The Dubai Metaverse Strategy, which was announced by the Dubai Ruler Sheikh Mohammed bin Rashid Al Maktoum earlier this month, aims to increase the contribution of the metaverse sector to the emirate’s economy to $4 billion by 2030.
Headed by the Dubai Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the Dubai Metaverse Strategy also intends to ensure that the metaverse increases its contribution to 1 percent of the emirate’s GDP.
The metaverse is a three-dimensional, hyper-realistic, virtual-reality space where users interact with other users in computer-generated environments such as shops, learning environments, and meeting rooms, among others. It combines elements of social media, augmented reality, virtual reality, video games, and other advanced technologies.
Dubai Crown Prince Sheikh Hamdan bin Mohammed and Sheikh Maktoum bin Mohammed, the Deputy Ruler of Dubai, have now directed the formation of a task force to track the latest developments in the digital economy, including technology and metaverse trends, the state-run news agency, Wam, confirmed.
Sheikh Hamdan said: “The directives of Sheikh Mohammed bin Rashid to form a higher committee to supervise Dubai’s future technological developments reflect the importance of facing the future with an open mind.
“The move will help us fully understand reality and explore unique ideas that will shape a brighter future for Dubai and the UAE, maximising future business opportunities.”
Higher committee to develop Dubai’s metaverse strategy
Sheikh Hamdan confirmed that the higher committee has started work on key pillars and the objectives of the Dubai Metaverse Strategy.
During the meeting with Sheikh Hamdan and Sheikh Maktoum, Omar bin Sultan Al Olama, who is the UAE Minister of State for Artificial Intelligence, Digital Economy, and Teleworking Applications and chairman of the Dubai Chamber of Digital Economy, outlined how Dubai stands to benefit from the metaverse in a way that enables it to generate business opportunities beyond its physical borders.
The committee aims to implement metaverse technologies that can help improve the performance of resident surgeons by 230 percent and increase the productivity of engineers by 30 percent, in addition to supporting 42,000 jobs to become virtual.
Dubai plans to become a key player in the virtual world and is developing a regulatory and legislative framework for the sector.
It is also launching projects and initiatives that will further raise its stature in the virtual world.
The committee is currently working on identifying opportunities and challenges and continuing the development of the legislative framework that covers future requirements of all sectors.
In addition, the committee is working on qualifying human capital to be able to excel in the virtual world.
Current estimates expect business revenues from the metaverse could grow from $180 billion to $400 billion by 2025.
Article updated with the latest information on 18-07-2022:
Dubai has launched a metaverse strategy on 18th July
Dubai has launched a metaverse strategy on Monday, where it aims to raise the sector’s contribution to the local economy to $4 billion.
The emirate’s Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum announced the new initiative on Twitter, explaining how it aims to double the number of metaverse-related companies in the emirate in the next five years.
“Today, we launched the Dubai Metaverse Strategy, the next revolution in the technological and economic field. We have 1,000 companies in Dubai currently working in this sector, which contributes $500 million to our national economy. We expect it to rise strongly during the coming period,” he said.
Around 40,000 jobs will be introduced as part of the strategy, the crown prince said.
The Dubai Metaverse Strategy is based on five pillars, which includes government adoption of metaverse technologies, talent development, and a focus on innovation.
To help you understand the business and economic opportunity it provides, here are the latest metaverse developments in region:
- Meta’s regional head weighs in on how the metaverse will create jobs and economic opportunities in the MENA region
- Sheikh Mohammed launches higher committee to develop Dubai Metaverse Strategy in two months
- Why the MENA region has ‘amazing potential’ for metaverse businesses
- Dubai’s Virtual Assets Regulatory Authority to establish metaverse HQ in world first
- Metaverse mansions become a reality as Dubai real estate broker offers ultra-luxury virtual properties as NFTs
- Damac Group steps into the metaverse with $100 million investment in “digital cities”
- Dubai-based BEDU, which is a pioneer in Web3 and metaverse technologies and solutions, has launched in the UAE – and is looking to create an NFT factory and a proprietary metaverse
- Experts explore how the metaverse can transform things as we know it
1. Meta’s regional head weighs in on how the metaverse will create jobs and economic opportunities in the MENA region
Sharing his thoughts in an exclusive interview with Arabian Business, the regional director for MENA at Meta, Fares Akkad, said: “At Meta, we’re committed to building technologies that help millions of people who use our platforms to express themselves, stay connected to their loved ones and their communities, and start and grow businesses. We’re helping build the next evolution in social technology – the metaverse.”
