Introduction
Long dependent on its oil riches, Saudi Arabia is now embarking on a transformational journey towards economic diversification. The kingdom is embracing cutting-edge technology including blockchain, artificial intelligence (AI), and the expanding gaming industry thanks to its ambitious Vision 2030 project. This article analyses Saudi Arabia’s entry into the gaming sector and the country’s growing enthusiasm for Web3 as a means of economic diversification.
Diversification through Vision 2030
Saudi Arabia launched Vision 2030 to minimize its reliance on oil revenue and guarantee its economic future. This bold plan includes numerous efforts targeted at broadening the economy. One of the most significant of these is the kingdom’s adoption of the latest technologies and their use in numerous fields.
The Gaming Revolution
Gaming is a prominent industry that has Saudi Arabia’s interest rates. Saudi Arabia, along with the United Arab Emirates, is accelerating the expansion of the Middle Eastern gaming business due to its young and technologically adept populace. A study by the Boston Consulting Group claims that Saudi Arabia accounts for 45% of the $1.8 billion-plus regional gaming business. Significant game revenue, as reported by game content studio Allcorrect, serves as another example of this upsurge.
The Saudi Esports Federation was created in 2017 to oversee and develop the country’s gaming sector. More recently, Saudi Arabia made news by investing $38 billion in the gambling industry through its Public Investment Fund, with plans to establish itself as a major hub for the industry.
The Intersection of Web3 and Gaming
Saudi Arabia is looking at the Web3 landscape in the midst of this gaming renaissance. The next generation of the internet, known as Web3, is characterized by decentralized platforms and ownership of digital assets, which is perfectly in line with how the game industry is developing. Yat Siu, a co-founder of Animoca Brands, commented on Saudi Arabia’s interest in Web3, saying that the country sees the promise of blockchain-based gaming, in which users actually own in-game goods.
Although Saudi Arabia has a high-level understanding of Web3, the country has difficulty using this technology because there are no clear laws governing cryptocurrencies and virtual assets. On the other hand, places like Hong Kong, Japan, and the UAE have given crypto and Web3 explicit parameters, allowing them to plan their operations more successfully.
Learning and Leading
The development of Web3 gaming applications in Saudi Arabia is still ongoing, and the country is actively looking for advice from industry professionals. Yat Siu noted that Saudi Arabia stands out from many other regions in that it is keen to learn and adapt. It is clear that the kingdom wants to lead the way in innovation and development.
The Path to Web3 Mass Adoption
Adoption of Web3 calls for a fundamental adjustment in users’ attitudes towards financial literacy, whether in the gaming or other industries. Siu emphasized that genuine Web3 users must have financial literacy that goes beyond that of traditional bankers. Given their understanding of asset value and network effects, Web3 users are more like investors than Web2 users, who predominantly engage in labor-based activities.
John Linden, CEO of Mythical Games, recognised the industry’s delayed adoption of Web3. He highlighted that rather than only offering chances for making money, developers should concentrate on improving the customer experience. Ones that gamers may relate to in the Web3 era are new game models, the creator economy, digital supply networks, and ownership of in-game assets.
Conclusion
Due to its desire to diversify its economy, Saudi Arabia is now looking into blockchain gaming and Web3. The monarchy exhibits a drive to lead in innovation as it develops its gaming sector and explores Web 3. Despite ongoing difficulties, there are substantial potential advantages for both Saudi Arabia’s economy and the global gaming sector. As the rest of the world looks on, Saudi Arabia’s foray into Web3 and blockchain gaming continues to take intriguing new turns.
