Can We Call the United Arab Emirates the Center of NFT Culture?
Bogdan LashchenkoRecently Research And Markets has reported about a research about Africa and countries of the Middle East. According to the analysis, the numbers of the NFT market have grown up dramatically. They also stated that at the end of December the total capitalization in the region is going to surpass $3,420,000,000. Now they have switched to analyzing the United Arab Emirates that have made a great contribution to development of the market of non-fungible tokens.
The research by the analysts from Research And Markets, claims that the capitalization of the NFT market in the United Arab Emirates exceeds $982,100,000. They also report an exponential growth in 2022 that amounts to 45,5%.
Previously Research And Markets managed to achieve other interesting results. Having run the research, they made a conclusion that the annual tempo of the growth in the UAE would be 32,1% in the period from 2022 till 2028. As for the market of the whole MENA region (Central Asia and North Africa), it is expected to grow up to $4,746,300,000.
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Due to the development of the NFT culture, recently more and more celebrities have been joining the extraordinary market. It is worth mentioning that such figures in the UAE in 2022 are surprising as the cryptocurrency industry is not going through its best times now. 2022 boosted the crypto-winter effect and in recent times the market of non-fungible tokens has suffered particularly hard.
Previous research shows that NFT tokens have lost approximately 92% of the total capitalization this year. Nevertheless, even if the cryptocurrency and NFT market show negative results throughout the world, many large companies keep on developing their interests in non-fungible tokens and metaverses, two sectors of the crypto-market that oftentimes border between each other.
For example, the fashion houses Prada, Dolce & Gabbana, and also Nike and other companies are specialized on designing clothes and keep on releasing collections with non-fungible tokens. Nike even decided to set up their own NFT platform for selling and purchasing such tokens. Now Swoosh is being beta-tested and will be released at the beginning of 2023.
The mentioned companies also open marketing departments that attract clients through NFT, giving them special bonuses for purchases. For instance, Prada sold their collection on 1 December with limited editing of 50 capsules where apart from metaverse items customers could get an invitation to a fashion show and exclusive excursions.
Also, Porsche is not staying away from NFT tokens and they announced a release of a collection of virtual cars that will be created for users with their individual preferences. The German company is not the only car manufacturer that is standing out among its peers.
The French car company Renault succeeded in creating the first in the world industrial metaverse where they added copies of their factories. Therefore, the French managed to automate some processes and facilitate solutions to logistics issues. According to experts, this approach will help them to save up to 50% or even 60% of resources in some aspects.
Returning to the topic of the NFT market in the United Arab Emirates, we should mention that the market is developing rapidly there. The UAE is one of a few places where non-fungible tokens do not lose their relevance while investors keep supporting the interests in the culture.
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Most of other countries are trying to solve the issue of regulating NFT items while there is no such thing in the United Arab Emirates so the interest in tokens is growing bigger and bigger. Apart from regular trades, production of new NFTs is developing there.
One clear indicator of the heightened interest in NFT in the UAE is an event that is planned for the beginning of 2023, Art Dubai. This NFT exhibition will welcome guests from Middle East and North Africa. Over 100 art dealers will visit Art Dubai to show their art and hold an auction. The collection will demonstrate 17 various platforms and galleries where NFT enthusiasts will find something they will like.
Recently a few creative platforms with NFT tokens have been formed. They are supposed to simplify the process of purchasing and exchanging NFTs for users. Crypto Arabs deserve to be called one of the main platforms of this kind. As for major players that join the NFT market, we can see interesting startups based on non-fungible tokens and regular cryptocurrency exchanges here. Analysts believe that in the United Arab Emirates the NFT sector is going to become predominant for a while leaving behind all other aspects of the cryptocurrency market.
Speaking about the UAE, we have to mention Emirates Airlines. In April 2022, they reported that they were going to enter the world of metaverses, which started to gain popularity this year, and non-fungible tokens.
Emirates Airlines told about their plans to create a metaverse that will appeal not only to regular users but also aeroplane pilots. Therefore, Emirates Airlines want to stick to their field even in the metaverse world.
At the moment Emirates Airlines are still developing their projects, however, they promised that in the relatively nearest future they will be able to regales them. The Metaverse from Emirates Airlines has to appear in several months.
What it will be like and why it will catch regular users is still unclear, however, we can assume that it will have a direct connection to planes. We can make more daring assumptions like they could try to make a simulation of aeroplane control, but it is unlikely due to the level of development of modern technologies. In any case, the project is intriguing and many users are looking forward to seeing what Emirates Airlines can show.
The final fact about support and development of the NFT culture in the United Arab Emirates is worth remembering what Emirates Post did for the 50th anniversary of the UAE National Day. The post operator made stamps as non-fungible tokens. Therefore, the United Arab Emirates supports development of NFTs at the state level and does not limit them with strict regulations which results in huge interest of the citizens.
That is why the UAE is to become (or has already become) the culture capital of NFT items. Art Dubai must show investors’ level of interest in non-fungible tokens. The organizers of one of the most famous auctions, Sotheby's, reported that this way of selling shows the real value of non-fungible tokens and in a way ignores the market with its fixed prices.
Bogdan Lashchenko – content manager at EgamersWorld.Bogdan has been working at EGamersWorld since 2023. Joining the company, he began fillin the site with information, news and events.