If there’s something more popular than Bitcoin on the Internet, it has to be the new and uprising NFTs. Short for non-fungible tokens, the NFTs craze has taken over the digital world by storm, and the Middle East market is not excluded. 

In their essence, NFTs are digital art. They work more or less the same way as crypto, i.e., they use a blockchain network. The only difference is that all cryptocurrencies are fungible, meaning they can be replaced by another identical item, while NFTs are unique, thus, can’t be replaced. Each NFT represents an individual work, where the artist’s signature is the main selling point.

Today, we’re going to focus on the Middle East art market that has experienced a boom in recent years in the realm of NFTs. See how NFTs impacted the Middle East art market, its rights, regulations, and more.

The Middle East Art Scene

The Middle East is not a stranger to the art scene. In 2018 alone, the Middle East contributed $92.7 billion to the overall art market. This is expected to grow even more and reach $111 million by 2023. So it comes as no wonder that the NFTs trend made its way here

One of the most notable countries where NFTs have a significant impact is the United Arab Emirates. Namely, the NFT industry here is expected to grow 45.5% and reach $982.1 million by the end of 2022. What’s more, the arrival of globally-known galleries such as Perrotin Art Gallery has made Dubai an international hub for the digital art world. 

Known for its advanced tech environment, Dubai is the “gold mine” for NFTs and blockchain industries. Artists like Kristel Bechara were quick to get on board for this development. 

Namely, she is the first Arab female artist to launch an NFTs art series in the United Arab Emirates and the Middle East. Her art, impressively, has been sold in less than 24 hours for 1.10 Ethereums or $2,528 in cash currency. Kristel is also the first artist in the Middle East to sell double-digit art pieces (12) for a total price of 14.5 Ethereum, or $33,887 in value. 

Soon, others followed, opening the doors for the digital art scene of the Middle East to grow. In June 2022, the Saudi Arabian artist Abdullah Qandell launched the first Artist-Approved NFT.

The New Economic Treasure of the Middle East

Not long after NFTs appeared in the Middle East, they were dubbed the region’s “new economic treasure”. The reason behind this simple yet monumental moniker is that aside from letting artists make money and protect their work, NFTs are thought to encourage the evolution of local communities toward less restrained trading.

According to Samer Al Sayari from the Beirut Arab university in Lebanon, NFTs will help artists to protect their rights and give them financial appreciation for their hard work.

NFTs & Royalty Fees

Although NFTs in the Middle East art market (as well as the rest of the world) are revolutionary, there have been some controversies that have sparked several debates. Namely, some NFTs markets have announced that buyers no longer have to pay royalty fees. 

To understand this better, royalty fees or payments are amounts that the artists get when their work is resold on the digital market. 

Some platforms, like OpenSea, allow royalty payments that range between 5% to 10%. But the problem occurred when others, like X2Y2, announced that these fees on their platform would be optional.

The Metaverse is Not Excluded

Ever since Facebook announced the arrival of the Metaverse in the future, people have been rushing to create and sell NFTs of their own art. The reason was the simple realization that the opportunity of this digital asset is within the Metaverse. 

According to Nikki Meftah, the co-founder of the Middle East’s first digital gallery exhibition with NFTs called Embergeast, everyone will have their own avatars in the Metaverse, and their NFTs shall be connected to them in the digital world. 

NFTs in the Middle East Art Market

The world of NFT is on the brink of development. More and more artists are shifting their interests and pieces to the digital world, seeing a bigger chance for progress. 

Clear proof of the rise of NFTs in the Middle East is a large number of digital art conventions and the rise of more and more artists willing to experience the advantages of this digital asset. Even though many critics point to NFTs as a bubble that will eventually burst, they seem to agree that currently, it does hold great potential.