epidemic had a positive impact in increasing the size of the “Metavirus” technology market. “The popularity of this technology is increasing day by day, especially in light of the increasing number of digital investments, blockchain, and finally non-fungible tokens (NFTS).
3D experience
The Metaverse technology provides users with a three-dimensional, 360-degree experience; Where you can play games online in ways that enable players to interact between people, and each other, attend virtual meetings, earn money, and even attend concerts, while some considered that the “Corona” virus was behind the acceleration of the pursuit of this technology, to achieve a virtual reality that transcends crises. the world is going through.
In a practical experiment for the “Economic Gulf”, we used the “Metaverse” technology through virtual reality glasses, and by simply wearing the glasses and holding the controllers, and within a few seconds, you can roam the world from your room or go to practice your favorite hobby, as it is one place that collects everything want and more; As I moved from my room in Sharjah, to another world; A digital world where things look like the real I know them, I hold and touch the things around me, and they feel like they are real. I design myself and my house, buy what I want and move from one place to another, to discover other worlds, as I am now in the world of “Metaverse”.
The adventure began by designing an “avatar” or a digital object that will be you in this virtual world, using the “work room” provided by Facebook within the new technology; Where you can then do all the different activities, from work to sports and entertainment, we played a game of table tennis and my friend Emad hit the ball from Cairo, to reach me in Dubai in an instant as if it was real, in “Metaverse” you can do all your daily chores in the present or Your choice to go to the future to see what's new in the world.
For business metaverses, you need to create free space in your room so that you can move around and fully integrate; Where you can design your own office and meeting room through the “work room”, you can also choose a private computer, and hold a meeting through the “Zoom” application with people outside, you can use your hands as an alternative to the grip of the glasses to make all the multiple choices, too. You can use the grip as a pen to write on the appropriate boards, and in entertainment, the technology allows almost real simulation of playing different games; Where you cannot distinguish between fantasy and reality while playing, in football you kick with your foot and in handball you hold your hands, you do not need to buy a TV screen or go to the cinema; Where the virtual reality glasses allow the quality of watching videos on different platforms.
Investments
Looking at the volume of global companies’ investments in “Metaverse”, we find that Microsoft announced last January that it would acquire Activision Blizzard, a massive video game developer and publisher, to be a sector to secure a major place for it. In Metaverse, the $70 billion deal is Microsoft's largest ever, and will allow the company to develop games and software backed by the company within Metaverse in the coming years; This is according to what the “Makeuseof” platform reported, and Facebook changed its name to “Meta” in a clear reference to its big future bet on “Metaverse”, and in this context, “Meta” invested A total of $10 billion in development of both the hardware and software that will be used, to provide M
Virtual Reality (VR) is inside Metaverse, and the company also plans to invest in augmented reality (AR), another emerging technology with a promising future. This is according to what the previous report mentioned, after several competing companies invested in “Metaverse”, and “Google” finally decided to follow suit last January; The company announced an investment of $39.5 million in its equity fund for all Metaverse projects, according to the previous report, and thanks to its leadership in graphics processing units (GPUs); Having achieved profits of about 3 billion dollars in the third quarter of last year only, Nvidia is in an ideal position; To take advantage of metaverses, and it will be a major player in this field in the future, and it already has its own “Metaverse” platform; Nvidia Omniverse.
The biggest beneficiaries
Engineer Ahmed Sabry, an expert in the field of digital marketing and founder of the Academy of Digital Marketing Arts “DM Arts”, stated that the real search movements in the world of “Metaverse” began in 2003, as “Metaverse” is the third generation of Internet content; Where the first generation is represented by the emergence of the “web site” in 1989, after which the second generation appeared in the interactive internet in a similar way in social networking sites, stressing that “metaverse” is not just a transient phenomenon, but it will continue for a long period of not less than 15 years, like the generations. prior to the Internet.
Regarding the investments of the Arab countries in the “Metaverse”, the digital expert said: The technological infrastructure of the Arab countries is very different from what it was 20 years ago, which makes them an essential and effective partner in the new virtual world, especially the UAE, Saudi Arabia and Egypt, because they have already started initiatives and contracts Global conferences and partnerships with billions of dollars in investments; Where the Dubai Virtual Asset Regulatory Authority established its headquarters in the virtual world “The Sandbox”, to be the first regulator in the world to enter the world of “Metaverse”, and Dubai launched the “Dubai Metaverse Strategy”, to create about 40,000 virtual jobs during the next five years. The UAE will be at the forefront of the Arab countries that create the future of business in the world of “Metaverse”, while Saudi Arabia has invested more than $6.4 billion in this field, and this includes an investment of $1 billion in “Neom Tech and Digital”, pointing out that there are opportunities A real investment in the third generation of Internet content for governments and companies around the world.
