Gulf Business Web3 - October 2023

A VIRTUAL PERSPECTIVE

PULSE WORLD’S MEHDI CHERIF ON THE COMPANY’S NEW APP AND HOW IT AIMS TO TAKE USER EXPERIENCE TO A NEW DIMENSION

TAKE STOCK: The blockchain ecosystem provides investors with tools to evaluate opportunities and risks

CRYPTO OASIS: Fostering innovation, supporting entrepreneurship

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A STRATEGIC GUIDE

The blockchain ecosystem offers three areas where crypto investors can gain more insights compared to its traditional counterparts

CONTENTS

ENDLESS POSSIBILITIES

Mehdi Cherif, CEO and co-founder of Pulse World, the metaversebased social network platform, on the company’s new app and how it prioritises accessibility, innovation and user engagement

A PROMINENT HUB

How the UAE has positioned itself as a leading destination for businesses

Nestled between East and West, the UAE is a pivotal gateway for global business and trade. This unique position lets startups tap into various markets seamlessly.”

— AMIN AL ZAROUNI CEO, Bedu

010 | 2023

Revolutionary, new out-of-home (OOH) advertising medium, powered by innovative technology.

This unique and globally patented Escalator Step Branding Solution that gives brands an unrivaled opportunity to connect with audiences.

METAVERSE GOVERNANCE

Who will govern the metaverse?

We explore the possibilities

THE INDUSTRIAL METAVERSE

How the virtual environment is enabling deeper collaboration in different sectors

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A GULF BUSINESS INITIATIVE

Editor-in-chief

Obaid Humaid Al Tayer

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Ian Fairservice

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EDITORIAL

Editor Neesha Salian neesha.salian@motivate.ae

Tech editor

Divsha Bhat divsha.bhat@motivate.ae

Digital editor

Marisha Singh

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Senior feature writer

Kudakwashe Muzoriwa

Kudakwashe.Muzoriwa@motivate.ae

Senior art director

Freddie N. Colinares

freddie@motivate.ae

PRODUCTION

General manager – production

S Sunil Kumar

Production manager

Binu Purandaran

Production supervisor

Venita Pinto

SALES & MARKETING

Senior sales manager

Sangeetha J S

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Group marketing manager

Joelle AlBeaino

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WEB3 REMAINS ‘HIGHLY RELEVANT’ FOR PRIVATE EQUITY

WHY WEB3 IS LIKELY TO EMERGE AS A CRITICAL THEME OVER THE NEXT 10 YEARS

Watching almost $3tn in Web3-related asset value shrink by more than 70 per cent is unnerving, to say the least. But the rise and fall of crypto isn’t really the issue. What counts are the core underlying technologies that have made Web3 possible, a set of innovations that will have far-reaching implications for many parts of the global economy, private equity included.

The emerging Web3 ecosystem now has thousands of companies funded by approximately $94bn in startup capital from venture funds, hedge funds, private equity and other investors. Major companies across industries – JPMorgan, Goldman Sachs, Google and Disney among them – have begun to think about how Web3 will influence their businesses and what it could unlock in terms of managing transactions and engaging with customers. Crypto and non-fungible tokens (NFTs) have led wealthy young consumers to some of Web3’s foundational concepts, like digital wallets that can be used across platforms. Forward-thinking private equity firms are also focused on the ways in which blockchains, tokens, smart contracts, and related Web3 technologies will a ect how they invest and operate.

We already see that Web3 is becoming increasingly relevant for private equity in the sense that it continues to attract sophisticated investors, continues to act as a disruptive threat (or opportunity) and as a tool for new fund strategies.

THE EVOLUTION OF WEB3

Despite all the Sturm und Drang around crypto, there’s no denying it has been an important proof of concept for how Web3 technologies work together. Web3 is a promise of an improved version of the Internet, one that is more interoperable than today’s siloed web.

Web1, which launched in the 1990s, was read-only, meaning content was pushed at users and nothing flowed the other way. Web2 ushered in social media and the ability to post your own content. Web3 is evolving as a new kind of internet, with open protocols and standards that allow for new avenues of value transfer, data sharing, and application development across platforms.

The foundational building blocks are blockchains, smart contracts and tokens. Blockchains are open, decentralised databases and computing platforms that create security through a consensus mechanism. With the development of Ethereum starting in 2014, blockchains allowed users to securely execute lines of code – known as smart contracts – ‘on chain’.  Tokens, meanwhile, are digital representations of data or assets registered on the blockchain ledger. They can be imbued with clearly defined terms of use and can carry with them reams of data.

From these building blocks come many core Web3 concepts and tools. They include dApps (decentralised applications built on blockchain networks), DeFi (decentralised finance networks enabled by smart contracts), DAOs (decentralised

WEB3 is evolving as a new kind of Internet, with open protocols and standards that allow for new avenues of value transfer, data sharing, and application development across platforms

autonomous organisations), digital wallets enabling persistent digital identity and open metaverses.

IDENTIFYING DISRUPTION THREAT

While funds that focus on more mature companies and industries may not want to play in the Web3 arena, they’d be ill advised to ignore it. Over the next decade, the burgeoning set of Web3 innovations could a ect a broad sweep of industries and companies, some of which aren’t necessarily obvious today.

Funds need to understand what these changes might mean for more traditional portfolio companies –both in terms of disruption risk and opportunities to go on o ense. Those insights come from scanning the current portfolio for potential Web3 exposure and conducting due diligence.

The most e ective scans map a portfolio sector by sector, looking at the pace of potential disruption, regulatory changes, and other factors that might accelerate or decelerate change. That leads to a clearer picture of how and when Web3 is likely

to reshape the industry and how much opportunity there might be to capitalise on those shi ts.

A WEB3 LENS ON FUND MANAGEMENT

Even as they consider how Web3 is a ecting companies in their portfolios, a growing number of private equity firms are moving decisively to explore how Web3 might change the way they think about strategy and operations. The ability to tokenise real assets via blockchains and smart contracts could lead to important innovations and features for alternative asset products. Notably, tokenisation could allow fund managers to build in a tailored secondary liquidity mechanism, or make it easier to use fund investments as collateral and that o ers a range of potential benefits. On the operations side, tokens could lower administration costs by automating manual processes and enabling structured secondary trading mechanisms, custody, margin lending, reporting, and other features that could also be tailored to di erent types of fund products.

Additionally, smart contracts and distributed ledgers promise to enhance e ciency and transparency by creating an immutable record of historical token ownership, lowering the cost and complexity of reporting and regulatory compliance. Nearer at hand are solutions based on blockchains and smart contracts that can transform back-o ce operations.

Whether you’re an investor funding the next generation of IT infrastructure, a fund manager performing due diligence on traditional companies exposed to Web3 changes, or a PE strategist evaluating new types of funds and distribution channels, Web3 is very likely to emerge as a critical theme over the next 10 years. It may not be time yet to dive in headfirst. But, for many funds, it is time to begin building depth in Web3 and evaluating how to turn this technological shi t into an advantage.

Brahim Laaidi, partner and Thomas Olsen, global co-lead of Web3 and metaverse practice, Bain & Company

WEB1, which launched in the 1990s, was read-only, meaning content was pushed at users and nothing flowed the other way WEB2 ushered in social media and the ability to post your own content

Pic: Getty Images

Even as they consider how Web3 is affecting companies in their portfolios, a growing number of private equity fi rms are moving decisively to explore how Web3 might change the way they think about strategy and operations”

UNL CKING OF TOKENISATION

THE POTENTIAL

TOKENISATION HAS THE POTENTIAL TO REVOLUTIONISE INDUSTRIES, WHICH IS EXPECTED TO HAVE A TRICKLE-DOWN EFFECT ON THE ECONOMY

Have you ever walked into a gaming parlour, or a snack bar, and exchanged cash for ‘tokens’? These tokens gave us the right to play the arcade game of our choice, or buy the snack of our choice. Over the years, the word token has assumed a new meaning, but it is not very di erent from its old meaning. A token is nothing but a representation of a particular data-set, asset, right or even a utility. Now, the process of converting the underlying asset, right or utility to this tokenised form involves technology.

EARLY DEVELOPMENTS

The early uses of technology-enabled tokenisation were in the financial services industry, where sensitive information, such as credit card numbers, social security numbers, and other personally identifiable information was tokenised into a string of alphanumeric characters. Today, tokenisation has evolved even more, into the process of technologically converting an asset or rights to a cryptographically secured, blockchain enabled unit. This means that the tokens are secured and recorded on immutable distributed ledgers. Blockchain has now paved way for tokenising real estate, gold, art, collectibles, carbon credits and even cruise ships! Conceptually speaking, anything that is deemed valuable can be tokenised. Tokenisation has the potential to revolutionise many industries, which is expected to have a trickle-down e ect on the economy.

For example, let us assume a scenario where a person can hold and transfer a real estate asset through a digitally secured token. Imagine being able to sell an apartment, without having to execute multiple sale documents and multiple visits to departments?

This o ers enormous benefits for all stakeholders involved: the buyer, seller as well as the land regulators. To name a few, these include, ease of transaction, improved liquidity, disintermediation, transparency, faster settlement and lower costs.

Now, let us look at a token that represents an equity share. The token will entitle token-holders to rights similar to those enjoyed by traditional shareholders – it may represent ownership over an underlying share or voting rights or the right to dividends.

Such tokens are commonly referred to as ‘security tokens’. Tokenisation in capital markets can allow investors to bypass market intermediaries and enable faster and smoother transactions. The use of blockchain technology can reduce the risk of error and make it cheaper and easier to manage complex compliance by programming compliance rules directly into the architecture of each token. Tokenisation also makes it easier to trace provenance and transaction history, which in turn ensures better record management for dispute resolution.

The benefits of tokenisation are endless. Taking account of these, regulators around the world are devising new frameworks. The issuance of security tokens around the world – including in the UK, Hong Kong, Australia, Singapore – has attracted requirements similar to those dealing with issuance of shares.

IN THE GCC

The UAE has been a pioneer, being one of the first countries globally to introduce regulations governing issuance of security tokens. Within onshore UAE, the Securities and Commodities Authority (SCA) first issued regulations governing virtual assets activities in 2020 where it outlined the regulatory treatment for various types of tokens. Since 2020, SCA has introduced several changes to its regulations for blockchain based activities. The financial free zones of the UAE, ADGM and DIFC, also have comprehensive regulations governing issuance of security tokens. At the GCC level, Bahrain also supports issuance of security tokens whereas Saudi Arabia is in the process of creating the framework.

The UAE’s enabling regulatory environment has attracted strong interest from companies worldwide who are now considering bringing their innovative business models into UAE’s

tokenisation landscape. However, there are still multiple operational challenges to wider adoption of tokenisation, in the UAE, and abroad, such as (a) lack of flexibility in the types of tokens recognised and permitted; (b) lack of support for secondary trading; and (c) slow adoption of blockchain at the government level.

But, in addition to operational challenges, tokenisation is faced with a bigger, more fundamental problem. While all securities on the blockchain are security tokens, not all security tokens may be viewed as securities.

This begs a few questions – should all types of security tokens be regulated by securities regulators? While for some tokens, such as those that actually represent shares or debentures, albeit on blockchain, the answer is simple – yes!

The waters get murkier in case of tokens  that represent assets, or rights, that themselves are not securities, like art, or real estate. One of the primary obstacles to real-estate tokenisation today is that businesses seeking to tokenise real-world assets are being required to set up special purpose vehicles and issue security tokens. So, for these types of tokens, should there be bespoke regulatory frameworks governing tokenisation?

The world remains divided on these questions. However, to reap the benefits of tokenisation, it is crucial to get these answers. A terall if the ultimate aim of tokenisation, both decades ago at a gaming arcade, and today, in case of real-world assets, is ease, then how can regulators facilitate this ease, while still regulating crucial aspects? Food for thought?

