January 22, 2023

UAE NFT Industry Expected to Reach $4.75 Bln by 2028

UAE NFT Industry Expected to Reach $4.75 Bln by 2028 Featured Image

NFTs in UAE

The NFT industry in the UAE is predicted to increase by 45.5% on an annual basis to hit $982.1 million in 2022, a BusinessWire report last month revealed.

According to data, the NFT industry in the UAE is anticipated to record a compounded annual growth rate (CAGR) of 32.1% from 2022 to 2028. The report expected that the NFT value in the Gulf country would grow from $982.1 million to $4.75 billion by 2028.

The report pointed out that the UAE is emerging as a promising hub for digital collectibles, saying the growth of the NFT market is driven by the mass adoption of NFTs by businesses, entrepreneurs, and celebrities.

In an interview with Khaleej Times, Senior Partner at YAAP Arshad Zaheer lauded NFTs’ advantages as their ownership is tracked on the blockchain, adding the content creator knows that his work cannot be copied. He believed that the NFTs would have bigger communities in the next years similar to the emergence of social media almost a decade and a half ago.

Zaheer noted: “Consumers are interested in buying into stories, in buying into experiences. When you’re buying a product you’re just buying the physical product. But when you are buying an NFT you’re buying a whole lot of things that are linked with it.”

The report pointed to a flourishing in the NFT industry in the Middle East and Africa region, especially in the UAE, at a time when some countries impose restrictions on buying and selling NFTs, citing Art Dubai’s host of around 100 international and local art dealers and a digital collection of 17 platforms and galleries dedicated to showcasing and selling NFTs in 2022.

It also referred to several players who entered the NFT market in the UAE, varying between NFT-based start-ups and cryptocurrency exchanges, predicting that NFT trading would gain more momentum in the coming three or four years in the Middle Eastern country.

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