A brave new, virtual world – Saudi Arabia takes the lead in metaverse adoption

"Virtual learning environments can provide immersive educational experiences, interactive simulations and collaborative platforms for students and professionals to acquire new skills and knowledge”. (Shutterstock)
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Updated 15 April 2024
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A brave new, virtual world – Saudi Arabia takes the lead in metaverse adoption

A brave new, virtual world – Saudi Arabia takes the lead in metaverse adoption

RIYADH: By breaking down geographical barriers, the metaverse — a digital space that uses virtual and augmented reality — is set to foster unprecedented levels of collaboration and connectivity.

From how individuals work, plan, design, and build to how they shop, relax, travel, and live, it will have a significant impact on almost every aspect of life.

But that’s not all. The metaverse is also projected to become a commercial space and tool for companies and customers alike in the near future.

Zooming into the Middle East region, the metaverse has significant potential to revitalize and transform key sectors. More importantly, it aligns with several objectives of Saudi Vision 2030, particularly in diversifying the economy and enhancing the quality of life in the Kingdom.

According to a recent report released by management consulting firm strategy& titled “A Middle East Perspective on the Metaverse,” the 3D enabled digital space’s potential contribution to Gulf Cooperation Council economies could reach an estimated $15 billion by 2030 of which Saudi Arabia alone is expected to grab a share of about $7.6 billion.

Allocating major investments

Saudi Arabia has also recently allocated resources to the metaverse as the Kingdom pursues ambitious digital transformation plans.

Saudi Arabia’s $500 billion giga-project NEOM has a metaverse component that already is being used to develop the city by informing the construction sector on the progress on the ground and providing architects, engineers, designers, and others with ways to collaborate and customize aspects of the project for real estate clients, the strategy& report revealed.

There is no doubt that the adoption of metaverse across industries in Saudi Arabia and the wider region will create new opportunities for individuals and businesses.

It will also allow users to engage in economic activity in a more decentralized and open way, thereby speeding efficiency across the many sectors.

According to Priyanka Sharma, associate partner, Bain & Co. Middle East, metaverse adoption will “increase access and scale of offerings, experiences, transcending demographic and geographic boundaries.”

This includes virtual events as well as immersive travel experiences.

Metaverse adoption will also help “support digital content, product development, and customization,” she added.

In addition, it will “provide a virtual playground for prototyping, experimentation and research with minimal incremental budget time across use cases,” Sharma emphasized.

Enhancing operational efficiency

According to Ahmed Al-Mashhadi, CEO of metaverse-as-a-service firm VEEM, the adoption of metaverse technologies in Saudi Arabia promises to significantly enhance operational efficiency across several sectors.

“Take real estate, for example,” he said. “By utilizing our virtual tours, clients can explore near-realistic off-plan projects in detail without physical travel, saving time and resources, and boost decision making.”

Nigel Vaz, CEO of global digital transformation consulting firm Publics Sapient, went on to shed light on some of the major sectors that have potential to employ metaverse applications.

“The metaverse, as an extension of this digital evolution, presents unparalleled opportunities for sectors like entertainment, real estate, and education,” he told Arab News.

Vaz added: “These sectors can harness the immersive and interactive capabilities of the metaverse to offer innovative services and experiences, from virtual real estate tours enhancing the buying experience to digital platforms that revolutionize learning and engagement in the education sector.”

From a gaming point of view, Mario Pérez, CEO of MENA Tech, pointed out how this industry is set to take advantage of metaverse applications.

“As virtual environments become more immersive and interconnected, we anticipate that gamers in these regions will experience enhanced social interactions, more diverse gaming experiences, and increased opportunities for community engagement,” he said.

Pérez added: “While it’s still early days for widespread adoption, we’re closely monitoring developments, especially considering the rapid growth of esports in Saudi Arabia.”

The CEO went on to note that, with the construction of Qiddiya City, one of the five megaprojects in Saudi Arabia and dedicated entirely to gaming – including hosting the first World Esports Championship – the region is “poised to become a hub for gaming innovation and development.”

He continued: “Metaverse will introduce innovative dimensions such as enhanced virtual social experiences, immersive gameplay, and interactive storytelling. These dimensions have the potential to revolutionize how gamers interact with each other and the virtual worlds they inhabit, fostering a vibrant gaming culture and community.

