Saudi Arabia Aims to Attract Huge Investments in Virtual World 

Saudi Arabia tops regional countries in adopting advanced technologies, including virtual reality. (Asharq Al-Awsat) 
Saudi Arabia tops regional countries in adopting advanced technologies, including virtual reality. (Asharq Al-Awsat) 
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Saudi Arabia Aims to Attract Huge Investments in Virtual World 

Saudi Arabia tops regional countries in adopting advanced technologies, including virtual reality. (Asharq Al-Awsat) 
Saudi Arabia tops regional countries in adopting advanced technologies, including virtual reality. (Asharq Al-Awsat) 

Saudi Arabia is seeking to attract substantial global investments in advanced technologies, especially in NEOM.  

A recent study indicated that the metaverse was the next generation of the internet, potentially heralding a new virtual, interconnected reality seamlessly woven into the world. 

The paper, "Creating a New Reality: The Metaverse in MENAT," prepared by the Boston Consulting Group, studied how to unlock the promises of the metaverse in the region, focusing on Saudi Arabia, the United Arab Emirates, Türkiye and Egypt.  

It said Saudi Arabia showed high readiness for metaverse adoption across key enablers, although some gaps remain in SME readiness, ICT talent, and cryptocurrency.  

Saudi Arabia boasts key infrastructure for the metaverse, with 98 percent of individuals using the internet.  

The Kingdom ranked first out of 130 countries for school internet access, fourth for home internet access, and fifth worldwide for median mobile internet connection speed.  

The study noted that Saudi Arabia enjoys high readiness across key technological metrics, including 74 percent smartphone subscription – high for the region and higher than the United States - and an average of 0.77 smartphones installed per person, which is in line with the regional average. 

The country is a leader in AR/VR headset sales and growth, with sales expected to double by 2025. It ranked 2nd (of 130 countries) in cybersecurity.  

Indications point to high consumer readiness for the metaverse: 60 percent of adults are familiar with the concept, and 78 percent of the population has basic ICT skills, which is high for the region.  

According to the study, Saudi Arabia has 82 percent social media penetration, 90 percent of the population uses YouTube, and residents spend 8.1 hours/ day on the internet.  

It also reported that Saudi Arabia currently ranks 70th in mobile apps developed per capita, low for the region.  

Fourteen percent of the population has advanced ICT skills, among the highest in the region, indicating a large base of potential content developers, but 60 percent of ICT companies say recruiting talent remains a challenge.  

Meanwhile, Geidea, a leading fintech company in the region, has partnered with Magnati, a leader in the payments solutions industry, to enable merchants to provide seamless customer experiences in Magnati MetaV.  

Magnati MetaV is the first metaverse marketplace in the MENA region.  

Magnati MetaV is a virtual platform where people can get a visual and sensory experience as they shop, learn, play games, attend events, and more online, all from the comfort of their homes.  

Furthermore, the head of Saudi Excellence, Abdullah al-Meleihi, said that by 2030, the total number of users of metaverse would reach about five billion people, according to the studies' predictions.  

Meleihi added that companies and venture capital funds invested $120 billion in the Metaverse between January and May 2022, which is more than double what was invested in 2021.  

He indicated that the real estate sector is the preferred investment, real or virtual. Real estate based on the metaverse is a plot of land on a platform that can hold anything digitally, such as an art exhibition or concert hall.  

The platforms that develop these lands generate revenue by selling or renting them to luxury brands and fashion houses trying to reach consumers in the metaverse.  

Meleihi pointed out that NEOM's technology and digital company changed its brand to "Tonomous" and is working to increase investment in the metaverse and AI.  

Tonomous invested about $1 billion in 2022 to promote AI and metaverse technologies, said Meleihi, adding that it aims to devote efforts to ensure NEOM is the first community compatible with the virtual world and cognitive sciences worldwide. 



Oil Extends Climb on Supply Fears, Trade War Concerns Cap Gains

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
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Oil Extends Climb on Supply Fears, Trade War Concerns Cap Gains

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)

Oil prices inched higher on Tuesday after threats by US President Donald Trump to impose secondary tariffs on Russian crude and attack Iran, though worries about the impact of a trade war on global growth capped gains.

Brent futures rose 21 cents, or 0.3%, to $74.98 a barrel at 0645 GMT, while US West Texas Intermediate crude futures climbed 22 cents, or 0.3%, to $71.70.

The contracts settled at five-week highs a day earlier.

"Near-term risks are skewed to the upside, with US threats of secondary tariffs on Russian and Iranian oil leading market participants to price for the risks of tighter oil supplies," said Yeap Jun Rong, market strategist at IG, Reuters reported.

However, broader themes still revolve around concerns of upcoming tariffs weighing on global demand, along with prospects of increased supply from OPEC+ and the US, said Yeap.

A Reuters poll of 49 economists and analysts in March projected that oil prices would remain under pressure this year from US tariffs and economic slowdowns in India and China, while OPEC+ increases supply.

Slower global growth would dent fuel demand, which might offset any reduction in supply due to Trump's threats.

After news of Trump's threats initially boosted prices on Monday, traders told Reuters they viewed the president's warnings to Russia, at least, as a bluff.

Trump, on Sunday, told NBC News that he was very angry with Russian President Vladimir Putin and would impose secondary tariffs of 25% to 50% on Russian oil buyers if Moscow tries to block efforts to end the war in Ukraine.

Tariffs on buyers of oil from Russia, the world's second largest oil exporter, would disrupt global supply and hurt Moscow's biggest customers, China and India.

Trump also threatened Iran with similar tariffs and bombings if Tehran did not reach an agreement with the White House over its nuclear program.

"For now, it appears to be just a threat to Russia and Iran. However, if it becomes a reality, it creates plenty of upside risk to the market given the significant oil export volumes from both countries," said ING commodities strategists on Tuesday.

The market will be watching for weekly inventory data from US industry group the American Petroleum Institute later on Tuesday, ahead of official statistics from the Energy Information Administration on Wednesday.

Five analysts surveyed by Reuters estimated on average that US crude inventories fell by about 2.1 million barrels in the week to March 28.