Kokila Alagh, founder, Karm Legal

Ankita Dhawan, senior associate designate, Karm Legal Consultants

Praveena Pechetti, senior associate designate, Karm Legal Consultants

The issuance of security tokens around the world – including in the UK, Hong Kong, Australia, Singapore – has attracted requirements similar to those dealing with issuance of shares”

IT WAS NEVER ABOUT NFTS

In the ever-evolving world of blockchain technology and digital assets, one trend has captured the imagination like no other: NFTs, or nonfungible tokens.

Initially, the spotlight shone on these tokens as they ushered in a new era of digital collectibles, from pixelated apes to virtual real estate. However, it’s crucial to recognise that the true significance of NFTs extends far beyond their current applications. It’s not just about NFTs themselves; it’s about the transformative technology they represent and the uncharted territories they are poised to explore.

The first wave of NFTs was marked by the emergence of digital collectibles that gained widespread attention and demonstrated the potential for blockchain technology to redefine ownership in the digital age. These digital treasures, o ten whimsical in nature, served as a tantalising glimpse into the possibilities of the blockchain.

The second wave of NFTs, however, heralds a new chapter in this unfolding narrative. It’s about bridging the divide between the physical and digital worlds.

NFT AND ART

Take, for instance, the audacious project by ArtFi, that tokenised the paintings of renowned artist Sacha Jafri at Token2049 in Singapore in September 2023.

AS THE WORLD HURTLES TOWARD TOKENISATION, NFTS COULD SERVE AS THE CONDUIT FOR COMMERCE

Faisal Zaidi, co-founder and CMO, Crypto Oasis

Thus, the scope of NFTs encompasses a diverse range of creative domains, including music, loyalty programmes, and even luxury brands like Rolls Royce attaching NFTs to their cars.

This transformative technology is fundamentally altering the lives of artists and creators, offering an alternative to the traditional gallery model. With NFTs, artists can now forge a direct path to transforming their passion into a sustainable career. Especially, as NFTs ensure exclusivity and authenticity.

CLEARING THE AIR

One common misconception about NFTs is their vulnerability to piracy. However, one of the most profound advantages of tethering physical artworks to non-fungible tokens is the ability to unequivocally verify their authenticity. The immutable blockchain technology ensures that ownership records remain unaltered and indisputable.

Furthermore, many NFT marketplaces guarantee artists ongoing royalties with each sale, potentially setting up a perpetual income stream. This stands in stark contrast to the traditional art market, where artists often lose track of their creations once sold through intermediaries.

Certainly, challenges abound when linking physical art to NFTs. The issue of double-selling physical copies can muddle authenticity if not managed carefully. Instances of unauthorised sales have also surfaced, though marketplaces are working diligently to address these concerns.

Another challenge lies in the restrictions on public display that NFT ownership may entail due to copyright issues unless explicitly stated in the NFT’s terms.

Despite these challenges, the market is evolving, and as it matures, it will undoubtedly refine its processes.

A CONVERGENCE

Phygital NFTs mark the convergence of the physical and digital realms,

guided by the principles of Web3 design. These tokens offer more than just virtual experiences; they facilitate the connection of real-world products and experiences to the digital sphere, nurturing communities and enhancing customer retention.

Numerous brands have eagerly adopted phygital NFTs as a means to cultivate tight-knit communities

FOR COMMERCE

and offer innovative experiences to their customers. Examples span from Starbucks’ Odyssey to Timex’s collaboration with the Bored Ape Yacht Club. The outcomes have been promising, with heightened customer engagement and retention.

Beyond community experiences, phygital NFTs introduce traceability and trust to physical products. Buyers can trace the complete history and provenance of an item, bolstering authenticity and counteracting the counterfeit of products.

Numerous brands have eagerly adopted phygital NFTs as a means to cultivate tight-knit communities and offer innovative experiences to their customers. Examples span from Starbucks’ Odyssey to Timex’s collaboration with the Bored Ape Yacht Club. The outcomes have been promising, with heightened customer engagement and retention”

Phygital NFTs unlock doors to collaboration among creators, developers, brands, and consumers, guided by Web3 design principles. Artists can monetise their skills by partnering with brands to create branded content, gaining visibility and acknowledgment for their work. As the world hurtles toward tokenisation, NFTs could serve as the conduit for commerce. Phygital NFTs are positioned to play a pivotal role in community and marketing initiatives, attracting both Web2 stalwarts and digital native companies.

However, the widespread adoption of phygital NFTs hinges on the development of practical solutions for tracking physical items represented by NFTs, competition with traditional NFTs, and the establishment of clear legal and regulatory frameworks.

While the first wave of NFTs seized headlines, it’s the second wave, characterised by the fusion of the physical and digital, that promises true innovation. It’s a reminder that it was never just about NFTs themselves; it’s about the transformative technology they usher in – a technology that could reshape how we interact with the world.

AS THE WORLD HURTLES TOWARD TOKENISATION, NFTs COULD SERVE AS THE CONDUIT

In the world of investing, intuition and fortuitous timing might create the occasional overnight millionaire, but in the long run, there’s simply no replacement for rigorous due diligence. Traditional assets a ord investors access to swathes of market data to guide informed decision making. Such analysis is rarely spoken of when discussing crypto assets which unfortunately obscures an incredibly important fact – crypto not only o ers investors equivalents to the metrics they’re used to, it gives them an unrivalled secret weapon, on-chain data.

Virtually all cryptocurrencies operate on transparent blockchains that record every single transaction, as well as the exact balances and aggregated activity of all participants. Investors can use that on-chain data to get unique insights into crypto assets that simply aren’t feasible with traditional assets. Let’s look at three dimensions where crypto investors can gain insight, that their traditional counterparts could only hope for, and how these aspects can help guide their decisions.

within a small group? Answers to these questions are critical to knowing whether a token is popular among the masses. Decentralisation and widespread adoption across many market participants is, of course, what any token would want to see expressed in on-chain data.

A high level of supply concentration can create a greater risk of price volatility, liquidity crunch, and even market manipulation, as the token’s movements will be disproportionately impacted by the few large holders’ decisions of how much to buy or sell at a given time. It’s of course important to consider the classification, age, and purpose

Nicola Buonanno, VP South

of each token when considering the implications of its supply concentration.

LIQUIDITY

Liquidity is another important criterion for investors to study when evaluating a crypto asset. High liquidity means the asset will be easier to trade in large quantities without impacting its price or incurring high transaction costs. High liquidity also means the token may have better price discovery and be better equipped to withstand market turbulence, and depending on the unique value proposition of the token or any projects it’s associated with, liquidity could indicate users are getting utility from the token. Liquidity also tends to beget more liquidity, as a more actively traded token can attract

more investors, creating an even more vibrant market.

On-chain data e ectively arms investors with knowledge of the number of active wallets. This gives them an idea of how many people are actually using the asset and fostering an active market for it at any given time. Investors also need to pay attention to the share of token supply held by active wallets, as this will be one of the biggest determinants of market conditions for a given asset. For instance, we estimate that roughly 20 per cent of all mined Bitcoin is lost, estimated by the amount held in wallets that haven’t transacted in five or more years. That Bitcoin is e ectively o the market, and not contributing to Bitcoin’s liquidity.

MARKET COMPOSITION

Market composition refers to the entities and services holding and transacting with a given crypto asset. This is important for a few reasons. For one, crypto users turn to di erent types of services for di erent purposes, so a change in the breakdown of services controlling the supply of a token may provide clues on market outlook. For instance, crypto users generally move assets to exchanges – both centralised and decentralised – in order to swap them for other assets. So we o ten see large spikes in the share of supply held on these services during periods of market volatility.

INFORMED INVESTMENT

Similar to traditional markets, the blockchain ecosystem provides investors with myriad tools to evaluate opportunities and risks presented by any crypto asset –but with additional transparency due to on-chain data. By looking at distribution, liquidity, and market composition of tokens, investors are well-equipped to make informed decisions.

It’s important to note that raw on-chain data would simply show investors a list of transactions between di erent crypto addresses, with no indication of what organisations and entities those addresses represent. Institutions therefore need the right tools to draw actionable insights from on-chain data. For institutional investors, these investments would be well justified for the informed decision making they facilitate. And for crypto exchanges that are playing in an increasingly competitive field, leveraging such tools to provide retail investors with differentiated insight, could give them the edge they need to stand out from the crowd.

Ultimately, as investors learn more about the practical applications of on-chain data and adopt the tools they need to understand it better, we’ll see more and more institutions and retail investors adopt crypto assets successfully. W3

EMEA, Chainalysis

Virtually all cryptocurrencies operate on transparent blockchains that record every single transaction, as well as the exact balances and aggregated activity of all participants. Investors can use that on-chain data to get unique insights into crypto assets that simply aren’t feasible with traditional assets”

HOW YOUNG PEOPLE AND PARENTS SEE WEB3

WE LOOK AT A STUDY CONDUCTED ACROSS SEVEN COUNTRIES THAT HIGHLIGHTS THE GROWING USE OF WEB3, AND THE NEED FOR MORE EDUCATION RESOURCES

52% OF GEN Z (16-25-YEAR-OLDS) AROUND THE WORLD WISH THEIR SCHOOL TAUGHT THEM MORE ABOUT WEB3

53% OF PARENTS AGREE

POLICYMAKERS, EDUCATORS, AND WEB3 COMPANIES ALL NEED TO COME TOGETHER AND ENSURE THAT YOUNG PEOPLE AND THEIR PARENTS HAVE THE TOOLS AND KNOWLEDGE THEY NEED TO STAY SAFE AND MAKE INFORMED DECISIONS AS THEY NAVIGATE THIS FASTCHANGING DIGITAL SPACE”

Lisa Mayer, founder and CEO, Boss Beauties

“ALTHOUGH GEN Z ARE EMBRACING WEB3, MANY ARE STILL UNAWARE OF THE RISKS THAT IT ENTAILS – ESPECIALLY GIRLS. IT’S PARTICULARLY ALARMING THAT MORE THAN 40% HAVE COME ACROSS SOMEONE PRETENDING TO BE SOMEONE ELSE ONLINE”

Lila Thomas, vice president –Brand and Strategic Partnerships, Boss Beauties

WHERE YOUNG PEOPLE LEARN ABOUT WEB3?

GEN Z’S SHOPPING HABITS ON WEB3 (MOST

RECENT PURCHASE)

50% 20% 12% 10% 08%

GLOBALLY, 69% OF MEN ARE USING THE INTERNET, COMPARED TO 63% OF WOMEN

PARENTS

“I do not feel informed about the risks of Web3”

THIS MEANS THERE ARE 259 MILLION MORE MEN THAN WOMEN USING INTERNET IN 2022

58% CRYPTOCURRENCY NFTs ONLINE GAMING ACCESSORIES

DIGITAL REAL ESTATE VIRTUAL GOODS

OF YOUNG PEOPLE

ARE CONCERNED ABOUT THEIR PRIVACY AND SECURITY ONLINE

41% OF YOUNG WOMEN

HAVE ENCOUNTERED SOMEONE PRETENDING TO BE SOMEONE ELSE ONLINE

NEW YORK REMOVES RIPPLE, DOGECOIN FROM APPROVED GREEN LIST

The New York Department of Financial Services (NYDFS) updated its list of pre-approved cryptocurrencies that regulated entities can readily exchange, removing over a dozen well-known tokens such as Ripple’s XRP and meme coin Dogecoin.

The new guidance and processes from NYDFS detail how crypto firms are expected to evaluate coin listings before they are adopted, based on the agency’s previously provided framework.

The state regulator has granted numerous virtual currency licences and charters to ensure that New Yorkers have a well-regulated way to access the virtual currency marketplace.

Seedify raises $10m from LDA Capital

Seedify secured a $10m investment from LDA Capital as it looks to upscale its Web3 incubator and blockchain launchpad.

In March 2021, Seedify joined the blockchain space without raising external capital and launching through a pure token airdrop for its initial community.

The company’s journey has focused on helping teams who aim to create valuable Web3 products while sharing the outcomes of these success stories with its community via pre-launch token allocations.