“Furthermore, the metaverse also offers promising sponsorship opportunities for brands to participate in various immersive experiences and create their virtual environments, allowing them to engage with consumers in novel and impactful ways.”

Pérez went on to shed light on how MENATech Entertainment, the regional division of GGTech Entertainment, has been actively exploring metaverse applications within its projects.

“As part of Amazon University Esports, which combines gaming competitions with educational activities and professional opportunities for university students, GGTech conducted its first pilot test last season with University World, a virtual environment designed to bring together participants from the EMEA (Europe, Middle East, and Africa) region,” he revealed.

The CEO added: “A significant advance is the experience gained from the creation of University World in the development of eWorlds, a multiplayer 3D platform game developed by GGTech Studios, the development arm of GGTech Entertainment.”

Other than gaming, there are several other sectors that will also be able to utilize the metaverse for their own benefit.

“Virtual property tours will allow potential buyers to explore properties in a comprehensive, virtual environment,” Joachim Allerup, expert partner in innovation and design, Bain & Co., told Arab News.

He added: “Urban planning simulations will enable urban planners and architects to model and simulate new projects and city layouts in the metaverse including digital twins and connected systems.”

The expert also unveiled that virtual shopping malls will create next generation e-commerce.

Additionally, interactive product demonstrations will offer customers the ability to explore and interact with products in a 3D virtual space, he pointed out.

Furthermore, Husam Yaghi, World Metaverse Council member, told Arab News that “tourism and education will benefit the most from metaverse applications in Saudi Arabia and the wider region.”

Aligning with Vision 2030 goals

Vaz underlined that the spate of developments in the metaverse sphere “align seamlessly with the ambitions of Saudi Vision 2030, which aims to diversify the economy, foster cultural and entertainment sectors, and build a knowledge-based society.”

He continued: “By integrating metaverse technologies, Saudi Arabia can advance its economic diversification, cultural enrichment, and educational transformation goals.”

Vaz also emphasized how his consulting firm Publics Sapient is committed to partnering with Saudi businesses and the government to navigate this digital transformation journey.

“Leveraging our global expertise and local insights, we aim to support the development of the metaverse ecosystem in the Kingdom, ensuring it contributes to the realization of Vision 2030 and positions Saudi Arabia as a leader in digital innovation on the global stage,” the CEO informed.

For his part, Pérez reiterated how the metaverse has the potential to align with Saudi Vision 2030 in several ways, particularly in advancing the goals of diversifying the economy, fostering innovation, and promoting digital transformation.

“One example is in the area of entertainment and tourism. As Saudi Arabia seeks to develop its tourism sector and become a global entertainment hub, the metaverse can provide virtual experiences that showcase the country’s cultural heritage, landmarks, and attractions to a global audience,” the CEO said.

He added: “Virtual tourism initiatives could complement physical tourism efforts, attracting visitors and generating revenue while promoting the cultural richness of Saudi Arabia.

“Also, the metaverse has the potential to enhance education and training initiatives in line with Saudi Vision 2030’s emphasis on human capital development. Virtual learning environments can provide immersive educational experiences, interactive simulations and collaborative platforms for students and professionals to acquire new skills and knowledge.”

For his part, Yaghi said: “Saudi Arabia sees the metaverse as a key player in achieving its Vision 2030 goals and has created Saudi Arabia’s Center of Excellence for the metaverse. AI-Powered Metaverse for Riyadh Expo 2030 and Metaverse for K-12 Education are both examples of how the metaverse contributes to the Saudi Vision 2030.”

Allerup added: “The metaverse and associated technologies have the potential to cater to all pillars of the Saudi Vision 2030 given the variety of use cases and their impact across multiple sectors.”

Reskilling the workforce

When it comes to the labor market, it seems that current market data is not accurately reflecting the full picture just yet in terms of the unprecedented growth in projects related to the metaverse.

By all accounts, it is most likely that the current workforce will need reskilling. This is the process of teaching an employee new skills to boost and elevate proficiency whether for their current job or for a more advanced position.

