Saudi Arabia has strengthened its economic diversification efforts driven by its ambitious Vision 2030.
In an effort to diversify its economy away from dependence on oil. The Kingdom has embraced emerging technologies, such as blockchain and artificial intelligence (AI). It took advantage of booming markets such as gaming.
But while the country has not yet left a significant mark in the global game and the development of artificial intelligence. The effects of its investments in the gaming sector could extend much further. At least, that's what Web3 experts say.
“Based on our work and connections, Saudi Arabia is very, very interested in Web3,” said Yat Siu, co-founder of Animoca Brands.
Considering the Kingdom's partnerships with entities such as The Sandbox and even Animoca. Seo sees an effort by Saudi Arabia to venture into the new iteration of the Internet.
The executive said: “I think Saudi Arabia understands the principle that Web3 games or blockchain games... “That actually proves the owner’s assets – it will be the future of gaming.”
Thanks to the interest of its young, tech-savvy population, Saudi Arabia leads... Along with the United Arab Emirates, the gaming market in the Middle East is growing. According to a Boston Consulting Group report, the Kingdom represents 45% of the sector in the region. With a value of more than $ 1.8 billion . It also boasts one of the largest gaming revenues in the region, according to gaming content studio Allcorrect.
In 2017, the Kingdom established the Saudi Electronic Sports Federation to regulate and develop the gaming industry in the country.
Ron DeSantis Polls Drop: Could Crypto Lose Its Candidate? Bloomberg reported in April that Saudi Arabia, through the Public Investment Fund. It has invested $38 billion in the sector as it looks to become a global gaming hub.
Although the Saudi government understands the “high-level concept” of Web3, and its potential. And how can it go along with electronic sports. Where teams can own stakes in the games they play. However, Seo said that it is still unclear what its integrations with games are due to the lack of clear rules regarding cryptocurrencies and other virtual assets.
He said, “Cryptocurrency is something that remains to be explored. are being investigated. I think Saudi Arabia is very far ahead on how to deal with it. But they haven't come up with anything yet.”
“In places like Hong Kong, Japan and the United Arab Emirates. There is more clarity on what you can do with cryptocurrencies and Web3. “You can map out a strategy,” Seo added.
While it remains to be seen what Web3 gaming applications will look like in Saudi Arabia. Siu noted that the Kingdom is looking to other markets and learning.
“That's why they talk to us. The executive explained that they wanted to know what the best practices were and how they could learn. “There are very few places in the world where we have experienced such a thirst and desire to be at the forefront.”
Desire for progress “You can feel a kind of desire for progress and leadership in Saudi Arabia. “I think this is kind of unique,” Seo added.
How can games drive Web3 adoption?
Despite continued opposition from the traditional gaming community and developers. Siu claims that a successful conversion of users to Web3, whether it be in the gaming business or not, must come with financial literacy.
“You really can't be a real Web3 user if you don't have at least some level of financial literacy beyond just having a bank account,” Seo said.
The co-founder of Animoca claimed that most Web2 users are not equity investors because they are mostly workers compared to Web3 people who understand investing.
“What we've found is that the path to widespread Web3 adoption doesn't give [Web2 users] just a wallet. This is actually the easiest part. The hardest part is how to make them realize that what they have now is an asset with potential value. It can do things and has various network effects that must be preserved as real value.
Meanwhile, John Linden, CEO of Mythical Games, said: It is already seeing Web3 adoption in the gaming sector, albeit at a slower pace.
“I think we're seeing some [adoption] already. We're seeing people introduce the [Web3] concept. “They understand the concept of buying and selling assets,” Linden said.