Over 65 blockchain projects –mainly Web3 gaming – have entered the market through the Seedify launchpad.

Reverie launches $20m fund for crypto startups

Crypto advisory firm Reverie is set to launch a $20m flagship fund to invest in pre-seed and seed-stage crypto companies. The fund is led by two undisclosed US institutional investors.

Reverie’s investment projects include decentralised exchange Osmosis, blockchain scalingfocused Sovereign Labs and Solana-focused cryptocurrency market Orca. The firm has also advised projects like money market provider Compound, and trading platform dYdX.

The firm’s co-founders, Sukernik and Derek Hsue, were previously investors at Digital Money Group and Blockchain Capital, respectively, before founding Reverie.

THE LATEST WEB3 NEWS FROM ACROSS THE WORLD

Algorand bolsters Web3 ecosystem with Investment in Onramp.money

Algorand Ventures made a strategic investment in Onramp. money, a fiat-to-crypto onramp and offramp solution provider from India, as part of the Algorand Foundation’s strategy to accelerate the worldwide adoption of Web3 solutions. Onramp.money recently expanded its services into several jurisdictions across the globe, including Vietnam, the UAE, Turkey and Mexico. The platform has witnessed an average of 100-200 per cent recurring month-on-month growth in both transactions and user engagement.

Thailand’s Kasikornbank launches fund for Web3 projects

Thailand’s Kasikornbank launched a $100m fund focused on artificial intelligence, deep tech and Web3 fintech startups.

Known as KXVC, the fund will invest in technology firms seeking to expand their operations into the Asia Pacific (APAC) region.

The fund will invest in more than 30 startups and funds globally with a geographic focus in the US, Europe, Israel,and APAC, with the ability to lead and participate in a funding round.

For Web3, KXVC targets Web3 infrastructures, nodes validators, RPC providers, middlewares, modularity technologies, privacy, ZKP, wallets, alternative L1/L2s, shared securities, LsdFi and consumerisation of NFTs.

Nigeria cryptocurrency usage growing further

Cryptocurrency usage is growing in Nigeria, New York-based blockchain research firm Chainalysis said, as people are looking for opportunities to hedge against the weakening currency and an economic decline since the outbreak of Covid-19.

The country registered a 9 per cent yearover-year growth in crypto transaction volumes to $56.7bn between July 2022 and June 2023. The interest in bitcoin and stablecoins increased when the Naira’s value plunged, particularly during the most extreme drops in June and July of 2023.

Nigeria is one of only six countries in the top 50 by size globally whose crypto transaction volume grew year-over-year in the period under review, said Chainalysis. W3

The metaverse, a concept once confined to science fiction, is now becoming tangible. It represents a digital universe where people can immerse themselves, interact with digital elements, and connect with others through avatars or digital representations. Not just a technological advancement; the metaverse represents a burgeoning industry that has the potential to reshape the way we conduct business and engage with digital content.

In the first five months of 2022 alone, approximately $105bn was invested in developing the metaverse technology and infrastructure, surpassing the total investments made in 2021, according to global management consulting firm McKinsey. The financial sector has noted, with JP Morgan estimating the metaverse’s market value at an astounding $1tn.

An indicative measure of the metaverse’s growth can be seen in the increased sales of virtual reality (VR) headsets. In 2018, 4.4 million VR headsets were sold – a number that surged to 19.1 million in 2022. Forecasts indicate continued growth in headset sales over the next five years. These trends and data underscore the profound influence the metaverse is exerting on businesses and the broader digital landscape. It represents an emerging frontier with significant potential for innovation, connectivity and expansion in the coming years.

“One of the key drivers of the metaverse’s rapid growth is its ability to transform the user experience,” says Mehdi Cherif, co-founder and CEO of Pulse World, a metaverse-based social network that prioritises accessibility, innovation and user engagement.

“While current discovery methods o ten rely on static search with images, videos and descriptions, the metaverse takes this experience to an entirely new level. It introduces active and interactive environments where users

can explore and engage with digital content in previously unimaginable ways. This shi t enhances the richness of user interactions and opens up many opportunities for businesses and creators to cra t immersive and engaging virtual experiences,” he adds. Moreover, the metaverse o ers a sense of presence and connection that outperforms traditional digital communication. It enables users to inhabit virtual spaces, interact with others through avatars, and engage in real-time, shared experiences. This fosters deeper engagement and collaboration. In essence, the metaverse redefines how we connect, discover, and interact in virtual spaces, making it a driving force in the evolving landscape of digital applications.

STEPPING INTO A NEW WORLD

The adoption of the metaverse is a global phenomenon, with several countries taking bold strides in its development. Notable among these pioneers are the UAE, Barbados, South Korea, Canada, Japan, the US and China. Each nation has forged its unique path in the metaverse landscape, contributing to its multifaceted growth and impact.

The UAE has emerged as a beacon of metaverse innovation, and the government has proactively created a regulatory environment facilitating metaverse adoption, with Dubai leading the way. This year, the region witnessed unprecedented developments in the metaverse industry, with key players from around the world contributing to its growth. Among them is Pulse World, which redefines how users engage with the virtual world.

SHAPING THE METAVERSE

Pulse World prioritises accessibility, innovation and user engagement to create a dynamic digital ecosystem that o ers a plethora of opportunities for users.

“Pulse World is an immersive metaverse-based social network

While current discovery methods often rely on static search with images, videos and descriptions, the metaverse takes this experience to an entirely new level. It introduces active and interactive environments where users can explore and engage with digital content in previously unimaginable ways”

Pulse World is an immersive metaverse-based social network designed for accessibility and engagement. It allows users to fully immerse themselves in a virtual world, prioritising convenience, flexibility, creativity, freedom, safety, security and interoperability”

designed for accessibility and engagement. It allows users to fully immerse themselves in a virtual world, prioritising convenience, flexibility, creativity, freedom, safety, security and interoperability. Users can create a personalised profile to build their identity, form virtual communities, play games, listen to music, watch videos, explore new places, share experiences, transact and engage in social activities,” Cherif says.

He explains the key standout feature of the application – its adoption of direct carrier billing (DCB), a payment method that can potentially drive mass adoption in the metaverse. “DCB simplifies payments by allowing users to purchase through their mobile phone bills, eliminating the need for complex payment methods. It leverages familiarity, provides global reach through mobile network operators, ensures security, promotes financial inclusion, supports microtransactions, seamlessly integrates with metaverse platforms and encourages partnerships within the ecosystem,” he adds.

THE INSPIRATION BEHIND THE INNOVATION

Pulse World’s journey into the metaverse was inspired by a profound

WORLD’S JOURNEY INTO THE METAVERSE

PULSE

was inspired by a profound recognition of the metaverse’s potential as the

FUTURE OF SOCIAL INTERACTION AND ENGAGEMENT

recognition of the metaverse’s potential as the future of social interaction and engagement. What began as a foray into music streaming evolved into a comprehensive metaverse platform encompassing social networking, gaming, virtual events and more. “The unique concept of creating digital cloned environments and experiences laid the foundation for developing the Pulse World app,” observes Cherif.

Pulse World’s metaverse social media app is rooted in a do-it-yourself model, which strongly emphasises transparency and streamlined interaction. “Users can access a rich array of content and features

that cater to their diverse interests within our app. Our content library spans various genres, ensuring there’s something for everyone, while users can actively participate by creating and sharing their content, such as user-generated playlists, recommendations, and more. Our commitment to transparency extends beyond music to ensure that all creators and users within our metaverse receive fair recognition and compensation,” he adds.

Furthermore, the company recognises the importance of gaming in the metaverse landscape and plans to introduce 200 single-player and multiplayer games by the end of the

year. These games will cover a wide spectrum of gaming experiences, from strategy and action to puzzles and social gaming. “Our goal is to o er users diverse gaming options that cater to various preferences and interests. We believe in creating a metaverse that entertains and fosters connections among users who share a passion for gaming and o ering these games represent a significant step in that direction,” notes Cherif.

Meanwhile, at its core, Pulse World prioritises social interaction. It aims to recreate real-life connections in the virtual realm, transcending physical boundaries and enabling individuals from around the world to interact

Mehdi’s avatar within the metaverse

A new perspective of the real world

One of the games on o er on the Pulse World app

and collaborate effortlessly in virtual spaces. The platform offers robust social features, including avatars, virtual chat rooms, voice chat, messaging and various communication tools that bridge the gap between work and leisure. These tools serve diverse purposes, from gaming and education to socialising and collaboration, making it a versatile platform for various interactions.

THE ROAD AHEAD

As part of the growth strategy, in the next six months, Pulse World will focus on expanding its reach into new markets. The plan includes launching in multiple countries, emphasising emerging markets, thereby making the metaverse accessible to a diverse global audience.

“Interoperability with other metaverse platforms is a crucial facet of our strategy, ensuring seamless

interactions between users. Exciting additions like microgames are on the horizon, adding depth to the user experience while maintaining a robust mobile focus for accessibility across platforms,” remarks Cherif.

Pulse World has set ambitious yet achievable targets for the growth of its app in the coming year. The initial aim is to reach 300,000 active users within the first six months of launch. This milestone reflects the brand’s confidence in the app’s appeal and dedication to fostering a vibrant metaverse community.

Beyond this, Pulse World will closely monitor user engagement, feedback and market dynamics to adapt its strategy and continue expanding its user base organically. The long-term vision is to establish the app as the go-to destination for metaverse enthusiasts, ultimately connecting millions of users in the immersive world it has created.

ENDLESS POSSIBILITIES

In a world where the metaverse is rapidly emerging as a new frontier, Pulse World is redefining the rules of digital engagement. Its commitment to innovation sets it apart in the metaverse landscape. As the region witnesses the metaverse’s exponential growth and its impact on industries and society, the company stands at the forefront, fostering connections in this dynamic virtual realm.

The metaverse is not just a technology; it is a vision of a world where digital and physical boundaries blur, where human creativity knows no bounds, and where the possibilities are limited only by our imagination. Pulse World’s journey reflects this vision, and its continued efforts to make the metaverse accessible to a global audience are reshaping the digital landscape as we know it.

As we look to the future, the metaverse will continue to evolve, and Pulse World looks to grow with it. With innovation, collaboration and a commitment to user-centric design, the company is poised to play a pivotal role in shaping the metaverse of tomorrow, where connections are boundless, experiences are immersive, and the possibilities are limitless.

AS WE LOOK TO THE FUTURE, THE METAVERSE WILL CONTINUE TO EVOLVE, AND PULSE WORLD LOOKS TO GROW WITH IT

Interoperability with other metaverse platforms is a crucial facet of ourstrategy, ensuring seamless interactions between users. Exciting additions like microgames are on the horizon, adding depth to the user experience while maintaining a robust mobile focus for accessibility across platforms”

Pulse World has set ambitious targets for the app’s growth in the coming year

CHARTING ITS GROWTH

CRYPTO OASIS CONTINUES TO EVOLVE AS A PROMINENT HUB FOR BLOCKCHAIN AND CRYPTOCURRENCY INNOVATION IN THE UAE AND THE BROADER MIDDLE EAST

In recent years, the blockchain and cryptocurrency industries have undergone remarkable growth and evolution, with the UAE emerging as a leading destination for businesses in this sector. Witnessing this transformation firsthand, Crypto Oasis, a Dubai-based venture building company has established itself as a global hub for blockchain innovation.

The company earlier this year released the second edition of the Crypto Oasis Ecosystem Report for 2023, at Dubai

Fintech Summit where it stated that it has become the fastest-growing blockchain ecosystem worldwide, featuring over 1,800 organisations identified as of Q1 2023. In collaboration with the DLT Science Foundation, Roland Berger, Venom and Chainalysis, the report highlighted the surge in institutional and individual adoption within the crypto industry and its role in assisting blockchain and Web3 organisations.