“In the light of metaverse and mixed reality we can expect that almost all sectors will see the need for new capabilities. New ways of working, collaborating in virtual environments, proficiency with new age and ever-evolving tools/software, coding and development of digital assets will require everyone to reskill to leverage the opportunities of virtual worlds and mixed reality,” Sharma concluded.

 


Qatar commits to investing $10bn in India

Qatar commits to investing $10bn in India
Updated 5 sec ago
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Qatar commits to investing $10bn in India

Qatar commits to investing $10bn in India

NEW DELHI: Qatar has committed to investing $10 billion in India across various sectors, the two nations said in a joint statement on Tuesday, after Qatar’s Emir Sheikh Tamim bin Hamad Al-Thani visited New Delhi.

Indian Prime Minister Narendra Modi said he had a “very productive meeting” with Qatar’s Emir, who was on a two-day visit to New Delhi.

“Trade featured prominently in our talks. We want to increase and diversify India-Qatar trade linkages,” Modi said in a post on X. It was the first such visit by a Qatari Emir to the South Asian nation in 10 years.

According to the statement, Qatar will invest $10 billion in India in infrastructure, technology, manufacturing, food security, logistics, hospitality and other sectors.

The two countries will aim to double their annual trade to $28 billion in the next five years and are exploring the signing of a free trade agreement, the Indian foreign ministry said earlier in the day.

Bilateral trade between the two nations stood at $18.77 billion in the fiscal year that ended in March 2023, mainly comprising liquefied natural gas imports from Qatar.

Qatar accounted for more than 48 percent of India’s LNG imports that year.

The two sides said they would work to enhance bilateral energy cooperation, including mutual investments in energy infrastructure, as well as look at settlement of bilateral trade in their respective currencies. 


Oil Updates — crude gains on US, Russia supply worries; market seeks Ukraine talks clarity

Oil Updates — crude gains on US, Russia supply worries; market seeks Ukraine talks clarity
Updated 39 min 28 sec ago
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Oil Updates — crude gains on US, Russia supply worries; market seeks Ukraine talks clarity

Oil Updates — crude gains on US, Russia supply worries; market seeks Ukraine talks clarity

HOUSTON/SINGAPORE: Oil prices edged up on Wednesday amid worries of oil supply disruptions in the US and Russia, and as markets awaited clarity on the Ukraine peace talks.

Brent crude futures were up 14 cents, or 0.2 percent, at $75.98 a barrel at 7:50 a.m. Saudi time, and possibly set for a third day of gains.

US West Texas Intermediate crude futures for March rose 16 cents, or 0.2 percent, to $72.01, up 1.8 percent from the close on Friday after not settling on Monday because of the Presidents’ Day public holiday. The March contract expires on Thursday and the more active April contract gained 14 cents, or 0.2 percent, to $71.97.

“The psychologically important $70 level appears to have held firm, aided by the Ukrainian drone attack on the Russian oil pumping station and fears that cold weather in the US may curtail supply,” said IG market analyst Tony Sycamore.

“On top of that there is some speculation that OPEC+ may decide to delay its planned supply increase in April,” he said, referring to the Organization of the Petroleum Exporting Countries and allies.

Russia said oil flows through the Caspian Pipeline Consortium, a major route for crude exports from Kazakhstan, were reduced by 30 percent to 40 percent on Tuesday after a Ukrainian drone attack on a pumping station. A 30 percent cut would equate to the loss of 380,000 barrels per day of supply to the market, according to Reuters calculations.

Meanwhile, cold weather threatened US oil supply, with the North Dakota Pipeline Authority estimating that production in the country’s No. 3 producing state would be down by as much as 150,000 bpd.

US President Donald Trump’s administration said on Tuesday it had agreed to hold more talks with Russia on ending the war in Ukraine. A deal could ease or help remove sanctions that have disrupted the flows of Russian oil shipments.

Analysts at Goldman Sachs said a potential Ukraine-Russia peace deal and associated easing in sanctions on Russia is unlikely to significantly raise Russia oil flows.

“We believe that Russia crude oil production is constrained by its OPEC+ 9 million barrels per day production target rather than current sanctions, which are affecting the destination but not the volume of oil exports,” they said in a report.

