PRESS RELEASE
Riyadh, Saudi Arabia, 1 August 2024
Adaverse proudly announces the release of its inaugural "State of Web3 in Saudi Arabia," a landmark publication aimed at positioning Saudi Arabia as a prime destination for Web3 entrepreneurs, investors, and talent from around the globe. This comprehensive report provides a detailed analysis of the Kingdom’s rapidly evolving Web3 ecosystem, underscoring its readiness for international players to enter, invest, and launch their ventures in Saudi Arabia.
Report Highlights Include:
1/ Web3 potential: Saudi Arabia is a prime market for Web3 due to its young, highly digitized population (63% under 30, 99% internet-connected), supportive government with Web3-friendly legislation, and abundant funding opportunities. In Q1 2024, MENA startups secured $429M across 163 deals, with Saudi startups receiving 51% of the funding, highlighting lucrative opportunities for entrepreneurs and investors.
2/ Key sectors: Significant opportunities in Saudi's Web3 space include fintech for enhanced financial transparency and efficiency, blockchain integration in supply chain management, real estate, digital identities, and growth in entertainment and gaming with blockchain-based platforms.
Here are the key sectors in Saudi Arabia offer an especially high potential for Web3 disruption:
Gaming: Market size of $1.8 billion, projected to reach $6 billion by 2027.
Fintech: Market size of $746 million with emerging verticals in payment solutions, lending platforms, and business tools.
E-commerce: Generated $10 billion in 2023, with 34.5 million Saudis shopping online and a projected CAGR of 13.5% until 2027, creating massive opportunities for entrepreneurs and investors.
Proptech: Valued at $763 million, showing its significance in achieving Vision 2030's economic goals.
3/ Startups: The Saudi Web3 startup ecosystem, with a notable concentration in user-facing applications, indicates growing interest in DeFi, GameFi, and SocialFi. However, the scarcity of foundational infrastructure and protocol startups presents significant opportunities for entrepreneurs and investors.
4/ Investors: Saudi Arabia's Web3 ecosystem is experiencing remarkable growth, fueled by a blend of local and international investors. This synergy is creating fertile ground for startups, merging local market knowledge with opportunities for international expansion.
5/ Need for Talent: A major insight from interviews with startups and investors highlights the strong demand for Web3 talent and the existing shortage in this field. This gap presents a significant opportunity for more educational initiatives to train local talent, as well as for global talent to relocate to Saudi Arabia and secure employment.
6/ Look to the future: Despite the promising outlook, challenges remain. Regulatory uncertainty, the need for greater awareness and education around Web3 technologies, and concerns about technological infrastructure and cybersecurity are key hurdles. However, these challenges also present opportunities for entrepreneurs and investors to shape the future of Saudi Arabia's Web3 ecosystem.
Quote from Vincent Li, Founding Partner of Adaverse:
"Since 2021, we have been actively building in the Web3 space across Asia and Africa. In 2023, we were excited to expand our efforts to the Middle East, with Saudi Arabia being an obvious choice due to its young, tech-savvy population and supportive, forward-looking government. Numerous industries in Saudi Arabia are poised to adopt Web3 technology as part of the nationwide effort to digitize. We believe that Web3 technology can generate new sub-sectors, empowering users and creating new forms of interaction and value and accelerating Vision 2030.”
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