Dubai launches metaverse strategy

Last month, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council, launched the Dubai Metaverse Strategy, with the aim of turning Dubai into one of the world’s top 10 metaverse economies.

What is a metaverse?

In simple terms, a metaverse is a virtual reality space which allows users to interact with each other and immerse themselves in a digital environment for a variety of purposes, such as social (e.g., online gaming or social media), personal use (e.g., shopping), or business (e.g., hosting corporate events or training). Users can also conduct transactions on the metaverse using digital currency or NFTs.

The metaverse is also becoming increasingly relevant in the legal world; for example, we have seen arbitrations, mediations and settlements conducted using avatars.

The Dubai Metaverse Strategy

The Dubai Metaverse Strategy seeks to:

• build on Dubai’s achievement of attracting more than 1,000 companies in the fields of blockchain and metaverse;
• promote Dubai’s ambitions to support more than 40,000 virtual jobs by 2030;
• foster innovation, enhance the metaverse’s economic contributions through R&D collaborations, and promote advanced ecosystems utilising accelerators and incubators that attract companies and projects to Dubai;
• foster talent and invest in future capabilities by providing the necessary support in metaverse education aimed at developers, content creators and users of digital platforms in the metaverse community; and
• develop Web3 technology and its applications to create new governmental work models and development in vital sectors, including tourism, education, retail, remote work, healthcare and the legal sector.

Dubai Metaverse Strategy - The Official Portal of the UAE Government

UAE and Digital Assets

The Dubai Metaverse Strategy follows the creation of the Dubai Virtual Assets Regulatory Authority (VARA) and the publication of the Virtual Asset Law earlier this year, as well as the DIFC Courts’ launch of the new Digital Economy Court which is intended to deal with national and international disputes relating to current and emerging technologies including blockchain, AI and cloud services. Each of these is a significant step forward in consolidating Dubai’s position as a global pioneer in the virtual world. 

Clyde & Co is seeing an increase in instructions connected with digital currencies, NFTs and other digital innovations, as adoption of these developing technologies increases. We will be following these updates closely and are on hand to assist our clients with embracing these new technologies in accordance with the new legislation.