The metaverse, which is being seen as the future of business and human interaction, is projected to reach $5 trillion by 2030, according to the latest report from McKinsey & Company.
E-commerce, which has grown significantly because of the coronavirus pandemic in the past two years, is poised to make up more than half of the metaverse market at $2.6tn, the consultancy said in Value Creation in the Metaverse. It will be followed by virtual learning ($270 billion), advertising ($206bn) and gaming ($125bn).
The metaverse is a digital space that allows users to communicate and move virtually in their three-dimensional avatars or digital representations. It is part of Web3, which is being promoted as the next iteration of the World Wide Web, with blockchain, decentralisation, openness and greater user utility among its core components.
“The metaverse represents a strategic inflection point for companies … it presents a significant opportunity to influence the way we live, connect, learn, innovate and collaborate,” Eric Hazan, senior partner at McKinsey, said.
Investors’ enthusiasm is at its peak, the report found. So far in 2022, companies, venture capital and private equity firms have invested more than $120bn in the metaverse, 110 per cent more than last year.
Several factors are fuelling the investment growth, including technological advances, demographic tailwinds, consumer-led brand marketing and engagement, and increasing marketplace readiness, McKinsey said.
The consultancy surveyed more than 3,400 consumers and senior executives across the Asia-Pacific, China, Europe and the US. It also analysed five industries — apparel, fashion and luxury; consumer packaged goods; financial services; retail; and telecoms, media and technology.
Today’s version of the metaverse is largely driven by gaming sector, while new applications emerge in socialising, fitness, commerce, virtual learning and other uses, the report said. Currently, more than three billion gamers worldwide have access to different versions of the metaverse.
“While the idea of connecting virtually has been decades in the making, it is now increasingly real, meaning real people are using it and spending real money and companies are betting big,” said Lareina Yee, senior partner at McKinsey.
McKinsey’s research revealed almost six in 10 (59 per cent) consumers prefer at least one metaverse experience over its physical alternative.
Some of these include shopping — purchasing physical or virtual goods (79 per cent), attending virtual social events or playing social games (78 per cent) and exercising using virtual reality (76 per cent).
Business leaders also recognise the metaverse’s potential to drive margin growth. Nearly 95 per cent of leaders admitted they expect the technology to have a positive impact on their industry within five to 10 years, while 31 per cent said it will change the way their industry operates.
Nearly a quarter of them expect metaverse to drive more than 15 per cent of their organisation’s total margin growth in the next five years.
“The metaverse has put us at the cusp of the next wave of digital disruption. It’s transformative … it will likely have a major impact on our commercial and personal lives,” said Tarek Elmasry, senior partner at McKinsey.
In the Middle East, the UAE is leading the metaverse movement.
Dubai Metaverse Strategy aims to increase the contribution of the metaverse sector to Dubai’s economy to $4bn by 2030 and increase its contribution to the emirate's economy to 1 per cent, according to official data.
In May, Dubai's Virtual Assets Regulatory Authority entered into the metaverse with the establishment of its Metaverse HQ, making it the first regulator to have a presence in the emerging digital space.
Last month, the UAE host first metaverse wedding. The technology allows couples to choose a venue, a customised cake and a wedding dress.
Members of the public can also meet and interact with Ajman Police in the metaverse, where avatars of officers will answer people's inquiries. Seven officers from Al Nuaimaiah Police Station have been trained in the metaverse technology.
Super Bowl LIII schedule
What Super Bowl LIII
Who is playing New England Patriots v Los Angeles Rams
Where Mercedes-Benz Stadium in Atlanta, United States
When Sunday (start time is 3.30am on Monday UAE time)
Salah in numbers
€39 million: Liverpool agreed a fee, including add-ons, in the region of €39m (nearly Dh176m) to sign Salah from Roma last year. The exchange rate at the time meant that cost the Reds £34.3m - a bargain given his performances since.
13: The 25-year-old player was not a complete stranger to the Premier League when he arrived at Liverpool this summer. However, during his previous stint at Chelsea, he made just 13 Premier League appearances, seven of which were off the bench, and scored only twice.
57: It was in the 57th minute of his Liverpool bow when Salah opened his account for the Reds in the 3-3 draw with Watford back in August. The Egyptian prodded the ball over the line from close range after latching onto Roberto Firmino's attempted lob.
7: Salah's best scoring streak of the season occurred between an FA Cup tie against West Brom on January 27 and a Premier League win over Newcastle on March 3. He scored for seven games running in all competitions and struck twice against Tottenham.
3: This season Salah became the first player in Premier League history to win the player of the month award three times during a term. He was voted as the division's best player in November, February and March.
40: Salah joined Roger Hunt and Ian Rush as the only players in Liverpool's history to have scored 40 times in a single season when he headed home against Bournemouth at Anfield earlier this month.
30: The goal against Bournemouth ensured the Egyptian achieved another milestone in becoming the first African player to score 30 times across one Premier League campaign.
8: As well as his fine form in England, Salah has also scored eight times in the tournament phase of this season's Champions League. Only Real Madrid's Cristiano Ronaldo, with 15 to his credit, has found the net more often in the group stages and knockout rounds of Europe's premier club competition.
The specs: 2017 Dodge Ram 1500 Laramie Longhorn
Price, base / as tested: Dhxxx
Engine: 5.7L V8
Transmission: Eight-speed automatic
Power: 395hp @ 5,600rpm
Torque: 556Nm @ 3,950rpm
Fuel economy, combined: 12.7L / 100km
THE SPECS
Engine: 2.0-litre four-cylinder turbo
Transmission: eight-speed automatic
Power: 258hp at 5,000-6,500rpm
Torque: 400Nm from 1,550-4,400rpm
Fuel economy, combined: 6.4L/100km
Price, base: from D215,000 (Dh230,000 as tested)
On sale: now
David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
Anghami
Started: December 2011
Co-founders: Elie Habib, Eddy Maroun
Based: Beirut and Dubai
Sector: Entertainment
Size: 85 employees
Stage: Series C
Investors: MEVP, du, Mobily, MBC, Samena Capital
UAE currency: the story behind the money in your pockets
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UAE currency: the story behind the money in your pockets
If you go…
Emirates launched a new daily service to Mexico City this week, flying via Barcelona from Dh3,995.
Emirati citizens are among 67 nationalities who do not require a visa to Mexico. Entry is granted on arrival for stays of up to 180 days.
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Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
The biog
Name: Mohammed Imtiaz
From: Gujranwala, Pakistan
Arrived in the UAE: 1976
Favourite clothes to make: Suit
Cost of a hand-made suit: From Dh550
More from Rashmee Roshan Lall
Key figures in the life of the fort
Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.
Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.
Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.
Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.
Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.
Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.
Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.
Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.
Sources: Jayanti Maitra, www.adach.ae
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
UAE currency: the story behind the money in your pockets
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Killing of Qassem Suleimani
How has net migration to UK changed?
The figure was broadly flat immediately before the Covid-19 pandemic, standing at 216,000 in the year to June 2018 and 224,000 in the year to June 2019.
It then dropped to an estimated 111,000 in the year to June 2020 when restrictions introduced during the pandemic limited travel and movement.
The total rose to 254,000 in the year to June 2021, followed by steep jumps to 634,000 in the year to June 2022 and 906,000 in the year to June 2023.
The latest available figure of 728,000 for the 12 months to June 2024 suggests levels are starting to decrease.
MATCH INFO
Uefa Champions League, last 16, first leg
Ajax v Real Madrid, midnight (Thursday), BeIN Sports
LIVING IN...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
