[ad_1]
UAE – The non-fungible token (NFT) industry in the UAE is expected to grow at an annual rate of 45.5% to reach $982.1 million by 2022, according to a Business Wire report last month.
The NFT industry is expected to grow at a compound annual growth rate (CAGR) of 32.1% during the period 2022-2028. The data shows that the value of NFT spending in the country will increase from $982.1 million in 2022 to $4.75 billion in 2028.
The adoption of new technologies is driving the growth of the NFT market in the UAE. More and more entrepreneurs, corporations and celebrities are entering this fast-growing industry. With the country long considered an ideal destination for doing business, the UAE appears to be the global center for the burgeoning NFT sector, according to the report.
“Consumers are interested in buying stories, buying experiences. When you buy a product, you’re just buying a physical product. But when you buy an NFT, you’re buying a lot of stuff that’s associated with it,” Arshad Zaheer, senior partner at YAAP, said in a statement. told Khaleej Times in an interview.
The biggest advantage of NFTs is that they live on the blockchain. “So every ownership can be traced. The content creator knows that my work cannot be copied and there is no possibility of any theft,” Zaheer said.
Business Wire reported that while a growing number of countries are seeking to impose stringent regulatory measures on NFTs, there has been a significant surge in the buying, selling and creation of NFTs in the UAE. “In the Middle East and Africa region, especially in the UAE, there has been an increase in NFT-related events. In 2022, Art Dubai – the largest contemporary art fair in the Middle East and North Africa region – welcomes nearly 100 international and local artists resellers, and digital collections across 17 platforms and galleries dedicated to displaying and selling NFTs,” the report states.
The country has also seen several innovative NFT marketplaces emerge in the past 12 months, making it relatively simple for the general public to buy, sell, and trade NFTs. “From NFT-based startups to cryptocurrency exchanges, several players are entering the UAE NFT market; the presence of several NFT marketplaces also supports the growth of NFT transaction value and volume, a trend that is expected to continue in the next three to four years. Gaining further momentum in the UAE during the year,” the report said.
A major positive of NFTs is the social impact they can have. Apparel company TOMS recently released an NFT on one of its signature shoe styles, with proceeds from the sale going to TOMS Impact Partner International Medical Corps. “So if you just buy this pair of shoes, the proceeds will be donated in one go. But as an NFT, every time you sell and resell, because there is a very smart contract associated with it, the proceeds will continue forever, said Zaheer.
The value of NFTs will rise through the scarcity of the design and the way people talk about it in social media content, Zaheer said. “So social causes are amplified on blockchain and NFTs, so brands are adapting to it,” he added.
Zaheer believes the opportunity for NFTs is huge. “Since the advent of social media about 15 years ago, brands have experimented with community building. It’s only going to get bigger over time,” he added.
Copyright © 2022 Khaleej Times. all rights reserved. Supplied by SyndiGate Media Inc. (Syndicate Information).
[ad_2]
Source link