Israel and Hamas will also begin indirect negotiations on a second stage of the Gaza ceasefire deal, officials said on Tuesday.

However, Trump said on Tuesday he intends to impose auto tariffs “in the neighborhood of 25 percent” and similar duties on semiconductors and pharmaceutical imports.

Tariffs could raise prices for consumer products, weaken the economy and reduce demand for fuel. 


Saudi Arabia raises $818m in February sukuk sale 

Saudi Arabia raises $818m in February sukuk sale 
Updated 43 min 14 sec ago
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Saudi Arabia raises $818m in February sukuk sale 

Saudi Arabia raises $818m in February sukuk sale 

RIYADH: Saudi Arabia raised SR3.07 billion ($818 million) through its February sukuk issuance as the Kingdom continues to tap debt markets to support economic diversification efforts. 

The latest riyal-denominated offering, managed by the National Debt Management Center, follows a SR3.72 billion issuance in January. The Kingdom raised SR11.59 billion in December and SR3.41 billion in November, according to official data. 

Sukuk, a Shariah-compliant financing instrument, allows investors to hold partial ownership in an issuer’s assets while adhering to Islamic finance principles. Saudi Arabia has been a key player in the global sukuk market, leveraging debt sales to finance projects under its Vision 2030 economic transformation plan. 

According to the NDMC, the February issuance was split into four tranches. The first, valued at SR585 million, matures in 2029, while the second, at SR1.70 billion, is set to mature in 2032. The third tranche, worth SR404 million, is due in 2036, and the final portion, totaling SR376 million, will expire in 2039. 

Saudi Arabia is expected to play a leading role in driving global debt and sukuk issuance over the next two years, Fitch Ratings said earlier this month. The Kingdom’s financial institutions and corporations are increasingly turning to international debt markets to diversify their funding sources, the agency noted. 

A separate report by Fitch projected Saudi Arabia’s debt capital market to reach $500 billion by the end of 2025, supported by a growing pipeline of infrastructure and development projects. 

The Kingdom is also set to lead bond and sukuk maturities in the Gulf region, with redemptions expected to total $168 billion between 2025 and 2029, according to a December report by Kamco Invest. Government-issued debt will account for the largest share, with maturities projected to reach $110.2 billion during the period. 

Across the Gulf Cooperation Council, the debt capital market surpassed the $1 trillion mark in outstanding issuances by the end of November, Fitch said in a separate report. 

Meanwhile, global sukuk issuance is forecast to range between $190 billion and $200 billion in 2025, driven by activity in key markets such as Saudi Arabia and Indonesia, according to S&P Global. The credit rating agency reported that global sukuk sales totaled $193.4 billion in 2024, slightly down from $197.8 billion in 2023.


Experts highlight importance of data in capital markets at Saudi forum

Experts highlight importance of data in capital markets at Saudi forum
Updated 18 February 2025
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Experts highlight importance of data in capital markets at Saudi forum

Experts highlight importance of data in capital markets at Saudi forum
  • Industry specialists said that real-time data availability is equally crucial for other participants

RIYADH: Accessing and interpreting data effectively is crucial for investors’ success in capital markets, as it enables them to make informed and timely decisions, according to experts. 

During a panel discussion at the Capital Markets Forum in Riyadh on Feb. 18, industry specialists said that real-time data availability is equally crucial for other participants, such as brokers, asset managers, and external institutions.

“What I believe is that data is the new alpha. So, those who master it will not only participate or win in the market, but they will define the market,” said Mehdi Miri, CEO of DirectFN. 

He added: “For investors, data is really about making smart and fast decisions. What investors need to see today is real-time AI-powered data that will help them look into insights and foresight so that they can see market opportunities before the market moves.” 

Miri further said that brokers and banks are using advanced analytics to build their trading and hedging strategies, ultimately improving their execution process. 

Yazeed Al-Domaiji, CEO of Wamid, a subsidiary of Saudi Tadawul Group, highlighted the importance of accessing data while maintaining rules and regulations. 

“Capital markets are driven by data. Data is there from more than 100 years ago. Everybody in capital markets is looking for data, using data to make decisions. As a capital market institution, it is necessary to find the balance of how we can innovate while maintaining the regulations,” said Al-Domaiji. 