Regarding the biggest beneficiaries of Metaverse, he stressed that game development companies are the first beneficiary of the new virtual world, such as Activision Blizzard, a massive video game developer and publisher, and other global game development companies; As the tools used in the “Metaverse” technology are all tools for developing games, followed by the benefit and participation of cartoon and animation film development companies, followed by social media companies. Creating a world for Metaverse is much more difficult than a social media site, pointing out that there are available opportunities, but they are still Limited, the metaverse market is a long-term investment.
The metaphysics rule the world
Dr. Hossam Lotfi, professor of civil law, who specializes in issues of the digital age, said: “Metavirus” technology will rule the world in the coming years, as the avatar will control everything, including the human being.
He explained that smart devices in the world of “Metaverse” will replace humans, and the beginning was in the airports, which began to dispense with workers in most daily tasks. No banknotes, noting that the Corona pandemic forced people to work from home and this succeeded, and electronic stores also succeeded against traditional ones. He added that there are major problems that will arise in the future. In terms of avatar activities, and whether they will be taxed or not, we need to change the laws for the new technology, things are impressive and practical applications are in progress, but the meeting and presence of humans will be very rare, which is a huge disaster.
He asserted that because of the “metavirus” a new generation of humans will appear, humans will be excluded in favor of other humans, and ourselves will be copied through technology, and with time the “Avatar” will know everything about me and with the same time can control and rule humans, through Informational companion » Once the virtual glasses and glove are worn, a copy will be made for each user. He added: "Everyone will deal with the world of "Metaverse" through virtual reality glasses, which cost up to 5,500 dollars, and it is a virtual world that provides all the modern technological tools; Where you can drive all vehicles through (Avatar), but the danger is in the electronic intrusion at the time, which cannot be controlled.”
He continued, “Technology imposed alternatives on us. Including dispensing with humans, when (Facebook) was separated for 6 hours, everyone was in a state of panic and panic, who can provide technology is the one who will rule the world, America began storing data in the largest building in the world, and began analyzing future human behavior through that data, which can Predicting the behavior of people in the future.
Attracting consumers
Experts confirm that "Metaverse" is the future of business for institutions and companies in the next few years; It provides various opportunities for promotion and marketing of services and products through e-commerce transmission, to create a new group of online shopping destinations.
Safe Banking Investments
Hassan Al Rayes, a banking expert, pointed out that banks prefer to pump investment loans into the technology sector, especially the “Metaverse” technology, which is considered safe future investments, with high returns, compared to most other sectors.
Al-Rayes explained that global banks are turning their attention
Now, it is preparing with huge investments to support the new virtual world, which represents the future of global business, given the magnitude of this industry when compared to other industries at the present time. The United States of America represents about 41.2% of the global market ($58 billion), and it is expected that China's share in the metavirus market will reach $103 billion.
Doing Business
Economist Ali Hassan says: "Metavirus" will have a direct impact on how business is accomplished. Where companies will provide better engagement, collaboration and communication levels with their employees, through productive workspaces in virtual offices.
Ali Hassan, who heads an online financial trading company, pointed out that since there is no single owner of the metaverse world, it is expected that there will be a virtual economy available with digital currencies and non-fungible tokens.
He explained that institutions will not need to create their own infrastructure to carry out their work, given the provision of digital space for the possibility of working in virtual offices.
135 crore Indian investment
India is one of the world's most invested countries in "Metavirus"; According to an industry report, the volume of Indian investments in augmented and virtual reality reached 135 billion rupees (1 Indian rupees = 0.013 dollars) in 2020, with a growth rate of 38% each year, and accordingly, Indian investments will jump to 10 times their current size by 2027 ; This is according to what the “Equity Master” platform mentioned in a recent report.
Major Indian technology companies have entered strongly to invest in "Metaverse", for example, "Reliance Industries"; It is the most valuable company in India; In terms of market capitalization; At its 43rd annual meeting, the company announced the launch of smart glasses, called “Geoglass”, designed for teachers and students; allowing them to enter into virtual 3D classrooms. Moreover, the company invested $15 million in Two Platforms; It is a start-up company in Silicon Valley for 25% of the shares, as well as many Indian companies that have entered the market strongly, and are investing a lot of money in "Metaverse".
