Metaverse, crypto, NFTs here to stay, says Chalhoub Group executive

Chalhoub Group last month unveiled its “GCC State of the Metaverse and its Potential for Luxury Retail” report. (Supplied)
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Updated 04 January 2023
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Metaverse, crypto, NFTs here to stay, says Chalhoub Group executive

  • Nick Vinckier, head of corporate innovation, discusses findings of company’s latest report
  • Document sheds light on thoughts of Gulf consumers about Web3

DUBAI: Chalhoub Group last month unveiled “GCC State of the Metaverse and its Potential for Luxury Retail,” a report which revealed the thoughts of Gulf consumers about Web3, which includes the metaverse, cryptocurrencies and NFTs.

The metaverse industry is currently worth $40 to $65 billion and is expected to reach $13 trillion by 2030.

Arab News spoke to Nick Vinckier, head of corporate innovation at Chalhoub Group, to learn more about the report.

There are three key takeaways from the document, according to Vinckier. The first is that although it is “very early days” for Web3, it is not a trend or hype that will fade; it will only grow exponentially.

The report shows high levels of awareness across all facets of Web3, with consumers being most aware of crypto (77 percent), followed by NFTs (49 percent) and the metaverse (46 percent), mainly among younger, high-income males predominantly in the UAE, Saudi Arabia and Oman.  

Secondly, Vinckier said, there is already a lot of value in Web3 with 48 percent saying they have invested in crypto. Moreover, 23 percent said they are engaged with NFTs and active on metaverse platforms, and 71 percent are engaged with branded virtual experiences.

Thirdly, he added, “the customer is already expecting that their favorite brands are present in the metaverse.”




Avatar of Nick Vinckier, head of corporate innovation at Chalhoub Group. (Supplied)

Luxury consumers want to engage in metaverse experiences, with 89 percent saying they would like to preview products in the metaverse and 87 percent saying they expect their favorite brands to be present in the metaverse.

Despite these opportunities, there are barriers, such as users being afraid of crypto volatility (34 percent), lack of trust in NFTs (28 percent), and lack of understanding of the metaverse (42 percent), among others.

Crypto, particularly, has garnered a tarnished reputation following the FTX scandal last year. Founded by Sam Bankman-Fried in 2019, FTX is a cryptocurrency exchange that rose to popularity thanks to celebrity endorsements and an aggressive marketing strategy.

The crypto news site CoinDesk in November published the balance sheet of Alameda Research, a crypto investing firm also owned by Bankman-Fried, showing that Alameda held a large amount of a digital currency created by FTX called FTT.

The article set in motion a series of legal actions against Bankman-Fried, FTX, and the celebrities who promoted the crypto exchange, resulting in a financial scandal.

“It’s true that the FTX collapse and the insolvency issue with other exchanges has given a bad rep to crypto, but people had trust and volatility concerns even before the FTX scandal,” said Vinckier.

As the adoption of cryptocurrencies grows, Vinckier foresees regulators stepping in to work hand in hand with the private sector to create a framework that keeps everyone safe.

This is of crucial importance as buying and selling become more common in the metaverse, where crypto is the predominant currency.  

For example, 93 percent of metaverse users have already made purchases in the last 12 months and 85 percent plan to do so in the next two years.

In-game purchases were the most common (60 percent), followed by 45 percent buying real-world items, and 42 percent buying NFTs.

The numbers shed light on the development of a new trend, the phygital world, which combines digital and physical worlds.

In the Gulf region, interest in phygital goods is particularly high with 83 percent saying they would consider buying an NFT that allows them to redeem it for a physical product, according to the report.

Brands have been quick to take notice, with global companies launching campaigns that allow consumers to redeem NFTs for a physical product.

Prada, for example, launched its first phygital campaign, Prada Timecapsule, back in 2019. Every month, the Timecapsule collection launches a new item, which is available exclusively online for 24 hours only. Each drop is linked to both a limited-edition physical product and a gifted NFT.

Rimowa, in partnership with digital studio RTFKT, last year sold 888 NFTs worth $3,000 each, which were redeemable against a one-of-a-kind luggage case.

The trend marks a new frontier for Web3 both globally and in the region, and one that will be crucial to Chalhoub Group’s future strategy.

The past year has been one of experimentation for the company. It has launched several big and small projects including, most notably, the “925 Genesis Mood” collection for Christofle, which saw all NFTs being sold out within five minutes of launch.

Based on its acquired knowledge, the company will now focus on fewer, but bigger projects with more investment behind them.

“As with anything in my division of corporate innovation, we start with exploration,” said Vinckier.

“We will start to exploit, grow and make them (projects) more sustainable, more structural, and have them impact our business more.”

Although he did not share specifics, Vinckier indicated that the company plans to focus more on phygital and omnichannel projects, because “we do not believe in a virtual-only future.”

