Africa & Middle East NFT Market Intelligence and Future Growth Dynamics Databook – 50+ KPIs on NFT Investments by Key Assets, Currency, Sales Channels - Q2 2022
According to TechInsight360’s Q2 2022 NT Survey, NFT industry in Africa & Middle East is expected to grow by 48.3% on an annual basis to reach US$3420.4 million in 2022.
The NFT industry is expected to grow steadily over the forecast period, recording a CAGR of 34.3% during 2022-2028. The NFT Spend Value in the country will increase from US$3420.4 million in 2022 to reach US$18215.7 million by 2028.
In the Middle East and Africa region, particularly in the UAE, there has been an uptake in NFT-related activities. In 2022, Art Dubai – the largest contemporary art fair in the MENA region – welcomed nearly 100 international and local art dealers and a digital collection of 17 platforms and galleries dedicated to showcasing and selling NFTs. While more and more countries are seeking to impose strict regulatory measures on NFTs, there has been a notable surge in the buying, selling, and creation of the NFTs in the UAE.
Over the last 12 months, several innovative NFT marketplaces have also emerged in the country, which has made it relatively simpler for the general public to buy, sell, and trade in NFTs. From NFT-based startups to cryptocurrency exchanges, several players are entering the UAE NFT market; the presence of several NFT marketplaces has also supported the rise in NFT trading transaction value and volume, the trend expected to gain further momentum over the next three to four years in the UAE.
The rise of blockchain-based gaming is expected to drive NFT market growth in the UAE
With blockchain-based gaming, people are frequently awarded cryptocurrencies or NFTs for participating in gaming tournaments.
The United Arab Emirates has always welcomed new and emerging technology. For NFTs as well, the UAE has adopted the NFT technology. For the UAE's 50th birthday celebration, the postal operator in the country issued NFT stamps to celebrate the federation's National Day.
Dubai Culture also ventured into the NFT space with the NFT curatorial platform MORROW. Therefore, the growing adoption of NFTs has resulted in a thriving NFT scene in the UAE, and the trend is expected to further accelerate over the next three to four years as global players look to capitalize on the growing UAE market.
Big firms entering the NFT sector to capitalize on the growing market and boost their growth
With Dubai and Abu Dhabi announcing that crypto-related activities and businesses are legal in the UAE, big firms are entering the NFT sector to capitalize on the growing global market and boost their growth. For instance,
• In April 2022, Emirates Airlines announced its entry into the metaverse and NFT sectors. The firm is expected to bring services and a series of digital collectibles to enhance the flyers' metaverse experiences. The firm also announced that the NFT and the metaverse projects are already underway and expected to launch in the coming months.
• The firm has also repurposed its Emirates Pavilion at the Expo 2020 site as a contact point for people who can contribute to the firm's future-focused projects, including those related to NFTs and metaverse.
• In December 2021, Falcon Society also announced the launch of the UAE-based NFT line. The Falcon Society is a collection of 4,000 unique Falcon Humanoid NFTs living on the Ethereum blockchain. Each NFT serves as the users' Society membership card and provides access to members-only benefits.
These emerging technologies have revolutionized the art and pop culture world, creating a dynamic market for creators and fans in the Middle East and Africa region.
In Saudi Arabia, the NFT market has recorded strong growth over the last 12 months and is expected to gain further momentum over the next three to four years as the country looks to become a creative hub in the Middle EastTechInsigh360 expects NFTs to play a very important part as the country seeks to become a creative hub in the Middle East. With several regional and global players entering the NFT market in the country, the market is expected to record strong growth over the next three to four quarters.
The government's efforts in promoting the NFTs are also expected to drive the popularity of the digital asset among the general public, which will further assist the market growth in Saudi Arabia. Moreover, amid the strong demand for NFTs among Saudi Arabians, NFT marketplaces raise funding rounds to further accelerate their growth.
While there are no specific regulations relating to the buying, selling, and trading of NFTs in Saudi Arabia, the government support in favor of the NFTs is expected to drive the market's growth from the short to medium-term perspective.
