H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, recently launched Dubai’s Metaverse Strategy. The move underscores the city’s position as a global technology pioneer that offers an advanced and connected ecosystem which enables the Metaverse community to thrive in an enabling and dynamic environment.
The launch of Dubai’s Metaverse Strategy enhances its’s status as a global hub for advanced technologies, mainly focused on AI and Web3.
Currently, the emirate serves as a base for more than a thousand companies focused on the Metaverse and blockchain sector. The sector’s current contribution of USD500 million to the country’s economy is set to increase significantly as Dubai attracts new players in the industry. One of the aims of the recently launched Dubai Metaverse Strategy is to create more than 40,000 virtual jobs by 2030 and contribute USD4 billion to the country’s economy in a five-year period.
The emirate is making rapid advancements with the new Metaverse strategy, and has announced the creation of a Higher Committee for Future Technology and Digital economy, which will be chaired by Sheikh Hamdan. The main objective of the committee will be to strengthen the emirate’s status as a global technology and digital economy hub.
The committee has been tasked with the design of policies, analysis of trends and supervision of strategies related to future technologies and the digital economy. These include AI, the metaverse, Web3, blockchain, Vr and AR, IoT, cloud computing and data centers.
A test-adapt-scale model devised by the country’s Virtual Assets Regulatory Authority (VARA) has emerged as a compelling driver for global technology companies to establish their presence in the city. The emirate aims to become one of the world’s top Metaverse economies and intends to increase the number of blockchain companies in the city by five-fold.
Some of the world’s largest and most credible virtual asset exchanges like Binance, FTX, Coinbase and Bybit have all indicated their intention to move to Dubai. In addition to these companies, locally established enterprises lihe CoinMENA and BitOasis are have also established their presence.
Dubai as a leader in Metaverse technology
The emirate is the worlds first country to establish a dedicated virtual assets regulator. Earlier this year, HH Sheikh Mohammed bin Rashid Al Maktoum approved Dubai’s Virtual Assests Law (VAL) and established VARA, which has cemented the city’s leadership in the sector. The law enables investor protection, market transparency and economic security, supported by transaction records that are fully traceable and non-deletable.
Helal Al Marri, Director-General of the Dubai World Trade Centre Authority, where VARA is located, said that virtual assets that are transforming the financial sector are poised to be the drivers of the future global economy. He added that CARA had been structured to enhance collaboration and make public protection a priority.
Since its inception, VARA has been engaged with establishing an enabling ecosystem and identifying a list of global participants. It has forged partnerships with some of the world’s most established players including Chainalysis, Elleptic, Coinfirm and Anchain.
With the formation of VAl and VARA, Dubai is a leading player of the virtual assets industry, and plays a key role in the growth, evolution and regulatory future of the industry. Several Web3 leaders and start-ups have moved to Dubai, in turn attracting the best global talent in the sector.
The Emirate, Dubai’s virtual assets ecosystem, is home to three distinct zones dedicated to Web3 and the crypto ecosystem. These are the Dubai World Trade Centre (DWTC), Dubai International Finance Centre (DIFC), and the Dubai Multi Commodoties Centre (DMCC).
Executive Chairman and CEO of DMCC, Ahmed bin Sulayem, said that digital assets play a vital role in DMCC’s mandate to drive trade through Dubai. DMCC is now home to over 400 crypto firms in the UAE, and offers a comprehensive ecosystem which facilitates the development of crypto and blockchain technologies.
Established in 2015 as a relatively new free zone, DWTC’s regulatory and operating environment is slated to enhance the growth of the virtual assets ecosystem in Dubai. VARA is linked to the DWTC Authority, and is reponsible for licensing and regulating the virtual assets sector in the emirate.
The regulatory arm of the DIFC free zone, supervises the regulation of investment tokens, but is not involved in the regulation of any other crypto assets.
Hub for high-potential, future-focused firms
Dubai’s location as an innovation hub allows it to offer unparalleled access to the world’s fastest growing economies, and serves as a bridge between the East and West. As a traditional global financial hub, the emirate is acts as a safe and well-regulated conduit for transactions worth trillions of dollars between the East and the West.
The city has also hosted major industry events such as ETHDubai and Binance Blockchain Week, which witnessed the participation of hundreds of experts and entrepreneurs from around the world.
The Dubai Metaverse Assembly is scheduled to be held at the Museum of the Future later this year, and will attract regional and international experts to the city. Over 300 participants, spanning policymakers, thought leaders, global experts and decision-makers from more than 40 different organisations will explore how Metaverse technologies can be deployed to create a better future and quality of life for humanity as a whole.
Dubai now serves as a base for a massive community of finance start-ups, and has now set its sights on conquering the economic frontier. Large investments in infrastructure and continued technology advancements will ensure that Dubai cements its place as the Web3 capital of the world.