THE UAE’S REGULATORY ENVIRONMENT

A pivotal factor contributing to the success of the Crypto Oasis is the UAE’s stable, predictable and favourable regulatory environment. This environment has enabled both local and international players to establish and operate within the region. The UAE’s focus on disruptive technologies has positioned it as a modern-day renaissance hub, with artificial intelligence, the metaverse and Web3 technologies at the forefront of innovation. According to Chainalysis, crypto transactions in the UAE are primarily driven by early adopters looking to make investments, in contrast to other regions where citizens often purchase cryptocurrencies out of necessity.

BUILDING ECOSYSTEMS

To further bolster the ecosystem, Crypto Oasis has initiated several ventures and intellectual properties targeting different aspects of the industry. “Our Web3 meta-community, known as “arte,” has organised over 60 meetups in the past year, featuring more than 120 projects,” says Saqr Ereiqat, co-founder, Crypto Oasis.

“Additionally, we have hosted thought leaders in the Web3 industry at over 13 “arte Talks,” held at the Theatre of Digital Art in Madinat Jumeirah every other week. Furthermore, we continuously host major players in the blockchain space, such as Ethereum, Casper Labs, DFINITY and Solana, for fireside chats at our meetups in Dubai International Financial Centre (DIFC), focusing on protocol founders and CEOs,” he adds.

Meanwhile, a recent initiative launched by the brand is the ‘Crypto Oasis Games Guild’ aimed to build an ecosystem for the gaming industry in Web3, with support from partners such as Epic, Unity, QORPO Gaming Studios and Polygon. The initiative currently has 18 founding members from around the world and is in its growth phase, focusing on promoting cross-collaboration and partnerships between industry players.

COMMITMENT TO SUSTAINABILITY

In alignment with the UAE’s COP28 initiative, Crypt Oasis Ventures has launched ‘The Green Block.’ This initiative aims to create an ecosystem for the ESG (environmental, social, governance) part of Web3, fostering a sustainable future by bringing together innovators and entrepreneurs to develop and implement solutions that promote environmental sustainability and social responsibility. The Green Block focuses on promoting and connecting this part of the industry to align with the UAE’s goals for sustainability.

Furthermore, Crypto Oasis has played a pivotal role as the ecosystem partner at various events in the region, including the Future Blockchain Summit,

The UAE’s focus on disruptive technologies has positioned it as a modern-day renaissance hub, with artificial intelligence, the metaverse and Web3 technologies at the forefront of innovation”

Superverse, Dubai Metaverse Assembly and Art Dubai, among others.

“The Crypto Oasis Ecosystem Report for 2023 underscores the incredible progress and achievements of the Crypto Oasis in establishing itself as a leading global blockchain ecosystem. It highlights the substantial growth and adoption of blockchain and Web3 technologies, as well as our commitment to supporting the development and success of blockchain and Web3 entrepreneurs and organisations.

“With its vibrant community, favourable regulatory environment, and thriving startup ecosystem, the UAE is poised to become a global hub for the crypto industry. We are proud to be at the forefront of this transformation, contributing to the region’s reputation in the blockchain and cryptocurrency space,” adds Ereiqat.

KEY HIGHLIGHTS FROM THE REPORT

Dedicated zones: The rise of the blockchain startups has garnered significant attention worldwide. Governments and private organisations have recognised the potential of these and have established dedicated economic zones to attract and foster innovation in blockchain and crypto-related startups. In the UAE, these economic zones come in three forms: mainland, free zones and special economic zones.

Mainland and free zones: The mainland economic zones in the UAE, including the Department of Economic Development and the Abu Dhabi Department of Economic Development o er a variety of incentives to businesses. On the other hand, free zones like the Dubai Multi Commodities Centre (Crypto Centre), International Free Zone Authority, RAK Digital Asset Oasis and twofour54 o er unique advantages such as tax breaks, streamlined regulations and access to funding. These zones create a supportive environment for companies, fostering research and development.

Special economic zones: Abu Dhabi Global Market (ADGM) has been pivotal in promoting blockchain and crypto activity. DIFC, home to over 22,000 companies, recently established the Dubai AI and Web3 campus.

SINCE THE INCEPTION OF BITCOIN IN 2009, THE CRYPTOCURRENCY market has grown exponentially, boasting a total market capitalsation of over

$2TN AND THOUSANDS OF CRYPTOCURRENCIES IN CIRCULATION

trade cryptocurrencies using fiat currencies or other forms of digital assets. Since the inception of Bitcoin in 2009, the cryptocurrency market has grown exponentially, boasting a total market capitalsation of over $2tn and thousands of cryptocurrencies in circulation.

Crypto exchanges play a critical role in the crypto ecosystem by streamlining the growth and adoption of cryptocurrencies, facilitating price discovery and enabling the flow of capital into the market. Moreover, they promote the wider implementation of blockchain technology by providing a gateway for individuals to access and use cryptocurrencies.

One of the advantages is its potential to provide greater financial inclusion and access to financial services, especially in regions with limited access to traditional banking services.

In the Middle East, where there is a substantial unbanked population, crypto exchanges can play a transformative role in reshaping the financial landscape.

Meanwhile, in recent times, decentralised exchanges (DEXs) have emerged as a notable trend within the cryptocurrency exchange landscape. DEXs do not rely on centralised intermediaries and operate on blockchain networks.

PROJECTS

contract frameworks, digital identity systems, and regulatory compliance tools.

37X

37X

Morningstar Ventures, an investment firm specialising in digital assets and Blockchain technology, will soon hold the world’s first interactive digital art exhibition in the heart of Dubai. The headquarters of “37xDubai” is located in the Burj Daman Tower in the DIFC area, at the heart of Dubai’s commercial and social life.

This development has the potential to enhance transparency and security in cryptocurrency trading while reducing the risks associated with hacking and fraud.

ART IN SPACE

ART IN SPACE

PROJECTS

Morningstar Ventures, an investment firm specialising in digital assets and Blockchain technology, will soon hold the world’s first interactive digital art exhibition in the heart of Dubai. The headquarters of “37xDubai” is located in the Burj Daman Tower in the DIFC area, at the heart of Dubai’s commercial and social life.

THE NEXT STEPS

Crypto Oasis continues to evolve as a prominent hub for blockchain and cryptocurrency innovation in the UAE and the broader Middle East.

FOUNDRY

that enable individuals to buy, sell, and

FOUNDRY

The Foundry provides an inspiring environment for multidisciplinary activities, lifestyle and entertainment which will help to uplift the lifestyle of the surrounding communities. It includes a co-working environment, a creative library, podcast

Art in Space is a new paradigm on Art and expressions with a unique value proposal combining technology, galleries framework, marketplace & digital tools. With a 360 multisensory room, Art in Space aims at pioneering the art of senses allowing artists and audiences to enter new world of sensations. Art in Space is located on Sheikh Mohammed Bin Rashid Boulevard in Dubai.

Art in Space is a new paradigm on expressions with a unique value proposal technology, galleries framework, marketplace With a 360 multisensory room, Art in Space aims the art of senses allowing artists and audiences new world of sensations. Art in Space is located Mohammed Bin Rashid Boulevard in Dubai.

ment, strategic economic zones, and a growing interest in digital asset infrastructure, the region is poised to play an increasingly significant role in the global blockchain technology.

As these technologies continue to mature, Crypto Oasis remains committed to fostering innovation, supporting entrepreneurs and contributing to the region’s reputation as a global leader in the crypto space.

FT NFT

The Foundry provides an inspiring environment for multidisciplinary activities, lifestyle and entertainment which will help to uplift the lifestyle of the surrounding communities. It includes a co-working environment, a creative library, podcast

FT NFT

ftNFT is bringing a unique blend of physical and digital galleries to Dubai Mall. Their phygital space offers a new to experience NFTs. Here you can use their NFT terminals purchase NFTs easily with your credit card, explore the world

ftNFT is bringing a unique blend of physical galleries to Dubai Mall. Their phygital space to experience NFTs. Here you can use their purchase NFTs easily with your credit card, explore

TRANSFORMING BUSINESSES

How the UAE and Switzerland complement each other’s strengths and expertise in the Web3 space

Q:WHAT ROLE DOES SWITZERLAND PLAY IN PROMOTING SUSTAINABLE TECHNOLOGY INNOVATION ON A GLOBAL SCALE? WHAT SPECIFIC PROJECTS HIGHLIGHT THIS COMMITMENT TO SUSTAINABILITY?

Switzerland is one of the most innovative countries in the world. With universities like ETH and EPFL and organisations such as the World Economic Forum and United Nations headquartered in Switzerland, the country is adding a tremendous value to the global sustainability agenda.

WHAT ARE SOME OF THE KEY INITIATIVES SWITZERLAND HAS IMPLEMENTED TO PROMOTE ENVIRONMENTAL CONSERVATION? HOW DOES ITS GEOGRAPHICAL AND CULTURAL CONTEXT INFLUENCE ITS APPROACH?

To be honest, Switzerland alone is too small on the landscape to make a big di erence on the global environmental conservation – if we are only looking inside the country to change things. So Switzerland with the central and neutral position is one of the best partners to negotiate global policies.

TELL US ABOUT YOUR RECENTLY LAUNCHED INITIATIVE – THE GREEN BLOCK AND YOUR PARTNERSHIP WITH UAE’S BEEAH. HOW WILL THE INITIATIVE FACILITATE THE DEVELOPMENT OF SUSTAINABLE WEB3 SOLUTION ON A GLOBAL SCALE? The Green Block is a think tank and launch pad to support startups and initiatives in the Web3 and artificial intelligence space. An important step is to connect those initiatives with big and responsible corporates, like Beeah.

HOW DO THE UAE AND SWITZERLAND COMPLEMENT EACH OTHER’S STRENGTHS AND EXPERTISE IN THE WEB3 SPACE? WHAT POTENTIAL BENEFITS CAN ARISE FROM THIS COOPERATION? Switzerland has democracy, innovation, trust and decentralisation in its genes. With that Switzerland is the stable backbone for many blockchain protocols. On the other side is the UAE – the perfect place to scale and export ideas in the Middle East and North Africa region and in the wider Asian and African target markets.

RALF GLABISCHNIG, FOUNDER, CRYPTO OASIS

WEB3: THE UAE’S DIGITAL RISE

We explore some of the driving forces behind the UAE’s progress in the fields of AI, blockchain and sustainability

Q:HOW IS THE UAE POSITIONING ITSELF AS A GLOBAL HUB FOR WEB3 AND AI COMPANIES?

The UAE’s strategic focus on becoming a global hub for Web3 and AI fourth industrial revolution technologies is bolstered by its appeal to talent from around the world. With billions of skilled individuals within a short flight radius, the UAE’s open policies make it easy to obtain work permits and visas. This accessibility has led to a diverse and dynamic workforce, enhancing the ecosystem.

Capital investment is also a focus, with the establishment of venture capital funds and investment incentives for tech startups. The country’s robust infrastructure, including advanced data centres and regulatory support, further bolsters this ecosystem. Favourable regulations promote innovation, protect intellectual property and ensure data security. Global partnerships and hosting tech events in Dubai amplify the UAE’s commitment to these sectors.

ELABORATE ON THE DRIVING FORCES BEHIND THE UAE’S PROGRESS IN THE FIELDS OF AI, BLOCKCHAIN AND SUSTAINABILITY.

The UAE’s progress in AI, blockchain and sustainability is driven by visionary leadership, strategic investments,

global collaborations, talent attraction, regulatory clarity, sustainability initiatives, and a focus on economic diversification – away from oil. These driving forces collectively contribute to the nation’s growth by fostering innovation, creating jobs and enhancing its global competitiveness.

VISIONARY LEADERSHIP: The UAE benefits from visionary leadership that recognises the importance of these technologies in shaping the future. Forwardthinking policies and strategic investments have been driven by leaders who understand the long-term benefits of AI, blockchain and sustainability for the nation.

STRATEGIC INVESTMENTS: The UAE has made substantial investments in research, development and infrastructure for AI and blockchain technologies. These investments include the Dubai AI and Web3 Campus, The World Economic Forum’s Centre for the Fourth Industrial Revolution, data centres and hosting international events such as COP28.

