"From Hype to Reality: The Rise of the Metaverse as an Economic Engine in the Middle East"

The Metaverse: From Hype to Economic Pillar in the Middle East

February 8, 2024

Cryptocurrencies and their associated digital technologies have made a surprising pivot from the realm of speculative investments to the heart of economy-boosting strategies, predominantly in Middle Eastern governments. A principal actor in this digital revolution is the metaverse, an immersive virtual reality space where users can interact with a computer-generated environment and others.

At the recent Arte Talks event in Dubai, Cointelegraph sat down with Samuel Huber, the CEO of LandVault, a company specializing in using metaverse technology in partnership with various Middle Eastern governments. Huber offered some critical insights into the current and future position of the metaverse in these developing economies.

Not long ago, the global cryptocurrency community experienced what Huber refers to as the era of hype” beginning from 2021. This era saw an explosion of interest in the metaverse, with investors and companies alike rushing to stake their claims in this digital frontier. Nevertheless, this initial foray was characterized by many projects overestimating the immediate impact of the metaverse and building features with no immediate function.

Today, the metaverse is evolving into a digital experience Huber defines as the 3D internet, a more practical application of the technology where immersive experiences are embedded into websites, enhancing user experiences.

However, while many companies have pivoted from the metaverse to explore other tech branches like artificial intelligence, Huber reports an unexpected surge in interest coming from Middle Eastern governments. His reason? These governments are eager to digitalize their infrastructure and stimulate their economies with futuristic technologies.

A notable example is Dubai, which, in July 2022, unveiled an ambitious metaverse strategy aiming to create 40,000 virtual jobs by 2030. Not long after, the United Arab Emirates Ministry of Economy set up an office in the metaverse, demonstrating a strong commitment to this new frontier.

These actions signify a deliberate strategy by Middle Eastern governments aimed at diversifying and invigorating their economies. Theyve identified emerging technologies like the metaverse, blockchain, and AI as key areas of investment and growth.

For investors, these developments indicate a substantial shift in market sentiment and potential future movements. While early metaverse investments may have been high-risk due to their unproven nature, government adoption of this technology represents a robust vote of confidence in its long-term applicability and stability.

This trend could see the metaverse become a central pillar in the digital economy, providing opportunities for investors willing to explore non-traditional assets and markets.

As the metaverse continues its evolution from an era of hype to a significant pillar in the Middle East, it brings with it an uncharted world of economic possibilities and challenges. Investors would do well to pay attention to these developments as they continue to unfold.