The company still believes that physical, in-store experiences have true value, and, he added, “we will always be the first ones to keep that very close to our heart.”

Chalhoub Group will continue to invest, experiment and foray further into the world of Web3, but the split between its physical and digital efforts will never be 50-50, said Vinckier, but 60-40, at most.

He added: “We don’t sell luxury. Luxury is the experience in the (purchase) journey and that will be the same for Web3.”


BBC shelves Gaza documentary over impartiality concerns, sparking online outrage

Updated 22 June 2025
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BBC shelves Gaza documentary over impartiality concerns, sparking online outrage

  • The film, titled “Gaza: Doctors Under Attack” had been under editorial consideration by the broadcaster for several months.

LONDON: The BBC has decided not to air a highly anticipated documentary about medics in Gaza, citing concerns over maintaining its standards of impartiality amid the ongoing Israel-Gaza conflict.

The film, titled “Gaza: Doctors Under Attack” (also known as “Gaza: Medics Under Fire”), was produced by independent company Basement Films and had been under editorial consideration by the broadcaster for several months.

In a statement issued on June 20, the BBC said it had concluded that broadcasting the documentary “risked creating a perception of partiality that would not meet the BBC’s editorial standards.” The rights have since been returned to the filmmakers, allowing them to seek distribution elsewhere.

The decision comes in the wake of growing scrutiny over how the BBC is covering the Israel-Gaza war. Earlier this year, the broadcaster faced backlash after airing “Gaza: How to Survive a War Zone,” a short film narrated by a 13-year-old boy later revealed to be the son of a Hamas official. The segment triggered nearly 500 complaints, prompting an internal review and raising questions about vetting, translation accuracy, and the use of sources in conflict zones.

BBC insiders report that portions of “Gaza: Doctors Under Attack” had been considered for integration into existing news programming. However, concerns reportedly emerged during internal reviews that even limited broadcast could undermine the BBC’s reputation for neutrality, particularly given the politically charged context of the ongoing war.

Filmmaker Ben de Pear and journalist Ramita Navai, who worked on the documentary, have expressed disappointment at the decision. They argue that the film provided a necessary and unfiltered look at the conditions medical workers face in Gaza. “This is a documentary about doctors — about the reality of trying to save lives under bombardment,” said Navai. “To shelve this is to silence those voices.”

Critics of the BBC’s decision have been vocal on social media and online forums, accusing the broadcaster of yielding to political pressure and censoring Palestinian perspectives. One commenter wrote, “Sorry, supporters of the Israeli government would get very offended if we demonstrated the consequences … so we shelved it.” Others, however, defended the move, citing the importance of neutrality in public service broadcasting.

A BBC spokesperson said the decision was made independently of political influence and reflected long-standing editorial guidelines. “We are committed to reporting the Israel-Gaza conflict with accuracy and fairness. In this case, we concluded the content, in its current form, could compromise audience trust.”

With the rights now returned, Basement Films is expected to seek other avenues for release. Whether the documentary will reach the public via another broadcaster or platform remains to be seen.


Iran’s Internet blackout leaves public in dark, creates uneven picture of war with Israel

Updated 20 June 2025
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Iran’s Internet blackout leaves public in dark, creates uneven picture of war with Israel

  • Civilians are left unaware of when and where Israel will strike next, despite Israeli forces issuing warnings
  • Activists see it as a form of psychological warfare