TALENT ATTRACTION AND DEVELOPMENT: The UAE’s open policies and ease of obtaining work permits attract top talent from around the world. Moreover, the emphasis on education and skill development ensures a skilled workforce capable of driving advancements in these fields.

REGULATORY FRAMEWORK: The UAE has established clear regulatory frameworks for AI, blockchain and sustainability. These regulations provide stability and confidence to businesses and investors.

SUSTAINABILITY AGENDA: The UAE has announced 2023 as the year of sustainability. Sustainability is a key driver of growth, with the UAE prioritising renewable energy, water conservation, and sustainable urban planning. These e orts not only benefit the environment but also create opportunities for innovation.

DIVERSIFICATION OF ECONOMY: The development of these sectors contributes to economic diversification, reducing dependence on traditional industries like oil and gas. This diversification promotes resilience and long-term economic stability.

WHAT IS THE ENVIRONMENTAL IMPACT OF WEB3? HOW CAN WEB3 HELP ACHIEVE THE SUSTAINABLE DEVELOPMENT GOALS?

Web3, comprising blockchain and AI, can help by enabling trust, traceability and transparency in the entire ecosystem. It supports decentralised energy markets, enhances supply chain transparency, and enables carbon o setting. These aspects align with sustainable development goals such as a ordable and clean energy, industry innovation, responsible consumption and climate action.

SAQR EREIQAT, CO-FOUNDER, CRYPTO OASIS

UAE: PIONEERING INNOVATION

HERE’S WHAT MAKES THE COUNTRY A BUSINESS HUB FOR GLOBAL COMPANIES AND INVESTORS

Dubai has everything it needs to become the next Silicon Valley, as rightly said by Omar Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy and Remote Work Applications. New incentives such as Golden Visas and remote working visas have increased the emirate’s value preposition for companies operating digitally and regulations which have been put in place for virtual assets (VA) have helped to ensure legitimacy.

UAE LEADS THE WAY

The UAE has always been at the forefront of the latest technologies, with a government committed to enhancing competitiveness, whether by smart cites, widespread digital adoption or encouraging new technological advancements into the region. Its strategic location makes it the perfect business hub for markets around the world and has facilitated in welcoming businesses and nationalities from all over.

Henzie Heally, managing partner, The Counsel Services (TCS)

The chairman of Dubai’s Virtual Asset Regulatory Authority’s (VARA) executive board said as part of their economic plan, they want to establish Dubai as the capital, of the future economy, for metaverse, artificial intelligence, Web3 and blockchain. We all know that where Dubai has a will, it will find a way and we see this happening – with not only large and established VA clients moving into the region but also Web3 and blockchain startups setting up and starting themselves from the UAE in general.

THE REGULATORY AUTHORITY

The VARA was established in 2023. The significance of this is that the move legitimises the landscape of Dubai for VA businesses, adds credibility to them and thereby attracts more to the city. VARA’s authority extends to all VA businesses in Dubai excluding the Dubai International Financial Centre (DIFC).

VARA has several licence activities which need its approval: advisory services; broker-dealer services; custody services; exchange services; lending and borrowing services; payments and remittance services and VA management and investment services. All other businesses having a VA licence in Dubai require an NOC from this authority.

But people looking to setup in Dubai, now have another option – the DIFC AI and Web 3.0 Campus. At this point, it would be prudent to explain what a free zone is. The UAE sports over 50 economic free trade zones which have their own authority under which entities are registered but are still ultimately subject to the laws of the emirate in which they exist. Out of these free zones, only two are financially regulated which have their own laws and their own court system, applying English Law and operating under common law principals. They are the DIFC and Abu Dhabi Global Markets (ADGM), operating independently from the rules and

regulations which apply outside them, except for federal laws, which apply across the UAE, and are applicable to everyone. Setting up in DIFC would mean no VARA approval but the VA company would instead be subject to the DFSA (the DIFC’s regulatory body).

The ADGM exists in Abu Dhabi and brought out regulations around VA activities back in 2016. They have created a special department for VA activities within ADGM but seem to have become the free zone in which you incorporate if you are setting up an OTC or exchange. ADGM has a Reg-Lab (a sandbox for regulated activities) which may be able to accommodate other VA startups, but these are accepted on a case-bycase basis.

Whether DIFC or ADGM, holding companies are commonly used for structuring, holding the intellectual property and shares in underlying operating companies but makes the corporate structure more attractive to investors because the stakeholders will be subject to common law, providing structuring flexibility, and risks are ringfenced from liabilities.

But with so many free zones to choose from, which does one choose? Good question. This is exactly why people should seek expert advice. A mess only results in more time and money to fix this later. Free zones have different licence activities under their authority and not all of them offer licence activities for VA, Web3, metaverse projects or AI. An expert will know which free zone is most beneficial to your business/project or whether you should incorporate outside of a free zone. There are strict compliance and legal elements once the company has been incorporated for the entity’s ongoing operations, investment transactions, internal and external corporate structuring and so on.

The UAE sports over 50 economic free trade zones which have their own authority under which entities are registered but are still ultimately subject to the laws of the emirate in which they exist. Out of these free zones, only two are financially regulated which have their own laws and their own court system, applying English Law and operating under common law principals”

FREE ZONES HAVE DIFFERENT LICENCE ACTIVITIES UNDER THEIR AUTHORITY AND NOT ALL OF THEM OFFER LICENCE ACTIVITIES FOR VA, WEB3, METAVERSE PROJECTS OR AI

A NEW DAWN FOR BUSINESS EFFICIENCY

HOW BLOCKCHAIN-BASED PLATFORMS ENABLE PEER-TO-PEER INTERACTIONS, EMPOWERING CUSTOMERS TO DIRECTLY ENGAGE WITH COMPANIES

In an age dominated by digital transitions, the emerging Web3 framework promises unparalleled transformation for businesses. Characterised by its decentralised architecture, Web3 heralds the next generation of the internet, deeply rooted in blockchain technology and decentralised finance. For enterprises, Web3’s decentralised applications (DApps) promise to reinvent key business areas, including operational e ciency, consumer engagement and sustainable production.

PRODUCT DIGITISATION: THE DIGITAL PRODUCT PASSPORT

Imagine a world where every product, from a simple toy to a high-end gadget, comes with a unique, immutable digital identity. This is precisely what product digitisation – one of the foundational elements of Web3, o ers. Each product is endowed with a digital passport that encapsulates its entire lifecycle and relevant attributes. Stored on a decentralised and tamper-proof ledger,

Wassim Merhey, CEO and co-founder, Verofax

this passport furnishes details ranging from its origin and manufacturing details to its current status in the supply chain.

Anchored by the interactive outline markup language guidelines, these digital passports can encapsulate everything from raw material sourcing and quality claims to inventory traceability and promotional data. Users can access this plethora of information through diverse interfaces such as QR codes, NFC tags, or computer vision WebApps. This not only ensures transparency but also establishes an unbreakable bond of trust between brands and consumers.

IMMERSIVE AND CUSTOMISED USER EXPERIENCES: CATERING TO DIVERSE STAKEHOLDERS

Web3 does not offer a one-size-fits-all solution. Instead, it moulds the user experience based on the stakeholder’s unique role in a product’s lifecycle. For instance:

Manufacturers/brand owners: They are equipped with tools that offer a 360-degree view of the product, from creating digital passports on platforms such as Verofax to real-time inventory tracking.

Logistics partners: They can seamlessly oversee details such as inventory counts, shipping documents, and even conditions under which products are transported.

Customs authorities: Their role in ensuring that imported/exported goods comply with regulations is augmented through Web3. They can quickly validate product authenticity, compliance and more.

In-country distribution and logistics partners: With enriched data access, they can guarantee adherence to product quality and sustainability standards.

Retailers: Empowered with authentication tools, they can uphold the highest quality benchmarks while accessing brand promotions, ensuring

consumers receive genuine products. Customers in-store: Augmented reality interfaces grant them immediate insights into product information, warranties, and promotional deals, fostering an enriched shopping experience.

Service agents: With productspecific details at their fingertips, they can ensure impeccable service delivery. Recycling facilities: Enhanced insights about products’ materials and construction guide these facilities in refining recycling processes, aligning with global sustainability aspirations.

TOKENISED REWARDS: THE FUTURE OF LOYALTY PROGRAMMES

The digital transformation of loyalty programs is on the horizon with

Web3’s tokenised rewards. Unlike traditional loyalty points, which might degrade in value, these tokens have the potential to be traded on crypto exchanges.

Over time, they might appreciate in value, redefining the very concept of consumer rewards. It’s a revolutionary approach to ensure consumers are not merely retained but are also invested in a brand’s future.

The resounding impact and multifaceted benefits of Web3 services:

For consumers: Web3 translates to empowerment. With extensive product knowledge at their disposal, consumers can validate product claims independently. The prospects of personalised rewards, which might be appreciated over time, only make the deal sweeter.

For brands: Web3 demystifies the brand-consumer relationship. Products evolve into direct advertising conduits, enabling real-time feedback and data-driven strategies. The traditional barriers faced by offline brands crumble, allowing for a more direct and impactful connection with consumers.

For regulators: Counterfeit products and non-compliance are perennial challenges. With Web3, regulators are armed with tools to audit, verify, and ensure that products not only meet the expected quality standards but are also genuine. This is a significant stride towards consumer safety and adherence to sustainability and quality norms.

In conclusion, Web3’s decentralised solutions are not just another technological advancement; they’re a paradigm shift, primed to reshape business operations, consumer interactions, and the global market’s very fabric. As businesses progressively adapt to these solutions, we stand on the cusp of a more transparent, efficient, and sustainable future.

WITH PRODUCT-SPECIFIC DETAILS AT THEIR FINGERTIPS, THEY CAN

ENSURE IMPECCABLE SERVICE DELIVERY

Web3 translates to empowerment. With extensive product knowledge at their disposal, consumers can validate product claims independently. The prospects of personalised rewards, which might be appreciated over time, only make the deal sweeter”

THE FUTURE OF

LOYALTY

PROGRAMMES

Technology is constantly reshaping industries, and the retail, hospitality and entertainment sectors are no exception. With technologies such as blockchain, artificial intelligence and the metaverse available to brands in these sectors, loyalty programmes need to be reimagined as to how they provide value and rewards to their customers/and or users.

The intersection of new-age technology and customer rewards programmes can be a game-changer for businesses aiming to elevate customer experiences, satisfaction and loyalty.

Here are some key insights to develop a loyalty programme that is powered by technology along with a customer-centric mindset:

A CONSUMER EMPOWERING MINDSET

Customers should be at the heart of any business strategy. They are not just passive participants but active partners in the brand-consumer relationship.

Traditional loyalty programmes o ten fall short of recognising this fact, o ering limited value and uninspiring rewards. It’s time to shi t that paradigm by empowering consumers through technology.

Brands need to understand that today’s consumers are well-informed and value their time and attention. Hence, they need to o er loyalty initiatives that truly resonates with their preferences and lifestyles.

Additionally, customers want more flexibility and diversity in the ways rewards can be earned and redeemed. Customer loyalty initiatives should be rooted in the conviction that consumers deserve more from their engagement with brands.

LEVERAGE TECHNOLOGY INTELLIGENTLY

In the era of information overload, capturing and retaining consumers’ attention is a significant challenge for brands. This is an opportunity for brands to step up their game and reward consumers not only for their purchases but also for their valuable attention and engagement.

Use technology to facilitate a customer journey where they enjoy their interaction with the brand while earning rewards. These can range from discounts and exclusive access to one-of-a-kind experiences, which enhances the value of their engagement.