Meta supports job creation and unlocks economic opportunities
Meta’s business strategy aligns with the growing emergence of digital creatives in the Middle East and North Africa region.
According to a World Bank report released in 2022, the universal adoption of digital technologies in countries across the Middle East and North Africa (MENA) is expected to create a much-needed surge in jobs and reap huge socio-economic benefits worth hundreds of billions of dollars each year.
Akkad added: “Digital creatives represent a powerfully diverse pool of talent — one that holds the key to reaching the next billion people who are coming online. We believe technology is giving people new opportunities to become entrepreneurs and content creators, and the metaverse has a big role to play here.”
At the apex of the digital technology boom in the region, the metaverse is expected to help unlock economic opportunities for communities and businesses across industries.
“The mobile internet has already allowed people to work, learn, and socialise in ways that are less limited by their physical location. The metaverse will help expand these opportunities even further,” Akkad explains.
“For instance, people will be able to choose to study and train in places that felt off limits because of where they lived or what they could afford. These could help spread economic opportunities and help grow significant sectors of the global economy.”
He adds: “While it’s an exciting and promising vision — there’s still a long road ahead, and for many businesses — the best way to get started is by leaning into their existing marketing strategy today; and start imagining the opportunities for the future.”
Key challenges to overcome in 2022
As the Middle East region slowly emerges out of the Covid-19 pandemic, advertisers and marketers are steadily coming back on their feet.
“In 2020 and 2021, there was a lot of uncertainty and confusion. However, now we are seeing everyone getting used to the new normal. Despite the challenges of Covid-19, successful businesses have proven that customer-centricity is integral to success,” Akkad said.
During the pandemic, connectivity proved essential for social and business continuity in the MENA region, where governments and businesses were able to pivot and respond with a range of measures and solutions for a digital-first world.
“Building the metaverse will be more like how the internet came about than how any one app was launched. Meta isn’t going to build, own, or run the metaverse on its own. Bringing the metaverse to life will require collaboration and cooperation across companies, developers, creators, and policymakers to ensure an open, interoperable, and inclusive metaverse,” Akkad added.
“We are only at the start of this journey and a lot still has to happen before this vision of the metaverse becomes a reality.”
Responding to what precisely needs to be done in order to bring the metaverse to life, Akkad pointed to three key factors:
- Hardware needs to be built: Even if we just look at AR, to bring this vision to life we basically need to fit a supercomputer into a pair of normal-looking glasses. We have to fit hologram displays, projectors, batteries, radios, custom silicon chips, cameras, speakers, sensors to map the world around you and more into glasses about 5 millimeters thick. This is still years in the making.
- Infrastructure needs to be transformed: Models will need to be larger and more complex and there will need to be a dramatic shift towards cloud-based infrastructure to help deliver a scalable platform to support the metaverse.
- Access needs to be improved: Our vision is for the metaverse to reach a billion people in the next decade, but for that to happen, access to hardware has to improve and connectivity across the world has to increase.
Leaning into the metaverse of tomorrow
When asked how businesses can make the most of the metaverse in its nascent stages, Akkad said that it was important for businesses to stay focused on the smart strategies they are using today to reach customers and grow, which will help prepare them for the metaverse of tomorrow.
He explained: “For now, the primary way people will experience the metaverse is through 2D apps, including Facebook, Instagram, Messenger, and WhatsApp. And beyond that, we are focused on building bridges from our apps on 2D screens into more immersive virtual 3D experiences in the metaverse.
“To start planning for this future, it is important for brands to continue growing their brand and business in the digital space on our 2D apps.”
Meta has also begun testing tools to sell digital assets and experiences within its Horizon Worlds platform, which is an expansive virtual reality social media platform focused on virtual events.
Developers who are creating virtual classes, games, and fashion accessories within the Meta’s immersive virtual reality environment, which is accessible via VR headsets, will be able to sell their accessories or offer paid access to the specialised digital spaces they have built.