DUBAI: As the war between Israel and Iran hits the one-week mark, Iranians have spent nearly half of the conflict in a near-communication blackout, unable to connect not only with the outside world but also with their neighbors and loved ones across the country.
Civilians are left unaware of when and where Israel will strike next, despite Israeli forces issuing warnings through their Persian-language online channels. When the missiles land, disconnected phone and web services mean not knowing for hours or days if their family or friends are among the victims. That’s left many scrambling on various social media apps to see what’s happening — again, only a glimpse of life able to reach the Internet in a nation of over 80 million people.
Activists see it as a form of psychological warfare for a nation all-too familiar with state information controls and targeted Internet shutdowns during protests and unrest.
“The Iranian regime controls the information sphere really, really tightly,” Marwa Fatafta, the Berlin-based policy and advocacy director for digital rights group Access Now, said in an interview with The Associated Press. “We know why the Iranian regime shuts down. It wants to control information. So their goal is quite clear.”
War with Israel tightens information space
But this time, it’s happening during a deadly conflict that erupted on June 13 with Israeli airstrikes targeting nuclear and military sites, top generals and nuclear scientists. At least 657 people, including 263 civilians, have been killed in Iran and more than 2,000 wounded, according to a Washington-based group called Human Rights Activists.
Iran has retaliated by firing 450 missiles and 1,000 drones at Israel, according to Israeli military estimates. Most have been shot down by Israel’s multitiered air defenses, but at least 24 people in Israel have been killed and hundreds others wounded. Guidance from Israeli authorities, as well as round-the-clock news broadcasts, flows freely and consistently to Israeli citizens, creating in the last seven days an uneven picture of the death and destruction brought by the war.
The Iranian government contended Friday that it was Israel who was “waging a war on truth and human conscience.” In a post on X, a social media platform blocked for many of its citizens, Iran’s Foreign Ministry asserted Israel banned foreign media from covering missile strikes.
The statement added that Iran would organize “global press tours to expose Israel’s war crimes” in the country. Iran is one of the world’s top jailer of journalists, according to the Committee to Protect Journalists, and in the best of times, reporters face strict restrictions.
Internet-access advocacy group NetBlocks.org reported on Friday that Iran had been disconnected from the global Internet for 36 hours, with its live metrics showing that national connectivity remained at only a few percentage points of normal levels. The group said a handful of users have been able to maintain connectivity through virtual private networks.
Few avenues exist to get information
Those lucky few have become lifelines for Iranians left in the dark. In recent days, those who have gained access to mobile Internet for a limited time describe using that fleeting opportunity to make calls on behalf of others, checking in on elderly parents and grandparents, and locating those who have fled Tehran.
The only access to information Iranians do have is limited to websites in the Islamic Republic. Meanwhile, Iran’s state-run television and radio stations offer irregular updates on what’s happening inside the country, instead focusing their time on the damage wrought by their strikes on Israel.
The lack of information going in or out of Iran is stunning, considering that the advancement of technology in recent decades has only brought far-flung conflicts in Ukraine, the Gaza Strip and elsewhere directly to a person’s phone anywhere in the world.
That direct line has been seen by experts as a powerful tool to shift public opinion about any ongoing conflict and potentially force the international community to take a side. It has also turned into real action from world leaders under public and online pressure to act or use their power to bring an end to the fighting.
But Mehdi Yahyanejad, a key figure in promoting Internet freedom in Iran, said that the Islamic Republic is seeking to “purport an image” of strength, one that depicts only the narrative that Israel is being destroyed by sophisticated Iranian weapons that include ballistic missiles with multiple warheads.
“I think most likely they’re just afraid of the Internet getting used to cause mass unrest in the next phase of whatever is happening,” Yahayanejad said. “I mean, some of it could be, of course, planned by the Israelis through their agents on the ground, and some of this could be just a spontaneous unrest by the population once they figure out that the Iranian government is badly weakened.


BBC threatens legal action against AI startup Perplexity over content scraping

Updated 20 June 2025
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BBC threatens legal action against AI startup Perplexity over content scraping

  • Perplexity has faced accusations from media organizations, including Forbes and Wired, for plagiarizing their content

LONDON: The BBC has threatened legal action against Perplexity, accusing the AI startup of training its “default AI model” using BBC content, the Financial Times reported on Friday, making the British broadcaster the latest news organisation to accuse the AI firm of content scraping.

The BBC may seek an injunction unless Perplexity stops scraping its content, deletes existing copies used to train its AI systems, and submits “a proposal for financial compensation” for the alleged misuse of its intellectual property, FT said, citing a letter sent to Perplexity CEO Aravind Srinivas.

The broadcaster confirmed the FT report on Friday.

Perplexity has faced accusations from media organizations, including Forbes and Wired, for plagiarizing their content but has since launched a revenue-sharing program to address publisher concerns.

Last October, the New York Times sent it a “cease and desist” notice, demanding the firm stop using the newspaper’s content for generative AI purposes.

Since the introduction of ChatGPT, publishers have raised alarms about chatbots that comb the internet to find information and create paragraph summaries for users.

The BBC said that parts of its content had been reproduced verbatim by Perplexity and that links to the BBC website have appeared in search results, according to the FT report.

Perplexity called the BBC’s claims “manipulative and opportunistic” in a statement to Reuters, adding that the broadcaster had “a fundamental misunderstanding of technology, the internet and intellectual property law.”

Perplexity provides information by searching the internet, similar to ChatGPT and Google’s Gemini, and is backed by Amazon.com (AMZN.O) founder Jeff Bezos, AI giant Nvidia (NVDA.O), and Japan’s SoftBank Group (9984.T).

The startup is in advanced talks to raise $500 million in a funding round that would value it at $14 billion, the Wall Street Journal reported last month.