Jordan Archimbaud, founder, TILTT

REWARDS PROGRAMMES NEED TO BE REIMAGINED TO SECURE HIGHER LEVELS OF CONSUMER ENGAGEMENT, AND TO LIFT AND SHIFT SPEND

One example that comes to mind is Marriott International which is leveraging blockchain for secure guest identity verification and contactless check-ins. Similarly, MGM Resorts has deployed IoT to personalise guest experiences. Additionally, digital payment solutions like Apple Pay and Google Wallet are now ubiquitous for seamless transactions.

Platforms such as RedFox Labs are at the forefront of the tokenisation of real estate and entertainment assets. These innovations not only enhance convenience but also offer customers new opportunities to earn and redeem digital rewards.

DISTRIBUTED LEDGER TECHNOLOGY

It is vital that brands leverage innovations such as blockchain, asset tokenisation, and digital payments to create a seamless and rewarding ecosystem for both consumers and brands.

Blockchain: This technology can help make loyalty programmes stand out.

THE FUTURE OF LOYALTY LIES IN PUTTING CONSUMERS FIRST, valuing their attention, and enriching their lives with meaningful rewards and experiences.

Asset tokenisation: Loyalty rewards should extend beyond discounts and coupons. With asset tokenisation, loyalty rewards can be transformed into tangible, tradeable assets. Hence, consumers can not only use their rewards within a brand’s ecosystem but also trade them with others or even cash out.

Imagine a loyal customer being able to exchange their accumulated tokens for a VIP backstage pass at their favorite music festival, an exclusive cooking class with a renowned chef, a limitededition collectible from a beloved brand, or even becoming an investor of the latter. These are just a few possible avenues that loyalty programmes can help create, ensuring that loyalty isn’t a one-way street but a mutually beneficial relationship. Digital payments: Integrating a seamless digital payment processing system into loyalty programmes can enhance overall consumer experience. The payment gateway should be designed to be secure and user-friendly, ensuring that consumers can trust the process and enjoy a hassle-free transaction experience. This convenience further reinforces the idea that consumers are valued and respected in their interactions with brands.

VALUE LOYALTY

The future of loyalty lies in putting consumers first, valuing their attention, and enriching their lives with meaningful rewards and experiences. With empowered customers will come strengthened loyalty.

With blockchain, consumers can have complete confidence that their loyalty rewards are being accurately tracked and securely stored. This not only reduces friction but also fosters trust between consumers and brands.

Additionally, blockchain allows the setup of a decentralised and immutable ledger of consumer interactions. This data can be invaluable for brands, enabling them to gain deep insights into consumer behaviour and preferences, which in turn can be used to tailor offerings and experiences.

The loyalty landscape has always been dynamic, but merging it with fintech and blockchain has unleashed a new wave of innovation. At its core, this disruption will change loyalty programmes and also reshape the way brands and consumers interact.

By utilising the potential of blockchain technology and asset tokenisation, consumers will be empowered to make the most of their engagement with brands, while brands will be equipped to exceed customer expectations and build lasting loyalty.

Imagine a loyal customer being able to exchange their accumulated tokens for a VIP backstage pass at their favorite music festival, an exclusive cooking class with a renowned chef, a limited-edition collectible from a beloved brand, or even becoming an investor of the latter. These are just a few possible avenues that loyalty programmes can help create, ensuring that loyalty isn’t a oneway street but a mutually beneficial relationship”

WITH EMPOWERED CUSTOMERS WILL COME STRENGTHENED LOYALTY

EXCLUSIVE PAINTINGS, SCULPTURES, PHOTOGRAPHY AND TIMEPIECES FROM AWARD-WINNING INTERNATIONAL ARTISTS

Painting by Ihab Ahmad

Photograph by Greg Newington

GOVERNING THE METAVERSE: WHY SHOULD YOU CARE?

THE SCALE ON WHICH THE CONCEPT WILL IMPACT DIFFERENT INDUSTRIES AND THE NUMBER OF USERS EXPOSING THEIR IDENTITIES STRESSES THE NEED FOR GOVERNANCE

WORDS: FAIZAN AMIN KAPADIA

The metaverse is still not a reality, yet it is among the most widely discussed subjects. Although very attractive, the idea of a virtual world with near-real-life experiences doesn’t come without complexities and polarising opinions. A significant debate is about the metaverse governance.

The term’ metaverse’ was first used by Neal Stephenson in his fiction novel Snow Crash in 1992. Then, he envisioned a digital, virtual world where people could exist and interact just like the real world. The modern metaverse concept is quite similar, as it proposes a virtual space where one can keep an identity, own assets, shop and play games.

This technology is set to be the next big thing capable of revolutionising the online world.

Mark Zuckerberg’s statement, “Metaverse isn’t a thing a company builds. It’s the next chapter of the internet overall,” helps us understand what the future has in store. The metaverse will rely on virtual reality, augmented reality, artificial intelligence and blockchain technologies.

Leading names such as Google, Microso t, Meta, Shopify and Unity Technologies have invested in the metaverse, which is projected to have a market size of $490.4bn by 2030.

WHY IS METAVERSE GOVERNANCE NEEDED?

With so much investment and major players involved, it is evident that there is a need for some regulation and governance to move forward. Apart from investments, the massive scale on which the concept will impact di erent industries and the number of users exposing their identities and assets further stresses the need for governance.

Metaverse is expected to impact the following:

Information technology: Undoubtedly, the metaverse will significantly impact the IT sector. E-commerce websites will be able to provide 3D visualisation, whereas customer service will be improved using AR applications.

Healthcare: In the healthcare sector, we can expect the creation of virtual hospitals or spaces where doctors can examine their patients in a three-dimensional setting, reducing hassles like commuting and accommodation. Data sharing will also be secure and convenient with blockchain technology.

Banking and finance: With blockchain and cryptocurrencies already o ering applications for secure, quick and convenient transactions, we can expect more with metaverse, reducing the need

THE TERM’ METAVERSE’ WAS FIRST USED BY NEAL STEPHENSON IN HIS FICTION NOVEL SNOW CRASH IN 1992

for physical visits to banks and financial companies.

Real estate: An industry that has almost always been on the rise globally, the real estate sector will function more seamlessly with the metaverse. The sellers and agents will be able to create AR-based models of the properties, whereas the buyers will be able to browse through without leaving the comfort of their homes.

Automotive: BMW and Hyundai Motor Company have already put 3D modelling and VR to use. We can expect more companies to enter the fold, with even greater applications to enhance the process of designing, testing and manufacturing automobiles.

Education: We have already witnessed the ease online lectures bring for the teachers, students and institutions. With the metaverse, there will be even less need for physical interaction as virtual environments can be created for all kinds of learning and examination purposes.

These are just some of the industries that are expected to be revamped with the advent of the metaverse. The world is set to witness an immense transformation, with enhanced ease and cost-e ectiveness for companies and users. But we can miss out on its advantages without ensuring careful governance that secures the assets and information of the individuals involved.

CHALLENGES IN METAVERSE GOVERNANCE

Whatever governance model is implemented for the metaverse, its purpose

Metaverse isn’t a thing a company builds. It’s the next chapter of the internet overall.” Themetaverse will relyon virtual reality, augmented reality, artificial intelligence and blockchain technologies”

will be to ensure a secure user environment and provide a legal framework to be followed by all stakeholders. The evolving nature of the metaverse and its applications is a challenge, as the methods of misuse cannot be predicted accurately.

Presently, we can expect the following challenges:

Regulating value and preventing fraud: There will be virtual currencies and assets in the metaverse, which will hold tangible value and can attract activities such as financial fraud and money laundering. A major challenge will be to prevent such actions and ensure that the financial interests of users are protected.

Balancing freedom and protection: The governing authorities will have to develop legal frameworks that not only provide financial security but do so without hindering users’ freedom. Among the attractions of the metaverse is the freedom to access the virtual world with minimal constraints. If users have to go through complex processes

Governments worldwide set their laws according to the acceptance in their region/culture, but this luxury might be absent with metaverse.

SO, THE CHALLENGE IS TO DEVELOP REGULATIONS ACCEPTED WORLDWIDE TO ENSURE THAT THE VIRTUAL REALMS CAN OPERATE FLAWLESSLY

due to protection, it will go against the core purpose of the concept.

Presenting a globally accepted framework: The world operates in a decentralised manner, with varying regulations, norms and cultures. Governments worldwide set their laws according to the acceptance in their region/culture, but this luxury might be absent with metaverse. So, the challenge is to develop regulations accepted worldwide to ensure that the virtual realms can operate flawlessly.

Protecting data and privacy: Just as in the online world today, there will be issues like privacy, data and identity protection in the metaverse. The governance framework will have to ensure that users can be free from these risks so that all the perceived advantages of the concept can be realised.

Metaverse governance possibilities: Considering the magnitude and impact of the metaverse, it is quite clear that a regulatory framework is needed. But there is a lot of

discussion among experts about the possible ways.

Possible options include:

DECENTRALISED CONTROL

Like the current Web3 based on blockchain technology, decentralised control will ensure security and transparency in data transfer and financial transactions. But as seen with cryptocurrencies, this model brings a lot of impunity to users but also covers unethical financial practices due to lack of government intervention. If the organisations involved can create a framework that monitors this aspect, there is a possibility of creating a decentralised framework that ensures a safe, ethical and helpful digital realm.

THE INTERNETGOVERNANCE MODEL

The second model, which can be considered, is also a tried and tested one, the very same which is followed to regulate the internet. A group of stakeholders comprising governments, tech companies and international bodies ensure compliance with agreed-upon principles while adhering to their own set of laws within their areas of influence. This will allow, just like now, to prevent common issues related to data and financial security while accounting for specific requirements related to a particular country, region or industry.

CONCLUSION

Going forward, the stakeholders can opt for any of the above two frameworks, their combination or a completely new framework to cater to the unique challenges of governing the metaverse. Considering the pace of advancements, we can be sure that the model has to be decided soon. Moreover, it must have the support of all the participants, including companies, governments and users, for the metaverse to fulfil its promises.

There will be virtual currencies and assets in the metaverse, which will hold tangible value and can attract activities like financial fraud and money laundering. A major challenge will be to prevent such actions and ensure that the financial interests of users are protected”

THE INDUSTRIAL METAVERSE

EVERYTHING YOU NEED TO KNOW

AVEVA’S

Paradigm shi ts in the way we use technology are coming thick and fast, as recent developments around artificial intelligence (AI), augmented reality and cloud computing show. We’re adopting and adapting to these advances almost equally quickly – if the way we use video conferences in our nowhybrid workplaces is any indication.

Already on the horizon – and in development – is the industrial metaverse. It’s the logical next step as our physical and virtual worlds blend in new ways. As more applications are built around Web3 and the metaverse, businesses will come closer than ever to a truly hybrid reality environment.

WHAT IS THE INDUSTRIAL METAVERSE?

As we see it, the industrial metaverse is a persistent virtual environment enabling multiple teams to collaborate in real time across any device. Moreover, everyone within the industrial metaverse will have access to the full gamut of up-to-date operations and engineering data streams.

Plug in the power of AI, and this information can be presented in context, in the form of a common digital thread that brings together historical data, the potential for new concepts and business forecasts.

In simpler language, think of the industrial metaverse as an always-on world, connecting real factories,

GLOBAL HEAD OF RESEARCH, SIMON BENNETT, OFFERS A PRIMER ON THIS NEW TECHNOLOGY

machines, data and people in virtual ways. Over time, we will see the industrial metaverse as a sub-set of a larger metaverse, much like shared cloud data platforms run o the internet today.

INVESTMENTS

The industrial metaverse builds on technology already in use today. It takes the form of a natural layer that organisations can deploy on top of their existing digital infrastructure to futureproof their businesses.

The industrial metaverse is made up of three essential elements:

The digital twin

Operations and enterprise data

People working together

Any organisation will be able to create its own industrial metaverse. The investment required will be an incremental addition to existing digital transformation programs. Many companies will therefore be able to launch pilot trials for a very low risk.

HOW WILL WE ENTER THE METAVERSE?