2. Sheikh Mohammed launches higher committee to develop Dubai Metaverse Strategy in two months
Sheikh Mohammed bin Rashid Al Maktoum, the UAE Vice President, Prime Minister and Ruler of Dubai, has directed the formation of a higher committee to prepare the Dubai Metaverse Strategy.
The higher committee will be headed by the Crown Prince of Dubai Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum and will supervise all future technological developments in the emirate.
Sheikh Mohammed said: “We seek to transform Dubai into the world’s best city in the world to live, work, and invest. The constant development of government services is vital to achieve this goal and ensure Dubai maintains high levels of global competitiveness.
“We are committed to further enhance government operations in Dubai, so that we can provide the best possible environment for the economy to flourish and ensure the greatest quality of life for citizens and residents. I am fully confident of the new committee’s ability to accomplish this goal.”
Sheikh Mohammed bin Rashid Al Maktoum has directed the committee to develop the Dubai Metaverse Strategy within the next two months to contribute to enhancing Dubai’s position as a global centre for new metaverse technology.
The decision was taken during a meeting of the Dubai Council chaired by the Dubai Ruler Sheikh Mohammed bin Rashid in the presence of the Dubai Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum; and Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, the Deputy Ruler of Dubai, Deputy Prime Minister, Minister of Finance, and Second Deputy Chairman of the Dubai Council.
Sheikh Mohammed bin Rashid also revealed a new comprehensive structure for Dubai Municipality in line with Dubai’s priorities, future directions, and development plans in various sectors.
The restructuring aims to transform Dubai Municipality into a specialised institution that adopts a private sector mindset to provide high-quality municipal services.
It also seeks to enhance its ability to keep pace with global changes in the areas of environment, climate change, circular economy, and the acceleration of partnerships with the private sector.
The restructuring also aims to create economic opportunities worth AED 10 billion within five years, and reduce operating costs by 10 percent, while increasing the quality of services by 20 percent.
In March 2022, the Dubai Municipality had revealed plans to work with private sector companies and investors to create a futuristic, human-centred version of the city in the metaverse called One Human Reality.
The metaverse is a network of realistic 3D digital worlds built within a virtual-reality space where people can interact with computer-generated environments and other users. At its broadest, it combines elements of social media, augmented reality, virtual reality, video games, cryptocurrencies, and other advanced technologies.
3. Why the MENA region has ‘amazing potential’ for metaverse businesses
With the Dubai Metaverse Strategy aiming to increase the sector’s contribution to the emirate’s economy to $4 billion by 2030, it is clear that the metaverse business is booming in Dubai.
In fact, given the MENA region’s abundance of creative talent, it is no wonder that UK-based World’s Online Festival (WOLF), which focuses on digital events, is focusing on the region in its expansion.
The company established its regional headquarters in Amman, Jordan, in 2017 with employees extending throughout the GCC and the wider MENA region, according to its CEO Gary Knight.
“Our vision has always been to foster a vibrant community through live audio entertainment, performances, and chat. Even though we are a UK-based startup, we have always been aware of the immense talent and creativity within the MENA region which provided the perfect opportunity and product-market fit for WOLF,” said Knight.
“Over the years, we’ve come to understand and appreciate the regional demographic’s desire to create content, perform, and express themselves online in virtual ways, particularly through Arabic content.
Although the MENA region is home to an extraordinary ecosystem of content creators, they face limited opportunities to take centre stage in the real world.
“The region is continuing to diversify, with the entertainment needs of their growing young adult populations only expanding. This attractive market gives us a chance to understand the region and cultural requirements and build our offering to have an authentic Arabic feel – made by the community, for the community,” he continued.
In practical terms, a regional presence means the start-up is able to offer a fully localised experience for MENA, rather than just translate text from English to Arabic.
“We believe that MENA-orientated social mobile apps have amazing potential in the region for engagement and revenue,” said Knight.
“As a UK-based company, we’ve spent considerable resources and time understanding the culture, and ensuring communication with consumers in the region is optimal. This necessity led us to increasing our resources locally,” he said.