Streaming platform Deezer starts flagging AI-generated music

Updated 20 June 2025
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Streaming platform Deezer starts flagging AI-generated music

  • French streaming service Deezer is now alerting users when they come across music identified as completely generated by artificial intelligence, the company told AFP on Friday

PARIS: French streaming service Deezer is now alerting users when they come across music identified as completely generated by artificial intelligence, the company told AFP on Friday in what it called a global first.
The announcement by chief executive Alexis Lanternier follows repeated statements from the platform that a torrent of AI-generated tracks is being uploaded daily — a challenge Deezer shares with other streaming services including Swedish heavyweight Spotify.
Deezer said in January that it was receiving uploads of 10,000 AI tracks a day, doubling to over 20,000 in an April statement — or around 18 percent of all music added to the platform.
The company “wants to make sure that royalties supposed to go to artists aren’t being taken away” by tracks generated from a brief text prompt typed into a music generator like Suno or Udio, Lanternier said.
AI tracks are not being removed from Deezer’s library, but instead are demonetised to avoid unfairly reducing human musicians’ royalties.
Albums containing tracks suspected of being created in this way are now flagged with a notice reading “content generated by AI,” a move Deezer says is a global first for a streaming service.
Lanternier said Deezer’s home-grown detection tool was able to spot markers of AI provenance with 98 percent accuracy.
“An audio signal is an extremely complex bundle of information. When AI algorithms generate a new song, there are little sounds that only they make which give them away... that we’re able to spot,” he said.
“It’s not audible to the human ear, but it’s visible in the audio signal.”
With 9.7 million subscribers worldwide, most of them in France, Deezer is a relative minnow compared to Spotify, which has 268 million.
The Swedish firm in January signed a deal supposed to better remunerate artists and other rights holders with the world’s biggest label, Universal Music Group.
But Spotify has not taken the same path as Deezer of demonetising AI content.
It has pointed to the lack of a clear definition for completely AI-generated audio, as well as any legal framework setting it apart from human-created works.


Israeli police prevent media from reporting at scene of Soroka hospital strike

Updated 19 June 2025
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Israeli police prevent media from reporting at scene of Soroka hospital strike

  • Officers block journalists from filming at medical center hit by Iranian missile on Thursday, and demand they hand over equipment
  • The move is said to the result of directives issued by Israel’s minister of national security, Itamar Ben-Gvir
  • Amid growing concerns about restrictions on reporting, advocates for freedom of the press accuse Israeli authorities of censorship

LONDON: Israeli police reportedly prevented journalists from filming at Soroka Medical Center in Beersheba, which suffered “extensive damage” from an Iranian missile strike on Thursday.

Officers were said to have cited security concerns as the reason, on the grounds that footage from the scene revealed “precise locations” and had been broadcast by Al Jazeera, a media outlet banned in Israel since May 2024 over its coverage of the war in Gaza.

The Times of Israel said police confronted one cameraman at the hospital site and demanded he hand over his equipment. The journalist reportedly refused and told officers: “They are seeing you on CNN, seeing you on BBC, seeing you all over the world, so calm down for a second.”

Iran’s Islamic Revolutionary Guard Corps claimed responsibility for the attack in which the hospital was damaged, saying it had targeted nearby Israeli military and intelligence sites. The Israeli military denied having any facilities in the area. Footage authenticated by BBC Verify suggested the medical complex was hit by a direct strike.

Israeli police confirmed on Thursday that they ordered a halt to foreign media coverage at Soroka and other affected locations for reasons of national security. They added that they were actively looking for media workers filming at the sites.

“Israel Police units were dispatched to halt the broadcasts, including those of news agencies through which Al Jazeera was airing illegal transmissions,” the force said.

During a visit to the hospital site on Thursday, Israel’s minister of national security, Itamar Ben-Gvir, said: “This morning in Tel Aviv, there was an incident where equipment was confiscated. There is a clear policy: Al Jazeera endangers state security.”

The crackdown on the media comes amid growing concerns among advocates for freedom of the press. Several journalists and other industry professionals have reported obstruction by authorities, including confiscation of equipment. Many accuse Israeli officials of censorship. It follows policy directives from far-right minister Ben-Gvir, in coordination with Communications Minister Shlomo Karhi, to “maintain the safety and security of citizens.”

Sources close to Ben-Gvir said he has instructed Israel’s Shin Bet security agency and the police to step up action against any foreign media outlets or civilians suspected of celebrating the Iranian missile attacks.

“There will be zero tolerance for expressions of joy over attacks on Israel,” Ben-Gvir said this week.

Tensions in the region have risen sharply since coordinated strikes by Israeli authorities against Iranian military and nuclear sites began on June 13. Tehran has retaliated with missile strikes on Israeli targets, some of which have hit civilian buildings.

After a visit to the Soroka hospital site on Thursday, Israeli Defense Minister Israel Katz escalated the rhetoric further, declaring that Iran’s Supreme Leader Ayatollah Ali Khamenei “can no longer be allowed to exist.”

Iranian authorities say at least 639 people have been killed and 1,329 wounded since the fighting began a week ago. The death toll in Israel stands at 24, according to officials in the country.