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ALI SAJWANI
D-LABS
The Future is Here
Far from being just an ethereal concept, the Metaverse has, for all intents and purposes, become a reality of our time. It forms an integral part of what we now call Web3.0, the latest iteration of the world wide web that features a virtual world linked to our physical reality.
In the Metaverse, the possibilities are almost endless, even more than what is considered
‘real’ in our two-dimensional world of space and time. Initially the domain of gamers, the
Metaverse has broadened its boundaries to increasingly include other aspects of our lives – from dining and retail to fashion and real estate.
As a sign that the Metaverse is a serious direction in which the world may be headed,
His Highness 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 body has been tasked to lay the foundations for Dubai to be at the forefront of this future reality, today.
Quoting His Highness’ official statement, he 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.”
With such a focused and determined vision coming from the top echelons of the government, expect the Metaverse to become an even more palpable reality in the UAE sooner than later. Following Sheikh Mohammed’s lead, for example, Dubai Municipality has revealed plans to collaborate with the private sector to create One Human Reality, a futuristic, humancentered version of the city in the Metaverse.
Among the business sectors that is the first to benefit from the evolution of the Metaverse is the real estate industry. A MetaMetric Solutions report estimated that real estate sales on various Metaverse platforms reached just a little over $500mn last year. With its ever-growing popularity, sales of digital properties could reach a massive $1bn by the end of this year, the report further revealed.
Another first-to-the-Metaverse market pioneer is the UAE’s Ministry of Economy, which hosted the world’s first ever economic summit, Investopia Global Investment Summit, in the Metaverse. A Dubai-based restaurant recently launched a Metaverse operation, where customers can place their orders virtually, complete their transaction with digital payments, and enjoy their meal right in the comfort of their homes. A local fashion brand likewise expanded its operations into the Metaverse to sell luxurious power suits for women and will accept cryptocurrencies as payments.
Global tech and consulting firm Gartner identifies the Metaverse as among the top emerging technology trends in 2022 that will have a significant impact on how we do business, or live our lives, in the years ahead. It will spur global spending on Virtual Reality (VR) and Augmented Reality (AR), technologies closely linked to the Metaverse, to about $73bn in 2024, up from just $12bn two years ago.
What makes the Metaverse a compelling proposition is that it helps create a reality that is experiential, a digital version that allows anyone to own virtual assets like land or a piece of clothing, or experience digital realities, such as the UAE wedding that took place in the Metaverse.
As with any new technology, there are concerns over the security of the Metaverse reality and possible intrusions into the privacy of not just businesses but of people as well. However, given that it is powered by blockchain technology, the platform offers a measure of security to some degree. Certainly, with the proliferation of sub-technologies that will exist in the Metaverse, it could open a floodgate of vital security and data privacy concerns. Yet, these challenges are not insurmountable, and can be resolved as the Metaverse unfolds.
Industry insight
MADHAV DHAR
ZĀZEN PROPERTIES
Shifting Buyers’ Behaviour Shapes Rising Demand
While rental rates are rising across the country, real estate demand continues to boom. A major shift in buying behaviour has come through as a result of the pandemic that has extended into the first quarter of the year and a greater preference is placed on completed residential units, rather than on off-plan units. This is reflected in the sales seen through the first quarter of the year as the Dubai Land Department says that 70% of all transactions were finished units. 2022 has seen more end users continue to buy across the city due to low mortgage rates as these buyers are looking for larger living spaces in low density communities. The average sales price has increased 11% in the first quarter of 2022, in comparison with the same period last year (2021), mainly due to premium villa sales. Ready apartment buildings with larger
spaces and a strong community offering also performed well as stock of ready villas depleted.
Apartments currently account for the majority of total completions in the first quarter of 2022, as the supply of new villas are limited due to lack of stock and pipeline. Villa stock in prime Dubai areas is limited and 2022 will see only a 3.6% of planned deliveries in prime submarkets, keeping prices at the higher end.