“Hiring qualified regional talent allowed us to diversify our offering by providing a variety of perspectives and insights on the Arabic-speaking world. In addition, we spent a substantial amount of time learning the local business requirements and laws in order to comply with them,” Knight continued.
With its new feature, Showreel, WOLF is providing its users to stream 3D metaverse videos, the next step being “to create 3D immersive worlds so that viewers can not only watch these metaverse gigs, but also immerse themselves in them,” explained Knight.
“They will be able to generate their own digital venue, selecting from a variety of 3D festival stage environments, and perform, or host other performers on their own stage. Through this, entertainers such as poets, comedians, and singers will be able to receive real-time interaction and rewards from the audience,” he continued.
4. Dubai’s Virtual Assets Regulatory Authority to establish metaverse HQ in world first
Dubai’s Virtual Assets Regulatory Authority (VARA) announced Tuesday that it would become the world’s first regulator to enter the metaverse.
The authority will be establishing its metaverse HQ in the virtual world The Sandbox. In a statement, VARA said that its move into the metaverse is an attempt at making the regulator “accessible to its industry in their environment, and facilitate collaborative engagement between global Virtual Asset Service Providers (VASPs), Industry Thought-leaders, and International Regulatory Authorities.”
VARA was established to provide an operating framework for the virtual asset sector to be able to scale while also providing market and investor protections. It expects to regulate the governing principles of services and activities – rather than specific products and technologies.
Inaugurating the VARA MetaHQ on the Sandbox, Sheikh Hamdan bin Mohammed Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, said, “Dubai maintains a leading position at the forefront of technological transformation. We have exceeded the role of an early adopter to become an innovator and participant in shaping the future of this technology.
“Today, VARA joins the metaverse to become Dubai’s – and the Metaverse’s – first government authority, ushering in a new era in which Dubai Government utilises modern innovations to extend its services and regulatory power to audiences in an open technological expanse, without constraints or borders.
“VARA represents a serious effort to build a new, powerful economic sector that contributes to the nation’s economy and creates new investment opportunities, and this is possible through the safe and modern regulatory solutions we envision. Our presence in the metaverse therefore marks the beginning of a new phase in the Dubai Government’s march for the future; one that will have a positive impact in the long run.”
VARA was established “as a mission-focused regulator,” the Crown Prince added, noted that the authority will “nurture and safely scale a rapidly decentralising business landscape founded on four cornerstone principles – secure cross-border interoperability, informed investor adoption, market protection prioritisation and responsible industry participation.”
Helal Saeed Almarri, Director General, Dubai World Trade Centre Authority said, “Dubai views the virtual asset industry as the driver of the global future economy. VARA has been established at a pivotal moment in response to the expansion of the Emirate’s incredibly sophisticated and modern legal framework regulating virtual asset activities. As the first niche regulator for the VA sector globally, VARA’s Metaverse HQ also makes the UAE the first jurisdiction to enter this platform, reflecting our leadership’s aspiration to facilitate a borderless new market enabling sustainable economic freedom.
“VARA’s acquiring land in the Sandbox is symbolic of our belief in this sector, and the onus is on us as government to be the bridge that allows investors and consumers to safely adopt, and collaboratively scale the economy. In addition to yielding direct economic benefit and GDP acceleration for Dubai, the VARA sees this as the first step towards shared learning and expertise development across global regulators, so that the international community can benefit from a virtual economy that has been allowed to scale safely and sustainably.”
5. Metaverse mansions become a reality as Dubai real estate broker offers ultra-luxury virtual properties as NFTs
Union Square House (USH), which is a multi-billion-dirham real estate brokerage in Dubai, is set to launch the first metaverse mansions in the MENA region in 2022.
USH plans to develop and sell ultra-luxury digital properties as NFTs, with or without their physical twins.
The initiative comes at a time when Dubai’s public and private sectors are at the forefront of Web3 adoption.
The founder and managing director, Union Square House (USH), Gaurav Aidasani, said: “Our foray into the metaverse stems from our strong belief in a prevalent virtual world that is set to transform many sectors, on top of which is real estate.
“In the long term, owning virtual assets such as real estate will benefit those with access to the metaverse, leaving others behind. In futuristic cities like Dubai, which thrives on a predominantly young generation, people understand the value and potential of digital assets.”