Enterprise users won’t need headsets to enter the industrial metaverse. Rather, you’ll be able to log on to this virtual representation of the real world from any edge device, such as your smartphone or laptop. Much like the internet, you’ll be able to access it from anywhere at any time, to check in on business data and automated systems and interact with colleagues on the other side of the world. The technology to support industrial metaverse applications already exists but is siloed for one reason or another.

CHALLENGES

The potential of the industrial metaverse means its arrival is a matter of ‘when’, not ‘if’. The world’s largest hyperscalers are already working on programs to identify its true potential. Unlike other, previously over-hyped technologies, the appeal of the metaverse is about how we can improve working together. That basic proposition will have plenty of takers.

That said, there could be concerns around data privacy, intellectual property, cybersecurity and compliance. Obviously, consumer metaverse vendors will face greater ramifications, based on what we see on social media platforms today but industrial metaverse applications will need to adhere to the security requirements as with any enterpriselevel application.

For businesses that have already implemented a digital twin, much of the identity, security and privacy governance requirements will have been already discovered and met.

EARLY USE CASES THAT ARE LIKELY TO EMERGE

There is a wealth of opportunities in industry but we see the greatest

opportunities for organisations that work in data-rich business environments that depend on sensor data and up-to-date information. We also see opportunities arising when deep and specific expertise is required in short notice to resolve issues. Such opportunities include:

Factory operations

Supply chain management

Construction simulations during design

Safety assessments

Operations optimisation, and any time when people meet to solve design, construction or operations issues together.

Expect to see the first major applications being rolled out before the end of the year with potential initial mainstream business applications featuring threedimensional extensions of virtual conference so tware. At the same time, expect further refinements of existing technology such as unified, single-window views into business operations. Smart city applications, for instance, already enable urban o cials to view, manage and correlate specific functions such as power, building management, water and sewer, tra c and the environment. They can view all these in one place, on a single screen, and see how changes in one area a ect another. The next step is to share that view with remote colleagues.

INDUSTRIAL METAVERSE

Simon Bennett, global head of Research, Aveva

As we see it, the industrial metaverse is a persistent virtual environment enabling multiple teams to collaborate in real time across any device. Moreover, everyone within the industrial metaverse will have access to the full gamut of up-to-date operations and engineering data streams”

MEETING SUSTAINABILITY TARGETS

THE INDUSTRIAL METAVERSE OFFERS ENTERPRISES A MEDIUM-TERM SOLUTION ON HOW TO MEET SUSTAINABLE TARGETS

The adoption curve of the industrial metaverse is delinked from the adoption curve of the consumer metaverse. The reason for this is its ability to simulate complex industrial enterprises has a higher value for decision makers than the quality of immersivity and humanmachine interface platforms

Industrial organisations face two significant challenges. The first is to meet sustainability targets while achieving growth targets. And most developed countries have set goals to become net zero between 2040–2060, including the UAE. The other challenge is how to manage the growing complexity of end-to-end industrial systems while managing Scope 1,2,3 emissions levels.

To move forward, industrial enterprises must be able to share data across the entire enterprise, supply chain and third parties. They must also be able to predict the impact of any changes made to any part of the enterprise including manufacturing, distribution, sales, recycling on its sustainability profile.

Technology platforms that can integrate large amounts of end-to-end data, monitor, analyse, and simulate the impact of changes on the sustainability profile of an industrial enterprise do not exist today and are still under development. There are also institutional, organisational, and cultural barriers to achieving the necessary levels of data sharing and collaboration.

While the latest tools and platforms of industry 4.0 technologies, including digital twins are providing benefits, without further evolution they cannot meet tomorrow’s

Simran Bagga, vice president, Omnix Engineering and Foundation Technologies, Omnix International

needs. Fundamentally industry 4.0 and digital twin solutions help to describe physical systems and not the whole system. Any C-level decision making using these tools is static and siloed.

ARRIVAL

The industrial metaverse is an evolution of the discrete digital twin technologies that are the foundation of industry 4.0. It represents an endto-end, real-world industrial system, including external elements outside the company and the environment within which it operates.

It is a connected whole-system digital twin with functionalities to interact with the industrial enterprise, in the environment in which it exists, allowing decision makers to understand the past and forecast the future.

The industrial metaverse moves beyond digital simulation of physical assets, typically captured by industry 4.0, into groups of connected assets, processes and functions, upstream and downstream activities, and involves the entire industrial enterprise. It thus provides a transformative tool to elevate the use of digital simulation technology to the level of strategic decisionmaking. This is especially valuable for developing effective sustainable growth strategies.

The adoption curve of the industrial metaverse is delinked from the adoption curve of the consumer metaverse. The reason for this is its ability to simulate complex industrial enterprises has a higher value for decision makers than the quality of immersivity and human-machine interface platforms.

IMPLEMENTATION AND BENEFITS

While implementing, enterprises should make the most of these steps, namely: Develop a clear digitalisation strategy, with a definite current and final position.

Identify the opportunities offered after implementation and use a road map to generate returns and cost savings.

Plan to implement pilot projects thereby building up the learning and change management process.

Build and align the external ecosystem of suppliers and partners.

Industrial metaverse offers multiple advantages over industry 4.0 solutions. These are:

Simulation of industrial complex systems is possible and various what-if virtual scenarios can be presented. This is especially useful for sustainability targets.

The data inside the industrial metaverse is longer from the past or present but can also generate

the future. This can represent how sustainable will the industrial enterprise be in the future.

Visualisation of industrial complex systems is possible using artificial intelligence (AI) and virtual reality and limitation of the human mind can be overcome.

Using visualisation and what-if scenarios, interconnection between various stakeholders of the industrial enterprise becomes more visible and can be managed optimally. This interdependence can help assess how sustainability targets can be met.

CHALLENGES

If industry 4.0 transitions to become industrial metaverse, then the on-going challenges around implementation of industry 4.0 will also need to be overcome before industrial metaverse become mainstream.

According to Arther D Little’s recent research report, titled The Industrial Metaverse, the following challenges are being experienced in implementation of industry 4.0 solutions:

High investments required for data integration and management.

Limitations from existing legacy IT systems.

Reluctance to embrace business transformation.

Difficulties in generating returns in short timescales.

Lack of common standards.

Weak systems integration.

Lack of interdepartmental cooperation.

Weak change management and employee involvement.

While achieving a large scale, endto-end, industrial digital twin may be a few years away, due to development gaps in computing and scale-up AI, early steps are possible in the short term and industrial metaverse use cases have already been developed.

Notwithstanding these innovations required, the industrial metaverse offers enterprises a medium-term solution on how to meet sustainable targets.

The industrial metaverse is an evolution of the discrete digital twin technologies that are the foundation of industry 4.0. It represents an end-to- end, realworld industrial system, including external elements outside the company and the environment within which it operates”

ENDLESS POSSIBILITIES

INTERCONNECTED DIGITAL ECOSYSTEMS ARE RESHAPING BUSINESSES, ENABLING COLLABORATION AND END-TO-END SOLUTIONS

The way we work is changing significantly. Digital ecosystems are now shaping the future of business, replacing traditional models. With the help of decentralisation, digital ecosystems lay the foundation for a future where collaboration, innovation and growth are seamlessly interwoven.

At its core, a digital ecosystem is a platform that connects businesses and individuals with systems and technologies seamlessly. This interconnectedness allows businesses of any size to integrate their products and services, leveraging the strengths of multiple stakeholders.

Consider the transformation from traditional supply chains to value chains. Businesses had rigid structures and operated linearly, with each entity contributing

a specific component. However, digital ecosystems enable a more holistic approach, where businesses interact at various stages of the value-creation process. This shi t radically alters business models, allowing companies to provide end-to-end solutions rather than isolated products.

One key advantage of digital ecosystems is their ability to help exchange information and resources. In a data-driven world, this capability enhances decision-making and problem-solving. Collaborative platforms enable businesses to collectively analyse market trends, customer preferences, and emerging technologies, letting them adapt swi tly to changing demands.

In this rapidly evolving landscape, the UAE serves as a vibrant hub for innovation. As of mid-2022, the number of small and medium enterprises in the UAE had already reached an impressive 557,000, contributing as much as 63.5 per cent to the non- oil GDP”

A CATALYST FOR A TRANSFORMING LANDSCAPE

As the global economy rapidly digitises, Web3, the decentralised web, o ers transformative potential. It o ers a new way to interact with the digital world. Using blockchain principles, it creates a peer-to-peer network for distributed data ownership and control.

In this rapidly evolving landscape, the UAE serves as a vibrant hub for innovation. As of mid-2022, the number of small and medium enterprises (SMEs) in the UAE had already reached an impressive 557,000, contributing as much as 63.5 per cent to the nonoil GDP. Projections indicate that by the year 2030, the UAE will be home to a staggering one million SMEs. These figures underscore the region’s entrepreneurial spirit and its commitment to fostering a dynamic business ecosystem.

Web3 enhances global business reach by amplifying organisational output and breaking geographic boundaries through blockchain platforms, reaching new audiences. This connectivity fosters innovation and e cient value creation through seamless collaboration. Web3’s impact on business includes

improved data privacy, ownership, and trust, empowering individuals. It also introduces smart contracts automating processes, boosting e ciency, and reducing costs.

POWER OF COLLABORATION AND WEB3 FOR DISTRIBUTED TEAMS

In today’s workforce, distributed teams and remote work go hand in hand. Thanks to advances in communication technology, teams can collaborate e ectively, no matter where they’re located. Decentralised platforms allow for real-time interaction and smooth information sharing, eliminating the obstacles that have traditionally impeded teamwork.

For a nation with a diverse workforce such as the UAE, Web3’s potential to facilitate remote work is significant. Collaboration tools powered by Web3 ensure data integrity and enhance accountability, creating a secure environment for sharing ideas and working together towards common goals.

TRUST AND WEB3: FACILITATING THE FUTURE OF WORK AND BUSINESS

For a landscape that increasingly relies on digital interactions to drive business growth and international partnerships, trust is essential for maintaining successful relationships. Web3 introduces a new way to establish and maintain trust. Combining decentralised architecture and cryptographic

security enables agreements to be executed without intermediaries, resulting in fewer disputes.

In conventional business models, intermediaries usually serve as guardians of trust, introducing intricacy and expenses to procedures, especially for remote third parties where limited oversight leads to reliance on intermediaries. Web3 eradicates this dependence through its inherent design. Implementing security measures in Web3 is crucial in fostering trust among users and ensuring data integrity.

NAVIGATING THE FUTURE: PROSPECTS AND OPPORTUNITIES

As global economies continue to embrace digital Web3 ecosystems, the future of work and business takes on a new dimension. Collaborative spaces will be characterised by seamless connectivity, where professionals from diverse backgrounds come together e ortlessly to innovate and create. The geographic boundaries that once constrained teamwork will blur, replaced by a global network of talent working in harmony.

In this future vision, sustainability and ethics will not be mere aspirations but intrinsic values. Blockchain-based supply chains will give consumers unprecedented transparency, letting them make informed choices aligned with their values. Automation through smart contracts will expedite processes, freeing up resources for strategic thinking and human-centric tasks.

In closing, the UAE’s dedication to adopting these innovations, particularly within its dynamic free zones and the burgeoning blockchain and Web3 industry, highlights its standing as a visionary player in the global economy, steering the course toward a future where the boundaries of possibility continue to expand. The path ahead holds untold potential, and as the world observes the UAE’s trajectory, the digital future is already upon us, forging new paths for generations to come.

Dr Sameer Al Ansari, CEO, Ras Al Khaimah Digital Assets Oasis

GAMING INTELLIGENCE

systems can also create unique content on the fly for players so the experience always feels engaging and fresh.

On the other hand, implementing simulations and VR technologies, mainly when driven by AI, presents several key challenges. First and foremost is the computational demand – creating realistic AI-driven environments requires substantial computing power, which can be expensive and resource-intensive. Ensuring seamless and responsive interactions in VR environments is another challenge, as any latency or lag can break the immersion.

