Extended Reality (XR), comprising Augmented Reality (AR), Virtual Reality (VR), and Mixed Reality (MR), is revolutionizing various industries, by offering new immersive, efficient, and innovative solutions. XR has become a crucial instrument that is not only reshaping the evolution of cities but also the process of the industrial world, resulting in the use of XR going beyond architectural designing and workforce training.
According to the industry projections by Coherent Market Insights, the global extended reality market is expected to reach USD 366.98 billion by 2032, exhibiting a CAGR of 23% during 2025-2032. Gulf Cooperation Council (GCC), directed by Saudi Arabia and the UAE, is commanding this transformation through an ambitious project, named Vision 2030, which aims to diversify economies and promote technological innovation.
Vision 2030 - the GCC’s Commitment to Innovation
Saudi Arabia, along with the UAE, has made a strategic move to be at the forefront in adopting revolutionary technologies to build smart cities and modernize industries. Through Vision 2030, a considerable amount of funds has been allocated to integrate XR technologies into key sectors that are essential for the growth of the local economies, such as construction, oil & gas, and infrastructure.
Notable projects like Saudi Arabia’s NEOM city or the UAE’s Masdar City, enabled by Vision 2030, exhibit the XR approach being used to develop future urban spaces. The project's focus is on creating a greener environment, but also a more technologically advanced and efficient one, thus making the GCC region a global hub for innovation.
Integration of Extended Reality into Smart Cities
The use of extended reality (XR) technologies in urban development is revolutionizing the way cities operate, offering innovative solutions to improve sustainability, connectivity, and efficiency. With the help of XR, which serves as a link between the real and virtual worlds, cities can access new possibilities for infrastructure management, transportation systems, and community experiences.
In February 2022, Saudi Arabia's futuristic city, Neom, announced that its key subsidiary, Neom Tech & Digital Company, launched XVRS. XVRS is a 3D cognitive digital twin metaverse platform envisioned to enable a ground-breaking ‘mixed reality’ urban living model. The project has the potential to fuel diversification and unlock significant economic opportunity for Neom, its global partners, and cities across the world. It aims to offer users ‘multiple points of view’ and the ability to feature in a variety of locations across the metaverse in real time as an avatar, hologram, or robotic avatar.
(Source: U.S.-Saudi Arabian Business Council)
XR Applications Supporting Remote Asset Inspection in Oil & Gas
The oil & gas industry, which is a major contributor to the GCC economy, is confronted with challenges like high costs, safety issues, and difficulties in accessing areas for asset inspections. XR technologies deliver innovative solutions to cater to these problems by facilitating remote asset inspection, thus making the operations safer and more efficient. The UAE has adopted XR technologies in offshore drilling to allow remote inspections.
For example, the world’s largest oil producer, Aramco, is making use of wearable technology, self-learning machines, and virtual reality programs that simulate real-life experiences on an oil rig. The company uses XR to facilitate "see-what-I-see" remote assistance, thus eliminating the need for experts to travel to distant or hazardous sites, reducing risks.
(Source: Aramco)
Role of Extended Reality (XR) in Workforce Training and Safety
Workforce training and safety are critical aspects of industrial operations, and XR is playing a pivotal role in enhancing both. VR simulations provide immersive training experiences for high-risk tasks, allowing employees to practice in a controlled environment. AR-based real-time hazard alerts further enhance worker safety by providing immediate warnings and guidance during operations.
For instance, ADNOC adopted new technologies like Virtual Reality (VR) technology to help trainees enhance their skills and meet global standards. With the help of VR technology, the trainees can encounter potential hazards and risks in a virtual setting, which helps them learn how to avoid and handle such situations on the actual sites.
(Source: ADNOC Technical Academy)
Partnerships Driving XR Adoption in GCC
The GCC governments have forged strategic partnerships with leading XR tech companies to drive innovation and adoption. These collaborations include investments in XR-focused research and development centers, fostering a culture of technological advancement.
One notable example is Saudi Arabia's collaboration with Magic Leap, a top XR company, to create innovative solutions for smart cities and industries. Such collaborations play a key role in overcoming technological and implementation challenges. Simultaneously, they help elevate the region's competitiveness on a global scale.
GCC’s Extended Reality Market Potential
The GCC Extended Reality market is poised for exponential growth driven by Vision 2030 initiatives and evolving technologies. Market projections indicate that XR adoption in the region will grow rapidly in the coming future, with AI integration further improving XR capabilities. Government policies and investments will also play a crucial role in sustaining this growth, ensuring that the GCC remains at the forefront of global technological innovation.
Contact Us