Over 10,000 new townhouses and villas have been launched in May 2022 by large developers but handover for these developments is not expected until between the end of 2024 and 2025. Of the villas being developed, 30% of them are in luxury communities that have golf courses, like Dubai South, Dubai Hills and Arabian Ranches III and only 5% are being developed in other market locations, which will help prices in those areas stay strong. The high supply of villas and townhouses in the coming years will result in a drop in prices below the USD$1.36 million. As per the Dubai Statistics Centre, the population in Dubai was just over 3.5 million people as of April 2022, with a target of 5.8 million people by 2040, and the city is ready for it. Whether it is apartments or villas, the city is bustling with constant new developments and is ready for the growing population. A very large number of new apartment buildings, villas and townhouses are being developed throughout the year and in the coming years and are all aligned with Sheikh Mohammed bin Rashid’s 2040 Urban Master Plan in mind, with the aim of transforming the emirate, and making it more sustainable and interconnected for an overall safer and more efficient way of living for everyone.”
Thanks to the leadership of Dubai, the city has become a true global destination, a business hub and a secure home base. People around the world now realize that if and when a new pandemic hits, or if there is economic or political turmoil, Dubai is the best city to be in as we have witnessed over the last couple of years. Additionally, the recent updates to the UAE Golden Visa regulation is just another great initiative that will spur investment into real estate even more, especially with the flexibility that these new rules have to offer, providing residents with a strong reason to invest in the country long term and allowing non-residents to make UAE their second home.
ZOLTAN RENDES
SUNMONEY SOLAR
Importance of a BottomUp Approach in the Current Climate Crisis
We hear or read about climate change every day, as our planet is melting at the poles and drying out in the middle as a direct consequence of our actions. Even so, a good number of people think climate change is a hoax, and an even bigger number of people believe it has or will have no impact on their lives. However, climate change is undoubtedly one of the most pressing issues of our time. The scientific community has really been unequivocal in its assessment that human activity is the primary driver of climate change and that the consequences of inaction are dire. Unfortunately, however, the response to this crisis has been lukewarm at best. Many still view climate change as a distant problem that does not require immediate action. Others see it as an insurmountable challenge and have given up hope altogether. What we desperately require is a radical shift in our perception of climate change – from viewing it as a problem waiting to be solved to an opportunity to be seized.
A bottom-up approach to combating climate change can be very effective, and this is because people are far more likely to take action if they feel personally invested in the outcome. People need to be motivated to act in their best interests. For example, when individuals come together to install solar panels, they not only lower the cost of going solar – they also increase public awareness, create a sense of community ownership, and benefit greatly. At SunMoney, we run the largest global community solar power programme. It empowers small and individual investors to invest in small affordable portions of solar power plants, through which they can earn monthly returns while helping fund clean energy generation on a larger scale. Climate change is a global problem that requires a global solution, the leadership of countries will continue to do their bit, but that doesn’t mean that each and every one of us can’t do our part. We all have a role to play in combatting climate change. The way we live, what we consume, and the way we treat the planet all contribute to climate change. And if we want to stop it, or at least slow it down, we need to alter the way we live and our mindset, most importantly. Many people see this as a sacrifice. They see it as giving up their lifestyle or their comforts in order to save the planet. What if we saw it as a chance to make a difference and an opportunity to build a better future? There are measures that help curb or control climate change, and the same can be made profitable as well. So, there is a business case for climate action. This kind of thinking can turn the battle against climate change into an opportunity by incentivising the community to be more involved through everyday activities. But this movement has to come from the bottom up. Only then can it scale up to have the kind of impact we need to make a difference on a global level.
It’s also crucial to remember that climate change is not just an environmental issue – it’s an economic one as well. The costs of inaction are harmfully high and will only continue to rise as the effects of climate change become more severe. On the other hand, the benefits of taking action are significant. If the larger population were to take proactive action on climate change, the global economy could begin to see visible improvements in the years to come. This is a huge opportunity that we cannot afford to miss. We cannot afford to just wait for someone else to solve the problem when there is no one else but ourselves. We are not fighting the climate; we are fighting a greater enemy, ourselves. Change starts with us, within our homes and communities.
