Web3 to become Saudi Arabia’s new oil as it dominates the industry
Adaverse just dropped its first-ever “State of Web3 in Saudi Arabia” report, and it positions Saudi as the next big thing for Web3 entrepreneurs, investors, and talent from all over the world.
Saudi’s digital playground
Saudi Arabia is becoming a hot spot for Web3, and there are some solid reasons for it. For starters, 63% of the population is under 30, and nearly everyone is online. The government’s backing Web3 with friendly regulations, and there’s plenty of money flowing in.
In the first quarter of 2024, startups in the Middle East and North Africa (MENA) region pulled in $429 million from 163 deals. Saudi startups grabbed 51% of that cash.
The gaming industry is also booming in Saudi Arabia, worth $1.8 billion right now and expected to hit $6 billion by 2027. Fintech is also picking up steam, with a market size of $746 million.
E-commerce is massive too, pulling in $10 billion in 2023, with 34.5 million Saudis shopping online.
Adaverse thinks this sector will grow at a 13.5% annual rate until 2027. And don’t forget about proptech, which is valued at $763 million and is key to the country’s Vision 2030 economic goals.
Saudi vs. UAE: The Web3 race
The Middle East has long been making big moves in Web3. The UAE, for instance, has set up digital asset regulators like the Virtual Assets Regulatory Authority (VARA) in Dubai and the Abu Dhabi Global Market (ADGM) in Abu Dhabi.
Last year, ADGM’s Hub71 rolled out a $2 billion initiative to support Web3 startups. Thanks to its crypto-friendly policies, the UAE has become a hotbed for crypto and blockchain projects. Now, Saudi Arabia is stepping up to show it can be a major player in Web3 too.
Outlier Ventures, based in the UK, is launching a Web3 accelerator program in partnership with Saudi’s National Technology Development Program (NPDP). CEO Stephan Apel said that:
“The level of dedication, education, and international experience of the highly skilled workforce, as well as the people coming to the Kingdom, is very interesting to see.”
He pointed out the fast development and huge potential of Saudi’s Web3 ecosystem. Saudi Arabia’s $95 billion Public Investment Fund (PIF) has been busy too.
They’ve reportedly been in talks with Andreessen Horowitz (A16z), one of the leading VC firms backing Web3 startups.
Animoca Brands has teamed up with King Abdulaziz City for Science and Technology (KACST) in Riyadh to boost the gaming ecosystem.
Golden Gate Ventures is also expanding its offices to the Gulf region, seeing Saudi Arabia as the next big frontier.
