Saudi Arabia is trying to reduce its dependence on oil. Despite currently high oil prices, global demand for fossil fuels is declining as people and governments seek clean, renewable energy. Saudi Arabia is investing billions of dollars in advanced technology (Blockchain).
Saudi Arabia Companies Invest Billions of Dollars in Metaverse and Blockchain Technology
According to the official Saudi Press Corporation report this weekend, the Kingdom will invest more than $6.4 billion in total. NEOM Tech & Digital Firm, named after Saudi Arabia’s eponymous city of the future, has secured $1 billion in funding. The company plans to launch its Personal Virtual World, a 3D digital world where customers can collaborate with one another.
Saudi Arabia’s state oil company Aramco also intends to invest $1 billion in its corporate equity fund Prosperity 7 Ventures. In response to companies, the agency will spend money to buy future-savvy companies as well as companies working on blockchain. This can be expertise in encrypting digitally stored data.
Saudi Minister of Information Technology Abdullah Alswaha stated that the investments show the region is prompting the expansion of the digital financial system. Responding to the Saudi Press Corporation, he added that the effort should be in the higher interest of the Saudis and others in the Middle East and North Africa.
Saudi Arabia has long relied on revenue from oil sales. Crown Prince Mohammed bin Salman is particularly excited about the diversification of the financial system into new directions of applied science through his imaginative and forward-thinking plan for 2030.
The country has seen some success in its diversity efforts. Saudi Arabia reported an increase in non-oil exports through the end of 2021 and further increased mining capacity. On the funding front, Saudi Arabia’s public money fund has invested billions in Silicon Valley startups despite criticism for its lack of transparency.
Meanwhile, Saudi management has failed to attract significant foreign funds to the country and its foreign reserves have plummeted, Karen Younger wrote in International Affairs this week.