He added that Wamid is aiming to play a major role in enabling the capital market industry in the Kingdom as it has announced a recent partnership with Google, with Saudi Arabia having strategic plans to adopt data and artificial intelligence in the sector.

Al-Domaiji said that Wamid is encouraging innovation in the capital market by focusing on two pillars, including data solutions and infrastructure technology. 

“In data solutions, we announced our partnership to launch our project for the data terminal. What we are planning to do is to offer a set of data that suits the demand of the market. We are focussing on satisfying the issuers, the capital market institutions, and the investors through a series of data with easier accessibility and good quality,” said Al-Domaiji. 

He added: “On the infrastructure side, we are helping the capital market to increase the access of institutional investors, especially for the HFTs (high-frequency trading). So, today, in Saudi Arabia, HFT trading is around 25 percent of the daily average trading.” 

Miri further said that data has become a strategic asset over time, and it is not just a global trend but a local and regional reality. 

“Data is a strategic asset. When we talk about monetization, data is a business in itself. This is a Spotify moment for data, where we are bringing and converging raw data into an on-demand revenue-generating machine,” added Miri. 

He said the capital market currently demands data that are not just numbers but enriched pieces of information, which should give foresight on what to do next. 

Miri also underscored the vitality of personalizing the data and integrating them into one single platform for better efficiency and quick decision-making. 

Regarding the future outlook of the importance of data in capital markets, Miri said: “Further down the road, if you have the data and if you have the liquidity, this could be the new asset class. A few decades ago, no one was thinking about carbon trading. In the future, we will be talking about data trading. Obviously, we have to balance it with data protection and regulation.” 

Underscoring the importance of datasets, Al-Domaiji added that data will become the “new currency for the capital market” in the future. 

Doug Peterson, special adviser and member of the board of directors at S&P Global, stressed the importance of data privacy and said: “The first question you have to ask from a governance standpoint is how I am going to protect my data. Do you want your data to be the one that is used in a model that is being built? Once it is there, that model is going to be using your data forever, and you are going to get paid for it.” 

He added: “I am really encouraged by what is happening in the Saudi market. We are very pleased at S&P Global to start building the local presence, because we think this is one of the most important markets in the future.” 

Katharine Furber, global head of emerging markets trading product at Bloomberg LP, said that fixed income space is seeing huge potential in the usage of data. 

“In the fixed income space, of course, it is the sell side indication, which indicates the desire to buy or sell a bond. But also trading data, and by trading data, I do not just mean what did they trade at what price. They want to build a rich story around the trade to learn as much as possible, which includes how many counterparties they asked on the trade; whether or not those counterparties responded to the trade request,” said Furber. 


ADNOC Drilling eyes $1bn in investments, Gulf expansion plans

ADNOC Drilling eyes $1bn in investments, Gulf expansion plans
Updated 41 min 12 sec ago
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ADNOC Drilling eyes $1bn in investments, Gulf expansion plans

ADNOC Drilling eyes $1bn in investments, Gulf expansion plans

RIYADH: UAE’s ADNOC Drilling is projecting significant growth, expecting over $1 billion in investments for 2025. The company also has plans to expand its operations into Oman and Kuwait, an official revealed.

In an interview with Arab News at the Capital Markets Forum, Youssef Salem, the company’s chief financial officer, discussed the expansion strategy, emphasizing the confidence ADNOC Drilling has in the long-term, robust plans of operating companies in these countries.

“For example, Kuwait Oil Co. is going to 4 million barrels of production capacity of oil per day, also launching for the first time their offshore operations. Similarly with Oman, a lot of tenders for new rigs to upgrade their drilling field,” he explained.

Salem shared that the firm’s expansion into these Gulf nations, along with its existing operations in Jordan, is based on establishing strong relationships with local operators. ADNOC Drilling has already pre-qualified with these entities and is focusing on organic growth through partnerships and joint ventures with established regional companies.

Regarding the financial impact of the investments, Salem noted that Kuwait is currently a large market with plans to expand to 200 rigs, while Oman is also growing its market to 100 rigs. “So, these two markets combined are almost three times the size of the UAE rig market, and hence, we see it as a very substantial opportunity,” he added.

