Dubai to establish task force to track digital economy initiatives

Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, and Sheikh Maktoum Bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance, reviewed vital technology trends in the metaverse and issued directives to form a task force to track the latest developments in the digital economy.

The move is part of the directives issued by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, during the previous meeting of the Dubai Council. His Highness had directed the formation of a higher committee to supervise technological developments in the emirate and oversee developments in the digital economy, contributing to enhancing Dubai’s status as the best city in the virtual space thanks to innovative services and its advanced regulatory and legislative framework.

Sheikh Hamdan said the formation of the higher committee to oversee technological advances in Dubai reflects the farsighted vision of Sheikh Mohammed Bin Rashid, who always looks ahead and takes proactive and prompt decisions to harness potential opportunities. The decision would cement Dubai’s status as a key city in the metaverse, His Highness added.

“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,” Hamdan said.

Sheikh Hamdan noted that the committee had started work on key pillars and the objectives of the Dubai Metaverse Strategy. Based on data and information, the strategy aims to increase the contribution of the metaverse sector to Dubai’s economy to $4 billion by 2030 and increase its contribution to Dubai’s GDP to 1%.

During the meeting, Omar Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy and Remote Work 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% and increase the productivity of engineers by 30%, 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.

The metaverse is a virtual-reality space where users interact with computer-generated environments and other users. It combines elements of social media, augmented reality, virtual reality, video games, cryptocurrencies, and other advanced technologies.

Current estimates expect business revenues from the metaverse could grow from $180 billion to $400 billion by 2025.

Earlier this month, Dubai’s Virtual Assets Regulatory Authority (VARA) said it had entered the metaverse with the establishment of its Metaverse HQ, making it the first regulator to have a presence in the emerging digital space. Expanding VARA’s resources to a borderless audience is part of Dubai’s strategy to create a prototype decentralised regulator model. It also aims to make it accessible to government and industry leaders, other authorities and virtual asset service providers to help shape the future digital economy. VARA’s MetaHQ will utilise The Sandbox platform, an Ethereum blockchain-based application that allows users to create, sell and purchase digital assets.

As the world’s first regulator to make its debut in the Metaverse early this month, VARA seeks to ensure that the regulator is 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, established to provide a secure and progressive operating framework for the virtual asset (VA) sector to be able to scale, while assuring market and investor protection, expects to regulate the governing principles of the services and activities, rather than the continually-evolving products and underlying technologies. This bold move reflects Dubai Government’s confidence in Virtual Assets being integral to the future digital economy, and its readiness to establish the Emirate as the world’s Virtual Assets Capital.

In an emphatic commitment to enable economic freedom in the Metaverse, VARA joins private sector game-changers, innovators and market makers across ICT, Financial and Professional services, Lifestyle, Entertainment and FMCG beyond the world of gaming and VASPs.