Saudi Arabia: The Rising Star of Web3 Innovation

Adaverse has published its first 'State of Web3 in Saudi Arabia' report, highlighting the country as a thriving hub for Web3 entrepreneurs, investors and talent around the world

Saudi Arabia has quickly established itself as an excellent location for Web3 innovation due to several factors. With 63% of its population under the age of 30 and a high rate of internet consumption, the country provides favourable conditions for digital innovation. The Saudi government supports Web3 through regulations, and significant financial resources are being channeled into the sector.

In the first quarter of 2024, startups in the MENA region secured $429 million, with Saudi startups attracting 51% of this funding.

The Saudi gaming industry is also booming, currently valued at $1.8 billion and expected to reach $6 billion by 2027. The fintech sector is also growing, with a market share of $746 million.

E-commerce is another significant area, generating $10 billion in 2023, with 34.5 million Saudi citizens shopping online. Adaverse forecasts that this sector will grow at an annual rate of 13.5% through 2027.

Web3 race in the Middle East

The UAE has established bodies to regulate digital assets such as the Virtual Assets Regulatory Authority (VARA) in Dubai and the Abu Dhabi Global Market (ADGM). Last year, ADGM’s Hub71 launched a $2 billion initiative to support startups in the Web3 sphere, also making the UAE a significant hub for crypto and blockchain projects.

Saudi Arabia’s $95 billion Public Investment Fund (PIF) is also active in the sector, reportedly in talks with Andreessen Horowitz (A16z), a leading venture capital firm backing Web3 startups. Golden Gate Ventures is also expanding its presence in the Gulf region, looking at Saudi Arabia as a promising new frontier.