Salem pointed out the ongoing shift in ADNOC Drilling’s revenue sources. “Today, if you look in general, the vast majority of our revenues come from the UAE. That is something that is evolving. For example, on the Enersol side, which is our global investment, we expect by next year to have around 7 percent of our net income to come from these global operations.”

The CFO elaborated on the company’s anticipated growth in 2025, with expectations of the onshore segment potentially crossing $2 billion, the offshore segment reaching over $1.4 billion, and oil field services surpassing $1.2 billion—an approximate 50 percent year-on-year growth.

“So, in 2025, we are expecting the onshore to potentially cross $2 billion, the offshore to cross $1.4 billion, and the oil field services to cross $1.2 billion, another almost 50 percent year-on-year growth,” Salem said.

He also revealed that the company plans to invest more than $1 billion in 2025.

“Out of that, $350 million to $550 million will be in additional rigs and oil field service equipment inside the UAE on our roadmap to reach 151 rigs by 2028,” he said.

Additionally, ADNOC Drilling is allocating $700 million to Enersol, its joint venture with Alpha Dubai, which focuses on investing in global energy technology companies, especially those involved in artificial intelligence.

Salem also highlighted the company’s recent acquisitions, noting that ADNOC Drilling completed four acquisitions worth $800 million in the previous year and plans further acquisitions totaling $700 million in 2025.

Discussing the company’s 2024 results, which reached a record revenue of $4 billion, Salem stated: “The onshore segment generated $1.9 billion of revenues from 95 land rigs, which is the largest drilling feed on the onshore side in the Middle East and North Africa. Similarly, the offshore segment generated $1.3 billion of revenue from 47 offshore rigs. Again, the largest, and then the oil field services, which is our fastest-growing segment, growing more than 100 percent year on year.” He also added that the oil field services segment generated $100 million in the fourth quarter and expects further growth in each segment in the upcoming year.

Regarding the forum’s agenda, Salem mentioned: “Tomorrow and the day after, we have two full days of investor meetings. Saudi investors obviously are a very key part of our shareholder register, but also, you have a lot of global investors who are flying into the forum to attend.”

He emphasized that the forum presents a valuable opportunity to engage with global investors.

Salem also spoke about ADNOC Drilling’s stock, saying it is the most covered in the UAE, with 18 analysts tracking it, and holds the highest number of buy recommendations in the Middle East, with 15 advisers endorsing it.

He acknowledged the increasing significance of Saudi Arabia’s financial sector, highlighting that the Kingdom hosts leading banks and noted that Tadawul is recognized for its liquidity and market activity, supported by a robust ecosystem of market makers, brokers, analysts, and investors.

“Similarly, on the Abu Dhabi exchange side in the UAE, one of the fastest growing exchanges across the trillion dollars of market capitalization between the Abu Dhabi exchange and the Dubai financial market,” Salem said, describing the event as the “biggest capital market in the world,” a collaborative gathering where regional exchanges unite.

On ADNOC Drilling’s operations in Saudi Arabia, Salem expressed the company’s deep commitment to its operations in the Kingdom. He explained that ADNOC Drilling operates multiple subsidiaries in close collaboration with Saudi Aramco, such as EV, a subsidiary from Enersol offering smart cameras for 3D visualization beneath wells. He also mentioned NTS, a manufacturing business with a significant facility in Dammam, employing over 100 people to manufacture drilling and service equipment for companies like Schlumberger, Halliburton, and Baker Hughes.

“For us, Saudi Arabia continues to be very strategic for our actual underlying operation, and we continue to find ways to build even deeper relationships,” Salem affirmed.

Regarding a potential dual listing on the Saudi Exchange, Salem shared that the company’s current focus is primarily on the Abu Dhabi Exchange, where they already enjoy significant liquidity, with over $20 million traded daily.

“We have the benefit of having a very liquid stock trading more than $20 million a day. Saudi investors are able to invest on the Abu Dhabi Exchange. We have a lot of the major Saudi sovereign wealth funds, pension funds, asset managers able to invest from here,” he said.

He added: “We do not see any technical limitation to their ability to invest, and we think we can continue to grow the Saudi investor base even more in ADNOC Drilling on the Abu Dhabi exchange.”