The adoption of non-fungible tokens (NFTs) in Dubai has been snowballing. The real estate sector is considered one of the primary beneficiaries, standing first in line to benefit from Web3 applications, which run on the blockchain technology using decentralised, peer-to-peer networks.
According to recent market data, real estate sales in the metaverse reached $500 million in 2021, and the sales volume is expected to double in 2022. The metaverse real estate market is projected to grow at a CAGR of 31 percent from 2022 to 2028.
Leveraging Dubai’s astute investor community and a relatively young population, which is characterised by high levels of familiarity and comfort with the concept of virtual worlds and its prospects, USH plans to develop and sell ultra-luxury digital properties as NFTs, with or without their physical twins.
“We believe digital real estate has already gone mainstream. A number of lenders are even offering mortgages to support customers in buying virtual properties,” Aidasani added.
“All these developments give fresh momentum to digital properties, presenting investors in the Metaverse with an opportunity to multiply the value of their virtual assets over the coming few years.”
The most recent metaverse developments include:
- Most recently, the Dubai World Trade Centre has launched MetaIncubator, the first metaverse incubator in the Middle East.
- The Ministry of Economy has hosted the world’s first ever economic summit, Investopia Investment Summit, in the metaverse.
- The Ministry of Health and Prevention (MOHAP) has also developed a new Metaverse platform, allowing people to access medical care and receive health-related support virtually.
- Within the private sector, Dubai-based metaverse startup Eikonikos has recently raised $2 million in pre-seed funding.
In addition to ownership, investing in digital mansions allows buyers to view their properties in Augmented Reality form, and interact with other users and digital neighbors.
The consistent growth of the UAE economy and the nation’s remarkable response to the pandemic bolstered Dubai’s global appeal among investors, residents and visitors.
The positive sentiment and market appeal continue to attract investors, not least those investing in virtual worlds.
Capitalising on the government’s efforts and leveraging a team of value-driven professionals with a collective focus on customer satisfaction have paved the way for USH to venture into the metaverse.
6. Damac Group steps into the metaverse with $100 million investment in “digital cities”
UAE-based property giant Damac Group is investing $100 million to build digital cities in the metaverse as virtual and physical worlds continue to collide.
Damac General Manager Ali Sajwani will head the new initiative, named D-Labs.
The initiative forms part of the company-wide ambitions to move into digital assets and non-fungible tokens (NFT), and Ali Sajwani is tasked with delivering the organisation’s goal to be a leading global digital brand, a Damac statement said.
“Over the past two years we have been aggressively driving our digitisation efforts, and this new initiative into the metaverse will only further leverage our digital footprint,” Sajwani said.
“As well as updating our systems, processes and operations across departments, we have been investing in building a strong team of skilled and talented experts to help support our ambitions of being a digital leader.”
Since last year, the group’s real estate arm, Damac Properties has been offering home buyers a 3D virtual experience that utilises virtual reality (VR) and augmented reality (AR) technology.
On Monday, Dubai-based real estate broker Union Square House said it would launch metaverse mansions this year. USH plans to develop and sell ultra-luxury digital properties as NFTs, with or without their physical twins.
According to recent market data, real estate sales in the metaverse reached $500 million in 2021, and the sales volume is expected to double in 2022. The metaverse real estate market is projected to grow at a CAGR of 31 percent from 2022 to 2028.
7. Dubai-based BEDU, which is a pioneer in Web3 and metaverse technologies and solutions, has launched in the UAE – and is looking to create an NFT factory and a proprietary metaverse
Dubai-based BEDU, which is a pioneer in Web3 and metaverse technologies and solutions, has launched in the UAE with a pledge to empower businesses, governments, and individuals with the tools and knowledge they need to ‘build the next digital frontier’.
BEDU was formed to accelerate the realisation of the vision for Web3, blockchain, non-fungible tokens (NFT), and the metaverse, while bringing expertise and investment from around the world to the UAE.
The co-founder and chairman of BEDU, Khaled Al Huraimel, said: “BEDU is committed to creating world-leading blockchain, Web3, and metaverse solutions within the UAE and then expanding that progress throughout the MENA region and beyond, because we see the country as a potential Silicon Valley for NFTs and blockchain.
