Developing regional economies is a crucial strategic move with far-reaching economic implications.
Unlocking the potential of regional growth demands a multifaceted approach encompassing strategic vision, robust governance, human capital development, infrastructure enhancement, and investment attraction.
Interestingly, the COVID-19 experience permanently changed the global outlook towards technological potential. It was well proven that in times such as the infamous viral pandemic, technology, ICT in particular, provided important solutions that had never been implemented. For example, conducting business meetings remotely in the wake of movement restrictions, contactless transactions to keep businesses running, telemedicine, disaster management and the proliferation of e-commerce.
As such, with these experiences, the inclination towards the possibility of transitioning into a virtualized environment for economic growth is increasingly being considered within the realm of reality. The rise of the digital marketplace, encompassing the metaverse and the concept of an AI-enabled Economy of Things are being seen as the pillars of the digital economy. Moreover, addressing the two-pronged dilemma of balancing economic growth and sustainability hinges on technological solutions that promise to turbocharge operational efficiency and lower energy consumption.
The Advent of 5G-Advanced, Artificial Intelligence and Smart Cities
It is safe to say that this push toward digitalization has been accelerated by the evolution of 5G to 5G-Advanced connectivity, which is expected to catalyze innovative digital solutions across sectors, transforming traditional modes of communication and connectivity. The ultra-low latency, high bandwidth capacity of this technology accelerates the integration of emerging technologies such as artificial intelligence and cloud computing and improves network flexibility, enabling more complex and varied use cases, ranging from smart cities to advanced industrial applications.
Interestingly, Huawei proposes distinct capabilities for 5.5G, including 10 Gbps downlink and 1 Gbps uplink support for 100 billion connections and native intelligence. Moreover, it is urging industry players to standardize frameworks in accordance with 3GPP, ETSI and ITU regulations. Huawei believes that incubation projects piloting new use cases will lead to the advancement of a prosperous industry ecosystem that will speed up digital and intelligent transformation.
Similarly, world-leading equipment manufacturers, Ericsson and Nokia, are setting up 5G networks along with network providers in new markets in the MENA region and globally.
Furthermore, initiatives such as the Middle East’s glasses-free 3D initiative announced by Zain Group, Omantel and others, seeks to standardize glasses-free 3D technologies, build ecosystem capabilities and incubate innovative applications using 5G and 5G-A, artificial intelligence (AI), and computing network capabilities. The ultimate goal is to create a next-gen experience for users and new value for the industry at large. The high speed and low latency of 5G and 5G-A networks, the powerful processing capability of the computing network and the power of AI capabilities will further bolster the real immersion and interaction convenience of glasses-free 3D, bringing users a new visual experience.
Similarly, the concept of smart cities has evolved as a result of countries’ need to keep pace with global advancements. The smart city model incorporates the use of digital technology to provide solutions to monitor, manage and enhance key infrastructure and public services to improve the experience of its citizens. With this potential explosion of the population in cities, governments are under pressure to look for ways they can reduce energy usage, lower carbon emissions and save costs.
As such, there is an urgent need to integrate the technological potential of the virtual world into key tangible industries, such as urban planning, tourism and education, and others, to improve decision-making and enrich urban living for all. Understanding the interplay between technology, societal trends, and economic factors becomes extremely important in benefiting from these technological advancements.
Read More: The Connected Road Ahead: Navigating Intelligent Environments and Smart Cities
Seeking Solutions
The Global Initiative on Virtual Worlds, Discovering the CitiVerse, was launched by the International Telecommunication Union (ITU), the United Nations International Computing Centre (UNICC) and Digital Dubai on 14 June 2024 during the first UN Virtual Worlds Day.
The CitiVerse Initiative serves as a global platform that aims to foster open, interoperable and innovative virtual worlds that can be used safely, and with confidence, by people, businesses and public services.
The initiative will develop guiding frameworks addressing principles, enablers and governance for applying metaverse solutions in cities. It will provide training and host events to disseminate knowledge, raise awareness and share best practices and solutions among cities worldwide.
In addition, it will deliver a sandbox environment for testing and experimenting metaverse scenarios in cities around the world.
Telecom Review Analysis: Metaverse: A Social Paradigm Shift Driven by Connectivity and Communication
How will the CitiVerse Empower Citizens?
As per the UN Economic and Social Affairs Department, 70% of the global population is expected to live in cities by 2050. Cities will account for 70 percent of GHG emissions and will contribute more than 80% of the global GDP. Notably, the agency reports that 99% of the global urban population breathe polluted air.
Considering the state of affairs in our cities today, the CitiVerse Initiative is seen as the integration of cities with metaverse solutions, enabling technology to redefine the way that we live in cities, create economic opportunities and solve economic challenges.
For instance, the Dubai Metaverse Strategy, launched in 2023, aims to place Dubai in the top position in the region and the top 10 globally in terms of a metaverse economy. The main objectives of the strategy include: a five times increase in the number of blockchain and metaverse companies in 5 years, 40K metaverse-supported virtual jobs added by 2030 and USD 4 billion added to the economy in Dubai in a five-year timeframe.
These objectives will be achieved by leveraging technologies such as Web 3.0, AR/VR and XR as well as digital twin technologies. The five pillars of the CitiVerse initiative encompass fostering innovation, cultivating talent, developing use cases, adopting and scaling safe platforms and redefining regulations and infrastructure.
Also Read: Enterprise Metaverse: An Industry in the Making
Investment in Computing Power, Sustainability and Regulations
To ensure the successful widespread implementation and adoption of these new solutions, investments in data management and digital infrastructure will be vital. Major global companies are investing in their cloud and data storage capacities to meet the growing demands of their customers. Standard data centers are not designed to process the volume of data exchange that is expected to take place as a result of the hyper-interconnected environment.
Global data center investments are expected to increase from USD 321 billion in 2022 to USD 410 billion in 2025 to support the growth of generative AI (GenAI), mobile connectivity, smart grids, and other forms of tech-based infrastructure. Moreover, major technology companies are trying to balance the growing carbon footprint of AI deployments.
In recent news, Google reported an increase in its greenhouse gas (GHG) emissions for 2023, attributing this rise to powering data centers that support AI operations. Similarly, Microsoft's latest sustainability report showed a 29% increase in GHG emissions last year compared to 2020. Companies like Microsoft, Amazon, Airbus, and even Lego are willing to pay upwards of USD 1,000 per tonne of CO2 captured—stored in the form of carbon credits—to offset their emissions.
Currently, energy storage solutions are not yet capable of responding to contemporary demand cycles, and innovative business solutions and technology models. Traditional power grids suffer from significant energy losses during transmission and distribution, affecting overall efficiency and increasing operational costs. As such, OEMs like Huawei are also supporting the energy management domain with innovative solutions.
For example, Huawei’s Intelligent Distribution Solution (IDS) offers several advantages, including meeting growing energy demands, renewable energy integration and building a sustainable future. It also helps utility providers meet these demands efficiently and sustainably, balancing supply and demand, managing fluctuations, and optimizing energy storage solutions. Initial tests across multiple countries in the Middle East, Asia, and Africa have already shown promising results.
Furthermore, numerous challenges need to be overcome to capture the metaverse opportunity in our cities. The ITU has established a metaverse-centric focus group and is continuously collaborating with industry players to develop the interoperability, standards and guidelines, data privacy, infrastructure, legal regulations, security and safety, economic value and competition that is crucial to facilitate the integration of a secure and reliable digitalized economy into the fabric of the cities of the future.
Also Read: The Metaverse and Data Protection: How Companies Can Proceed Smartly