It is not only the market value that decided the scene; Rather, by reading the report of the analytics company; It is a research institution interested in studying the technology industry market globally. The value of the global “metaverse” market may jump from $110 billion in 2022 to nearly $760 billion by 2026, which reflects the enormity of this industry, if compared to other industries in the world. current time; The United States of America represents about 41.2% of the global market ($58 billion), and China's share in the metavirus market is expected to reach $103 billion.
The UAE is building its own “Metavirus”
The Dubai Virtual Asset Regulatory Authority announced its entry into “Metaverse” and the establishment of its headquarters in the virtual world “The Sandbox”, to be the first regulator in the world to enter the world of “Metaverse”.
The Dubai Virtual Asset Regulatory Authority seeks to consolidate its presence in the virtual world, enable the components of this sector to access its services in its digital technical environment, in addition to facilitating cooperation between global virtual asset service providers, thought leaders in the virtual assets sector, and international regulatory authorities. The Emirate of Dubai aims to raise the total contribution of the “metavirus” sectors to $4 billion in the emirate’s economy by 2030, and to 1% of the gross domestic product.
In July 2022, Dubai launched the "Dubai Metaverse Strategy", which aims to enhance the emirate's position to become among the top 10 economies in the field of "metavirus", as well as create about 40,000 virtual jobs over the next five years. The strategy, launched by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Chairman of the Executive Council and Chairman of the Board of Trustees of the Dubai Future Foundation, aims to add $4 billion to the emirate's GDP in 5 years.
Through this strategy, the Government of the Emirate of Dubai aims to develop global standards in building secure platforms for users, and developing infrastructure and regulations, to accelerate the adoption of these technologies; This is to enhance Dubai's position as a major hub for the global "metavirus" community. His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum said that 1,000 companies in Dubai are currently working in this sector, which contributes $500 million to the national economy, and the sector is expected to grow strongly during the coming period.
The largest companies in the Emirate of Dubai have begun to take their first steps in the world of "Metavirus"; Emirates Airlines announced its expansion in the use of “Metaverse” technology, and “DAMAC Real Estate Group” announced the construction of its own digital city, and the health services company “Thumbay” stated that it had built the first hospital in the world of “Metaverse”, to provide virtual health consultations. In the next few months.
The UAE ranked fourth in the world, after Singapore, New Zealand and Hong Kong; In terms of interest in "metaverse", according to a recent study by BrokerChooser for online search and marketing services.
Saudi Arabia
Saudi Arabia recently announced billions of dollars in investments in advanced technologies; The Kingdom will invest more than $6.4 billion in this field, including a $1 billion investment in NEOM Tech & Digital, named after the Kingdom's future city. The official Saudi Press Agency stated that the company plans to launch its own metaverses in the future.
The state-owned Saudi oil company, Aramco, will also invest $1 billion in the Prosperity7 Ventures Fund, so that the company will focus on investing in future technology, particularly blockchain technology.
blockchains).
10 billion yuan of Chinese investment
It doesn't just stop there; Rather, investments in “Metaverse” imposed themselves on the countries of the world in a way that they were able to change the landscape for the world economy and markets in recent months. By tracking the list of major countries since the beginning of 2022, we find that the number of requests for new brands in China that contain the word “Metaverse” It exceeded more than 7,000 applications, starting from the ninth of December last year, and more than a thousand companies registered trademarks related to “Metaverse”; This is according to the “D-Crypt” platform; Beijing ranked first with 810 brands; It is followed by "Guangzhou" with 637; and "Shenzhen" and "Shanghai" with 519 and 419, respectively.
The value of Chinese investments in "Metavirus" during the past year alone amounted to more than 10 billion yuan, (1 yuan = 0.15 dollars), and this number is constantly increasing; Tencent has a large number of technologies and capabilities to explore and develop its own metaverses, and has applied to register the trademarks of King Metaverse and Tianmei Metaverse, and has invested in at least 67 game companies this year. “Tencent” focuses primarily on the areas of games and social communication, and “Ali Baba” invested heavily in “Sandboxes” and the “Alibaba Damo Academy” established a special laboratory, to develop metaverses.