Q:HOW CAN AI BE INTEGRATED INTO GAME DEVELOPMENT PROCESSES TO ENHANCE GAMEPLAY EXPERIENCES AND STREAMLINE CONTENT CREATION?

The use of artificial intelligence (AI) in the gaming industry extends beyond merely cra ting more challenging and intelligent adversaries. AI now can construct entire virtual worlds, bring non-playable characters with realism to life and shape the evolution of storytelling.

Through the analysis of extensive player data and feedback, AI algorithms can detect recurring patterns and fine-tune game mechanics. This can lead to a greater equilibrium in gameplay, enhanced rhythm and heightened player contentment.

WHAT ROLE DOES BLOCKCHAIN PLAY IN GAMEFI AND NFTS, AND HOW CAN AI ASSIST IN MANAGING THESE DIGITAL ASSETS WITHIN VIRTUAL GAMING ECONOMIES?

Blockchain o ers a secure and transparent environment for players to possess and exchange in-game assets, while AI can fuel innovation and tailor gameplay. When united, these two elements form a winning partnership capable of delivering advanced gaming encounters that are more immersive, captivating and equitable for players.

IN VR, HOW CAN AN AI-DRIVEN ENVIRONMENT BE USED TO CREATE A MORE IMMERSIVE USER EXPERIENCE, AND WHAT ARE THE KEY CHALLENGES IN IMPLEMENTING SUCH TECHNOLOGIES?

In the field of simulations and virtual reality (VR), AI-driven environments have the potential to elevate immersion to unprecedented levels. AI can replicate real-world physics and dynamics with astounding accuracy, ensuring that every interaction within the virtual space feels genuine.

Artificial intelligence systems can analyse user actions and intentions, responding dynamically to create realistic, tailored scenarios. For instance, AI can adapt to challenges based on a user’s skill level in training simulations, providing an optimal balance between learning and engagement. Additionally, generative AI

HOW CAN AI-POWERED SOLUTIONS HELP GAME DEVELOPERS ADAPT TO A DECENTRALISED COMMUNITY-DRIVEN ECOSYSTEM?

WHAT ARE THE POTENTIAL BENEFITS AND DRAWBACKS?

Artificial intelligence-powered solutions offer game developers a transformative toolkit to thrive in decentralised, community-driven ecosystems.These technologies empower them to create dynamic, personalised gaming experiences through content generation and player behaviour analysis. AI-driven insights enhance decision-making, aiding in community management, marketplace optimisation, and resource allocation.

These technologies can enhance e ciency and productivity by automating repetitive tasks, enabling data-driven decision-making through advanced analytics, and providing personalised experiences to users.

However, there are also important drawbacks to consider.

Privacy concerns arise as AI systems collect and process vast amounts of personal data. Ethical dilemmas surround issues like bias in AI algorithms and the potential for job displacement due to automation.

Moreover, there’s the risk of over reliance on AI, which can lead to a lack of human expertise and understanding in critical domains.

To harness the benefits of AI while mitigating these drawbacks, it’s crucial to implement responsible AI practices, ensure transparency, and prioritise ethical considerations in AI development and deployment.

How artificial intelligence in the gaming industry has made substantial strides over the years

MARC SEAL, CO-FOUNDER AND CEO,

SORTIUM

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THE NEXT DIGITAL REVOLUTION

We explore why the UAE has become the epicentre for Web3 startups and entrepreneurs

Q:HOW DO YOU SEE THE UAE’S PROGRESS IN FOSTERING THE WEB3 ECOSYSTEM, AND WHAT ARE THE KEY INITIATIVES DRIVING THIS TRANSFORMATION?

The UAE, with its strategic vision to be a global innovation hub, has taken proactive steps towards embracing the Web3 ecosystem. Starting with initiatives like the Blockchain Strategy 2021 that aimed to integrate blockchain into 50 per cent of government transactions, while bodies such as the Dubai Future Foundation and the Global Blockchain Council work towards exploring and promoting Web3 applications.

Regulatory bodies in the UAE are working on cryptofriendly frameworks to encourage legitimate business growth. Investment in blockchain startups, educational initiatives on Web3 technologies and international collaborations further underscore the UAE’s commitment to the decentralised tech landscape.

SHARE INSIGHTS INTO HOW THE COUNTRY IS BECOMING A MAGNET FOR WEB3 STARTUPS, AND WHAT ADVANTAGE DOES IT OFFER OVER OTHER GLOBAL TECH HUBS?

The UAE’s allure for Web3 startups can be attributed to a myriad of factors, but I’d like to spotlight three pivotal reasons:

Holistic infrastructure development: Beyond its advanced tech facilities, the UAE has strategically cultivated an environment conducive for talent

acquisition, development and retention. It o ers a blend of safety, luxury and social amenities, further amplified by state-of-theart tech parks, innovation hubs and collaborative workspaces.

Progressive regulatory environment: The Virtual Assets Regulatory Authority’s (VARA) evolution reflects the UAE’s commitment to the Web3 sector. By framing unambiguous regulations around digital assets and blockchain, they’ve eliminated the uncertainty for startups, enabling them to operate without apprehension of abrupt policy shi ts.

Geostrategic significance: Nestled between East and West, the UAE is a pivotal gateway for global business and trade. This unique position lets startups tap into various markets seamlessly. Furthermore, its time zone advantage facilitates uninterrupted global connectivity and eases community building.

YOU RECENTLY ANNOUNCED YOUR PRE-SEED ROUND. PLEASE PROVIDE INSIGHTS INTO HOW THIS FUNDING WILL EMPOWER BEDU TO DRIVE TECHNOLOGICAL ADVANCEMENTS.

In early 2021, we recognised the transformative potential of artificial intelligence (AI) and blockchain for future consumer and citizen services. Over the past two years, we’ve delved deep into blockchain and Web3, identifying valuable tools

AMIN AL ZAROUNI, CEO, BEDU

BY FRAMING UNAMBIGUOUS REGULATIONS AROUND DIGITAL ASSETS AND BLOCKCHAIN, VARA HAS ELIMINATED THE UNCERTAINTY FOR STARTUPS, ENABLING THEM TO OPERATE WITHOUT APPREHENSION OF ABRUPT POLICY SHIFTS”

and use cases for both businesses and end-users. We envision these technologies as pivotal in crafting the next generation of government and enterprise services. This pre-seed funding round aims to expedite our ambition of developing an AI platform that can autonomously craft digital experiences for our clients, harnessing the capabilities of generative AI and blockchain. We’re aiming for rapid advancement in designing products that, though not yet widely recognised as essential, we believe will witness an exponential adoption rate once introduced.

HOW DO YOUR ADVANCEMENTS AND INVESTMENTS CONTRIBUTE TO THE BROADER TECH AMBITIONS OF THE UAE?

We’ve always set our sights high, with a clear ambition to ascend as a unicorn in this domain. As the market dynamics tilt towards the east, we are poised to tap into its vast potential. With AI anticipated to influence a market of over 16 trillion by 2030, our goal is to establish a formidable platform that amplifies this impact.

As an Emirati enterprise steered by UAE Nationals, our vision extends beyond the present, setting our sights on a future where AI and Web3 technologies are ubiquitously adopted. Our past endeavours in Web3 projects bear testament to our capabilities and our adeptness

at community-building. By integrating communities into the foundational stages of product development – from ideation and design to execution – we aim to revolutionise the product lifecycle. Our track record showcases our successes, and we’re committed to replicating and magnifying those achievements on an even grander scale.

PROVIDE A DEEP DIVE INTO HOW YOUR SOLUTIONS ARE POISED TO RESHAPE THE FUTURE OF THE INTERNET. Let’s address this, spanning from design to end-use. Previously, we emphasised our intent to weave the community more intimately into the product lifecycle. With the advent of Web3, we’re championing a design approach that collaborates closely with potential end-users. This not only carves out a unique product niche but also assures optimal market acceptance, given its co-creation alongside the community. Such a methodology stands distinct, with Web3 amplifying its feasibility.

Our end goal is not just an AI platform but one supercharged by generative design AI, transforming user visions into tangible products. This goes beyond the conventional scope of generative AI, which might simply code or sketch a website layout.

Instead, we’re sculpting a platform poised to birth an allencompassing, operational product for users, encompassing every technological stratum – from infrastructure and data to services and user experience. Picture businesses leveraging generative AI to create products, sidestepping the lengthy process of seeking partners, hefty contracting costs, and extensive development times. We aim to recalibrate this entire framework, offering the market transformative tools.

AS AN EMIRATI ENTERPRISE STEERED BY UAE NATIONALS, OUR VISION EXTENDS BEYOND THE PRESENT, SETTING OUR SIGHTS ON A FUTURE WHERE AI AND WEB3 TECHNOLOGIES ARE UBIQUITOUSLY ADOPTED”

Pic: Getty Images

NAVIGATING AHEAD

choose to share their imagery with the platform and are rewarded with NVG8 tokens for their contributions. This contrasts with Web2, where people’s data is used by large tech platforms and sold to third parties without benefitting the user.

SHARE

EXAMPLES OF HOW

THE PASSIVE USER-GENERATED DATA CAN BE HARNESSED TO CREATE REAL-WORLD USE CASES FOR WEB3.

Q:IN LIGHT OF THE RECENT ANNOUNCEMENT ABOUT THE OPEN-SOURCE ARABIC LANGUAGE AI MODEL IN ABU DHABI, HOW DO YOU VIEW THE IMPACT OF THIS DEVELOPMENT ON THE GROWING TECH ECOSYSTEM IN THE UAE?

The UAE, particularly Abu Dhabi, has shown a strong commitment to innovation through initiatives like the UAE National AI Strategy and its engagement with technologies such as artificial intelligence (AI) and blockchain. The development of an open-source Arabic language AI model is just one example of what can be achieved when government bodies create an environment that helps tech companies flourish. I am excited to see what other AI and blockchain innovations come out of the region as more companies consider it a base for their operations.

HOW IS ABU DHABI NURTURING AND SUPPORTING THE EMERGING WEB3 PROJECTS?

Abu Dhabi is home to incubators and accelerators like Hub71 and the Abu Dhabi Catalyst programme, which provide resources, mentorship and funding opportunities to startups working on Web3 and blockchain projects. The emirate is also home to various venture capital firms and investment funds that fund startups and emerging projects, including those in the Web3 space.

EXPLAIN HOW YOU LEVERAGE AI TO STREAMLINE USER DATA PROTECTION.

Systems are designed to minimise the collection of unnecessary data and to protect sensitive information through various privacy-enhancing technologies. We employ an automated AI-powered pipeline for all image uploads that actively blurs such sensitive data as faces and licence plates while also detecting duplicate imagery and ensuring image quality is of a high enough standard to enable updates. The goal is to give users a say in how their data is collected and shared. Our users can

In our case, users can share image data captured by their dashcams and drones, allowing them to earn rewards for data they are already generating. This imagery is fed through our AI-powered pipeline, which protects user privacy and ensures image quality to enable near-real-time updates of Navigate Maps. This solution allows users to benefit in two ways: through rewards for contribution and through the use of the resulting solution – a decentralised mapping platform that is one of the first real-world use cases for Web3.

LOOKING AHEAD, WHAT DO YOU SEE AS THE KEY MILESTONES ON THE HORIZON FOR NAVIGATE?

We recently launched the Navigate Marketplace, a digital storefront where users can use the tokens they earn to redeem gi t cards from brands such as Airbnb, EA, Under Armour and UberEats. With the launch of our mobile app for iOS and Android coming soon, we are excited for more and more users to be able to contribute to the platform and earn rewards for their data while also contributing to a robust decentralised mapping solution.

We look at how the public and private sectors in Abu Dhabi are embracing blockchain and Web3

ALI HUSAIN, ADVISOR, NAVIGATE

IN OUR CASE, USERS CAN SHARE IMAGE DATA CAPTURED BY THEIR DASHCAMS AND DRONES, ALLOWING THEM TO EARN REWARDS FOR DATA THEY ARE ALREADY GENERATING”