The adoption of Non-Fungible Tokens (NFTs) in Dubai has been snowballing. The real estate sector is considered one of the primary beneficiaries, standing first in line to benefit from Web3 applications, which run on the blockchain technology using decentralized, peer-to-peer networks.
According to recent market data, real estate sales in the Metaverse reached UAD500 million in 2021, and the sales volume is expected to double in this year. The metaverse real estate market is projected to grow at a CAGR of 31 percent from 2022 to 2028.
Leveraging Dubai’s astute investor community and a relatively young population, which is characterised by high levels of familiarity and comfort with the concept of virtual worlds and its prospects, USH plans to develop and sell ultra-luxury digital properties as NFTs, with or without their physical twins.
Most recently, Dubai World Trade Centre has launched MetaIncubator, the first Metaverse incubator in the Middle East. The Ministry of Economy has hosted the world’s first ever economic summit, Investopia Investment Summit, in the Metaverse. The Ministry of Health and Prevention (MOHAP) has also developed a new Metaverse platform, allowing people to access medical care and receive health-related support virtually. Within the private sector, Dubai-based metaverse startup Eikonikos has recently raised USD2 million in pre-seed funding.
In addition to ownership, investing in digital mansions allows buyers to view their properties in Augmented Reality form, and interact with other users and digital neighbours.