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UAE secures $25 billion crypto transactions

DMCC special report examines growth drivers, digital decentralisation in crypto, metaverse, DeFi

Published: Mon 15 Apr 2024, 8:26 PM

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Why crypto foundations should be robust, clear

Why crypto foundations should be robust, clear

The UAE secured $25 billion of crypto transactions in 2022, and is pushing to attract further investment through accommodative regulatory stances, a report showed on Monday.

Dubai Multi Commodities Centre (DMCC) on Monday released a special edition of its Future of Trade thought leadership report focused on Web3, examining the key drivers of growth, innovation and digital decentralisation in a number of technology trends.

The report, titled “Digital Decentralisation: Crypto, DeFi and the Metaverse”, explores the market outlook and opportunities for Web3 trends rooted in a blockchain-based digital infrastructure, including cryptocurrency, decentralised finance (DeFi), and the metaverse. The report assesses recent challenges in these sectors and forecasts a period of maturity, with recommendations for industry and regulators to nurture and fast-track industry growth in the coming years.

The market size for the metaverse is set to rise to $3.4 trillion by 2027 supported by road-tested use cases and the rapid advancements of Artificial Intelligence. The global DeFi market is expected to grow from $13.6 billion in 2022 to $600 billion by 2032, driven by the demand for fast and’feeless’ financial services. Meanwhile, the crypto market appears set to stabilise after a period of turbulence, with 2023’s Bitcoin revival casting a spotlight on renewed appetite among industry and institutions for durable and value-added services.

However, much depends on the path regulators take and their ability to balance innovation, consumer protection, and fraud risk. The report reviews government approaches across key regions, namely the MIddie East and North Africa (Mena), Asia, Europe and the United States.

Ahmed Bin Sulayem, executive chairman and chief executive officer, DMCC, said: “Our latest Future of Trade report showcases the exceptional growth on the cards across Web3, from crypto and DeFi, to AI and the metaverse. The global metaverse market is projected to rise to over $3.4 trillion by 2027, with advances in AR/VR technology opening a vast realm of opportunities beyond gaming and e-commerce to real estate, retail, education, and healthcare. Digital decentralisation is perhaps the most seismic industry trend in the technology era and the insights in our Future of Trade report reinforce how Dubai and the UAE are supporting its growth trajectory with an investor-friendly approach that balances innovation with the need for consumer protection. I believe that DMCC is perfectly positioned to assist the next wave of global Web3 companies fully seize and capitalise on the rich opportunities in this fast-moving landscape.”

Belal Jassoma, director of ecosystems, DMCC, said: “With a positive and progressive approach to regulation, active engagement with market players, and ample opportunities to innovate and grow, this report demonstrates why Dubai remains a premier hub for Web3 businesses. Through DMCC Crypto Centre, we have enabled one of the most supportive ecosystems in the world for those operating in this space, expanding last year to over 600 members with the provision of dedicated services and top ecosystem partners. I believe that the critical insights and perspectives contained in our Future of Trade report will give further confidence to our members as well as to new market entrants looking to grow from Dubai.”



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