<p>Saudi Arabia is intensifying its efforts to diversify its economy as part of its ambitious Vision 2030 initiative. In a move away from its traditional reliance on oil, the kingdom is embracing cutting-edge technologies like blockchain and artificial intelligence (AI) and is delving into the burgeoning gaming industry.</p><p>That’s the view of Animoca Brands Co-Founder Yat Siu, who, in a recent<a href="https://cointelegraph.com/news/saudi-arabia-looks-to-blockchain-gaming-and-web3-to-diversify-economy" rel="noopener noreferrer nofollow"> interview</a> with Cointelegraph, highlighted Saudi Arabia’s keen interest in Web3, emphasizing the country’s partnerships with entities like The Sandbox and Animoca itself.</p><h2 id="header-0">Driving gaming growth</h2><p>Siu believes that Saudi Arabia is making a concerted effort to explore the possibilities of the new iteration of the internet, particularly in the realm of Web3 gaming and blockchain gaming, where asset ownership is verified on the blockchain. He stated:</p><p>“I think Saudi [Arabia] understands the principle that Web3 gaming or blockchain gaming — the one that we actually prove the owner assets — is going to be the future of gaming.”</p><p>While Saudi Arabia has yet to make a significant global impact in game and AI development, experts in the emerging field of Web3 believe that the kingdom’s investments in gaming could have far-reaching implications.</p><p>The Boston Consulting Group reported that Saudi Arabia accounts for 45% of the region’s gaming sector, with a total value exceeding $1.8 billion. It also boasts one of the highest game revenues in the area, according to Ireland-based gaming content creator, Allcorrect.</p><h2 id="header-1">$38 billion gaming fund</h2><p>Siu is not the only one to believe in the efficacy of Saudi’s Web3 efforts. Poland-based Web3 gaming platform GameSwift also articulated a similar view recently. In a<a href="https://twitter.com/GameSwift_io/status/1696915806603608413?s&#61;20" rel="noopener noreferrer nofollow"> tweet thread</a> published last month, the firm acknowledged the $38 billion gaming fund launched by the Saudi royal family.</p><p>That initiative involves a Gaming Hub, the first incubator for esports in the world. The objective of the hub is to empower early-stage studios and provide an accelerator program for their growth, with direct investment going to top ten studios.</p><h2 id="header-2">Cryptocurrency uncertainty</h2><p>Despite its understanding of the high-level concept of Web3, Saudi Arabia faces uncertainties regarding the integration of cryptocurrencies and virtual assets into gaming due to the absence of clear regulations. Siu explained that while Saudi Arabia is proactive in investigating cryptocurrencies, other regions like Hong Kong, Japan, and the United Arab Emirates (UAE) offer more clarity on what can be done with crypto and Web3.</p><p>Siu noted that Saudi Arabia is actively seeking information on best practices and strategies from experts like Animoca. To encourage Web3 adoption, financial literacy is key, according to Siu.</p><p>He emphasized that users must have a certain level of financial literacy to fully embrace Web3, as it goes beyond traditional banking. Understanding the potential value of digital assets and their network effects is crucial for Web3 users.</p><p>Saudi Arabia is not the only Gulf nation to pivot to Web3. Oman is<a href="https://medium.com/&#64;coinness.gl/omans-crypto-mining-expansion-signals-further-economic-diversification-2d721aa5af37" rel="noopener noreferrer nofollow"> looking</a> to do likewise based on similar rationale — to diversify away from an oil-based economy. The UAE is also actively working towards creating the right conditions to nurture Web3 startup businesses.</p>

Saudi Arabia Looks to Diversify Through Web3

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