“We are born out of the UAE, but global in our vision for the next iteration of humanity’s shared digital world. We are the leader in the blockchain space – a gateway to the metaverse for the UAE and the region. Together with our clients, we shall build a new virtual economy and the next digital frontier.”
The first exciting project from BEDU as part of the UAENFT collection is the ‘From Desert to Mars’ that showcases works created by seven of the most creative and influential international NFT artists.
Their artwork celebrates the UAE’s journey and evolution by exploring the dawn of the nation with the discovery of oil, the real estate boom, and finally the space venture.
“BEDU is a guide to a new world, a world that is taking shape in our familiar digital spaces,” said Misha Hanin, co-founder and CEO of BEDU.
“Our technologies reach from one side of the innovation spectrum to the other. We use AI, ML, and the world’s most sophisticated cybersecurity to deliver a democratized, ethical blockchain that the world can trust. If you want to witness the future of blockchain, NFT and the metaverse, keep your eye on the UAE. And keep your eye on BEDU.”
8. Experts explore how the metaverse can transform things as we know it
Here’s how the metaverse opens up a whole new vista for the imagination and allows us to interact with each other and brands in the digital realm, says Ali Sajwani, general manager of operations at Damac Properties.
Enter the metaverse, and you can instantly travel. Even to the moon, Mars, or places which only lived in the imagination before the virtual and augmented reality breakthrough.
The metaverse opens up a whole new vista for the imagination and how we interact with each other and brands in the digital realm.
But what about travel? Actual travel? Can the metaverse change the way we travel?
A simple answer would be yes, in that it negates the need for most corporate travel. Don a VR headset in the comfort of your own home or office, and you can appear as an avatar – a virtual representation of yourself – in a company meeting room on the other side of the planet. In real-time. I think that’s amazing.
If you’re more into simply using the metaverse and its myriad applications for leisure, why not take a walk on a beach or around the Eiffel Tower? You can.
Or perhaps you’d rather buy the Eiffel Tower? You can do that, too!
What’s missing in both these scenarios is the sense of being there; the smells, the air, the ability to touch. And even those are being worked on in the metaverse.
The pandemic certainly pushed the speed at which the world was willing to embrace virtual travel, but now you can experience a flight, hotel room and tours, all generated in virtual reality.
Emirates launched a VR app back in 2021, allowing users to view cabin interiors onboard the Airbus A380 and the Boeing 777-300ER. And now, the Dubai airline has announced a $10m investment in NFTs and the metaverse.
It sees NFTs as a useful tool in ticketing and for recording journey information such as flight times and distances travelled.
And you have to take notice when you realise companies like aircraft manufacturer Boeing is working with 3D engineers to create an immersive virtual flight experience.
Part of that idea is so that potential passengers can enjoy a ‘try before you fly’ experience. You might also walk around your hotel and room before making a booking.
Of course, this means that consumers will wield even more power over where they choose to go and how they get there.
The metaverse heralds a new era in consumer choice, but will it replace the feelings evoked by actual physical world travel? I don’t think so.
What it can do is enhance the entire travel and tourism experience, bringing massive advantages to consumers when planning and booking; and benefits to the industry in terms of greater awareness, customer satisfaction, long-term cost savings and, of course, the powerful benefits of data gathering and mining.
Metaverse travel is a great leveller. Simulated travel experiences mean access to exotic locations need no longer be the realm of the privileged and rich, albeit a simulated experience.
And with rising concerns over the environmental impact of travel (especially long-haul destinations), perhaps we should be more content to travel wide and far from the comfort of our couches?
Even traditional travel agents could conduct their business via the metaverse, offering an infinitely richer booking experience. The ability to represent yourself via an avatar could make booking just as interactive as in the real world.
Real relationships can be formed in the metaverse, given that we can talk and move around together, enjoying shared experiences.
Imagine how rich a booking experience might become if a travel agent avatar can literally show you around your room, the immediate area, and the beach…
All we need to do to enjoy a whole new era in travel is embrace the technology, slip on a headset and enter a whole new world of experience.
And I see nothing wrong with that, on the contrary, I find it fascinating!
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