Saudi Arabia bets on Web3 Gaming for economic diversification
As Saudi Arabia pushes its ambitious Vision 2030 plan to diversify its economy away from oil, the kingdom is turning its attention to emerging technologies such as blockchain, artificial intelligence (AI), and particularly the gaming sector. While the country’s efforts in game and AI development have not yet achieved global prominence, the investments and partnerships it has established signify a bold intent to become a key player in Web3 gaming.
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Saudi Arabia’s growing focus on Web3 Gaming
Saudi Arabia’s focus on Web3 and blockchain gaming is becoming increasingly evident through its partnerships with key industry players. This heightened interest is driven by the understanding that the ownership-proving capabilities of Web3 will likely shape the future of gaming. The nation is strategizing its approach towards this new iteration of the internet, partly because of its tech-savvy, young population.
The Middle Eastern country already represents 45% of the gaming market in the Middle East, boasting a value of more than $1.8 billion. The Saudi Esports Federation, established in 2017, further signifies the kingdom’s commitment to developing its gaming industry. In addition, the country’s Public Investment Fund has invested a staggering $38 billion in the sector, underscoring its aspiration to become a global gaming hub.
Between regulatory hurdles and the need for financial literacy
While the government understands the transformative potential of Web3 technologies, especially in how they could align with esports, the lack of clear regulations regarding cryptocurrency and virtual assets remains an issue. Unlike other jurisdictions where cryptocurrency use is clearly defined, Saudi Arabia is still in the exploratory phase. However, the government’s forward-thinking approach suggests that regulations could soon be put in place to integrate Web3 technologies into its growing gaming sector fully.
To successfully integrate Web3 into mainstream gaming, financial literacy plays a crucial role. Traditional gamers need to understand the value of the assets they could potentially own in a Web3 environment. This goes beyond merely providing them with a digital wallet; it involves a level of financial education that empowers them to see these assets as part of a broader investment strategy.
The road ahead
Saudi Arabia is already learning from other markets to understand best practices and how to implement them effectively. Its investments in the gaming sector and interest in Web3 signify a hunger to be at the cutting edge of technological advancement. With the gaming industry anticipated to onboard up to 100 million players into Web3 games in the next two years, Saudi Arabia’s timely foray into this space may very well position it as a leader in the burgeoning Web3 gaming sector.
As the country diversifies its economy, its investment in gaming and Web3 technologies could serve as a catalyst for broader technological innovation and economic growth. The kingdom’s initiatives, therefore, merit close attention as they could provide valuable insights into the future of Web3, blockchain gaming, and economic diversification.