To further promote the NFT market and drive awareness among collectors, artists, and curators, the Ministry of Culture in Saudi Arabia launched an NFT digital art forum in partnership with Sotheby's and the Visual Arts Commission.
In Egypt, non-fungible tokens (NFTs) are becoming increasingly popular among digital artists. While the NFT market is still in its early stages of development and not as mature as some other markets, the industry is growing as more and more artists launch their innovative art collections as an NFT.
As the hype and interest in the market continue to develop well, the country's NFT sales volume and value are also increasing. Several thousands of digital artworks created by digital artists in the country are planning to trade on NFT platforms. In Egypt, digital assets tokenized as NFTs are mostly limited to digital real estate, games, and artwork. However, as the market continues to mature over the next four to eight quarters, Techinsight360 expects more innovation in the Egyptian NFT industry.
Several NFT project launches inspired by Egypt's history and monuments driving industry growth
Over the last 12 months, many projects have been launched inspired by ancient Egypt's history and monuments. For instance,
• Sphynx Cats, the NFT project inspired by ancient Egyptian history, is a collection of 9,099 NTs, with one having different traits than the other.
These project launches in the country are driving industry growth and awareness among the general public in Egypt. TechInsight360 expects the trend to continue from the short to medium-term perspective, further supporting market growth over the next four to eight quarters
Similarly, prominent South African figures launching NFTs drive market growth and awareness. All film stars, singers, and sports players have entered the NFT space globally; similar trends are visible in South Africa, where many prominent figures are launching NFTs.
Big names include cricketer AB de Villiers, influencer Diipa Khosla, musician Goldfish and the Kiffness, and filmmaker Dan Mace. The entry of these big names in South Africa has propelled the popularity of NFT among the general public, thereby driving the market growth over the last 12 months.
Art galleries in South Africa look to capitalize on the global trend in the NFT market
• In March 2021, Worldart, the South African art gallery, became the first in the country to auction the artwork as NFT.
Firms are raising funding rounds to further accelerate their growth in South Africa
• In November 2021, NFTfi, the firm that allows users to use their NFTs as collateral for loans, announced that it had raised US$5 million to further accelerate its growth in the country.
Auction houses are partnering with wine producers to offer wine NFT in South Africa
• In April 2022, Strauss & Co, the principal South African auction house, announced that it had entered into a strategic collaboration with five of the most respected wine producers in South Africa. Under the strategic partnership, the auction house offered fine wine NFTs.
This title from TechInsight360 is a bundled offering, combining 6 reports, covering regional insights along with data centric analysis at regional and country level:
1 Arica & Middle East NFT Market Insight Brief
2 Arica & Middle East NFT Market Intelligence and Future Growth Dynamics Databook
3 Suth Africa NFT Market Intelligence and Future Growth Dynamics Databook
4 Uited Arab Emirates NFT Market Intelligence and Future Growth Dynamics Databook
5 Sudi Arabia NFT Market Intelligence and Future Growth Dynamics Databook
6 Trkey NFT Market Intelligence and Future Growth Dynamics Databook
This report provides in-depth, data-centric analysis of NFT Market and below is the summary of key market segments:
• NFT Market Size and Forecast by Key Assets, 2019-2028
Collectibles and Art
Fashion & Luxury
• NFT Market Size and Forecast by Key NFT Collectible Assets, 2019-2028
Music & Sound Clip
Memes & Gif
• NFT Market Size and Forecast by Currency, 2019-2028
• NFT Market Size and Forecast by Sales Channels, 2019-2028
• User Statistics, 2019-2028
Reasons to buy
• With the most comprehensive study on this industry, including 4 geographies.
• Based on data and analysis, develop strategies with a global perspective.
• Identify investment opportunities in growth segments.
• Exceed competition by incorporating forecast data as well as market trends.
• Use the relationships between major data sets with valuable insights to improve strategy.
• Appropriate for providing accurate, high-quality data and analysis to support internal and external presentations.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook