Game on: The UAE is betting big on blockchain and winning | Opinion

by

As Ilman Shazhaev, a seasoned entrepreneur and expert in AI, gaming, and web3, I am deeply impressed by the UAE’s bold steps into the world of web3 gaming. With my background in scientific research and development, I have seen firsthand how technology can revolutionize industries. The UAE’s approach to building an ecosystem rather than just a market is truly commendable. It mirrors the role Silicon Valley played for commercialized technologies two decades ago.

As a researcher, I’ve witnessed the United Arab Emirates emerge as a global beacon for innovation, with gaming playing a pivotal role in its digital metamorphosis. In the year 2023, the nation’s gaming market soared past $420 million, maintaining a consistent annual growth rate of 8.94%. This vibrant sector is fueled by a fervent gaming community; nine out of ten UAE adults consider themselves gamers, and approximately one-quarter dedicate over 11 hours weekly to playing. These figures eclipse those in the MENA region, underscoring an extraordinary enthusiasm for gaming that the UAE is harnessing to construct a future grounded on blockchain technology.

In the transition of the gaming world towards web3 technology, the United Arab Emirates is taking daring steps to maintain its dominance within this field. The resurgence of blockchain gaming is evident in 2024, boasting an impressive 4.4 million daily active wallet users worldwide and securing a massive $110 million in funding during Q3. By 2025, it’s anticipated that blockchain gaming will generate a billion dollars for the UAE economy, thereby positioning the nation as a key player in the global web3 gaming market, estimated to reach a staggering $4 billion.

A rising star in web3 gaming

New research positions the United Arab Emirates as one of the world’s leading 15 countries pushing forward in the web3 gaming industry, joining forces with China and Vietnam. This active integration is a testament to the UAE’s bold efforts to incorporate blockchain technology into gaming. For the UAE, web3 represents a strategic resource—a means to revolutionize game creation, play, and monetization methods.

In the previous year, the Dubai Gaming Program 2023 unveiled an intricate blueprint aimed at enticing international gamers and local professionals. This event drew significant gaming studios like Ubisoft, many of which had already established a regional production center in Abu Dhabi. Moreover, initiatives such as Sandbox have discovered a suitable nurturing ground in Dubai, where the regulatory framework promotes smooth developments rather than hindering them.

In essence, there’s considerable backing in this region from top-tier game studios embracing web3 technology. Just as Silicon Valley paved the way for commercial tech innovation two decades ago, inspiring countless startups, UAE is now serving a similar role in the blockchain sector, particularly with respect to web3 gaming.

Building an ecosystem, not just a market

Despite other regions such as Southeast Asia and Europe also participating in the blockchain gaming sector, the UAE has taken the lead in creating extensive policies to draw in new projects and integrate this industry into its digital economy. The UAE isn’t primarily focused on establishing a market for web3 games; instead, it’s constructing an ecosystem that encompasses all aspects of web3. The goal is to establish the UAE as a crucial hub for everything related to web3, a goal that becomes clear through recent developments like Dubai’s DMCC Gaming Centre and Abu Dhabi’s AD Gaming program.

In Dubai lies the DMCC Gaming Centre, a cutting-edge gaming complex hosting over a hundred gaming ventures. This hub offers convenient access to a wealth of resources for these companies, such as potential funding sources, business incubators, office spaces, and a rich talent base brimming with skilled professionals.

As an analyst, I find myself immersed in ever-evolving landscapes that foster collaboration among developers, investors, and influential minds. Notably, Animoca Brands, a prominent figure in the blockchain gaming sector, has proactively engaged with Dubai’s community, reinforcing its commitment to global expansion and prestige.

As a researcher, I’m highlighting the progressive approach of Abu Dhabi’s AD Gaming initiative. Instead of just fostering gaming development, it’s constructing a self-nurturing ecosystem that draws and maintains skillful individuals. Local startups are provided with mentorship, financial backing, and access to a worldwide network, creating an ideal environment for growth. International developers find here a hospitable setting to experiment with and expand their projects.

Additionally, AD Gaming has collaborated with Unity Technologies, renowned for their gaming engine powering top-tier video games, to establish a development program. This initiative aims to provide hands-on experience in AI, VR, and game development to students, fostering their entry into the industry.

NFTs and venture capital: The winning web3 formula

In the UAE’s vision for web3 gaming, Non-Fungible Tokens (NFTs) play a crucial role that transcends their use in digital art or gaming items. Instead, they are essential components in building interactive and economy-driven game environments where players have significant influence.

Through a consistent strategy, the nation has become an attractive hotspot for international venture capital investments. Notable firms like Sequoia Capital and Andreessen Horowitz, along with other key players, have poured significant resources into blockchain gaming initiatives based in the UAE, demonstrating their faith in the region’s capacity to spearhead the industry.

“Polygon, a platform that enhances scalability on blockchain networks, serves as a strong demonstration of this collaboration. Supported by funds based in the Middle East and North Africa (MENA), Polygon has expedited its development processes, illustrating how strategic investments from the UAE are propelling projects to launch more swiftly and on a larger scale.

The future is bright, yet with challenges

Even though progress has been made in this area, there are still challenges to be met. Scalability continues to be a significant concern for blockchain gaming environments. As more users join these platforms, there’s an increasing need for fast and affordable transaction processing.

In terms of technological foundations and regulations for blockchain initiatives, the UAE stands robust but requires persistent enhancements to adapt to this rapidly changing landscape. However, these hurdles are not exclusive to the UAE. What makes it distinctive is its forward-thinking strategy in addressing these issues. The government’s well-defined regulatory system provides a stable environment, which is essential in an industry known for swift changes.

As an analyst, I’d like to highlight that the UAE’s aspirations transcend the realm of gaming alone. Their economic transformation strategy is geared towards integrating blockchain technology comprehensively across various sectors where it can potentially yield benefits. The insights gained from constructing a web3 gaming ecosystem are likely to be instrumental in reshaping other industries, such as finance and real estate. This broad applicability lends a strategic dimension to the UAE’s investment in blockchain gaming, with potential implications that extend far beyond just gaming.

Over the upcoming years, we anticipate witnessing an increase in revolutionary initiatives originating from the UAE. This could be due to local startups blossoming or established international firms setting up their regional bases. The impact of the UAE in the realm of web3 gaming is certain to expand significantly.

The aspirations of web3 gaming in the UAE are bold, yet they’re rooted in well-thought-out strategies and bolstered by an environment specifically tailored for prosperity. This ecosystem encompasses government programs, venture capital investments, and more, all functioning cohesively to encourage development and creativity. The region has successfully drawn top professionals, secured significant funding, and established a favorable regulatory framework, thereby establishing itself as a frontrunner in web3 gaming. Despite ongoing challenges such as scalability issues and market fluctuations, the UAE government’s forward-thinking strategy is actively tackling these obstacles with realistic solutions.

Add name…

Ilman Shazhaev is the founder and CEO of Farcana, a Bitcoin shooter game. Ilman is an entrepreneur with a strong scientific background in AI, gaming, and web3. He has developed healthtech and gametech solutions that are used by businesses and governments worldwide. A recognized expert by the United Nations, Ilman has authored 46 scientific papers and holds ten invention patents. His journey in web3 began in 2017 with the founding of Oneboost, and his passion for gaming led to the creation of Farcana, a game with a Bitcoin-backed prize pool. His work is reshaping the gaming landscape by integrating web3 elements into mainstream gaming.

Read More

2024-11-29 14:32