DMCC’s FUTURE OF TRADE REPORT ON WEB3 PROJECTS HUGE GROWTH FOR CRIPTO, DEFI AND THE METAVERSE – WITH KEY ROLE FOR UAE AND MENA

DMCC – the world’s flagship free zone and the Government of Dubai Commodity Trade and Enterprise Authority – today released a special edition of its Future of Trade thought leadership report focused on Web3, which identifies the key drivers of growth, innovation and digital decentralization in a number of technological trends.

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

The market size for the metaverse will rise to USD 3.4 trillion by 2027, supported by road-tested use cases and the rapid advancement of Artificial Intelligence. The global DeFi market is expected to grow from USD 13.6 billion in 2022 to USD 600 billion by 2032, driven by the demand for fast and seamless financial services. Meanwhile, the crypto market looks set to stabilize after a period of turbulence, with 2023’s Bitcoin revival highlighting renewed appetite among industries and institutions for durable and value-added services.

However, much depends on the path taken by regulators and their ability to balance innovation, consumer protection and fraud risk. The report reviews government approaches across key regions, namely MENA, Asia, Europe and the United States. It finds innovation hubs emerging in countries such as the UAE, which has secured USD 25 billion in crypto transactions by 2022, and is pushing to attract further investment through accommodative regulatory stances.

Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC said: “Our latest Future of Trade report shows the exceptional growth on the charts across Web3, from crypto and DeFi, to AI and the metaverse. The global metaverse market will expected to rise to more than USD 3.4 trillion by 2027, with advances in AR/VR technology opening up a vast realm of opportunities beyond gaming and e-commerce for real estate, retail, education and healthcare Digital decentralization is perhaps the most seismic industry trend in the technology era and the insights in our Future of Trade report reinforce how Dubai and the UAE are supporting its growth trajectory with an investor-friendly approach that balances innovation with the need for consumer protection.I believe that DMCC is perfectly positioned to next wave to help global Web3 companies fully seize and capitalize on the rich opportunities in this fast-moving landscape.”

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

The Future of Trade report outlined several key industry and regulatory recommendations to help drive the evolution of Web3 and shape the next phase of its growth:

 Use principles-based regulation: By recognizing the inherent potential of crypto and metaverse technologies, and prioritizing consultative regulation, governments can create a principles-based regulatory framework that protects consumers and supports innovation. Increase public and private engagement: All stakeholders need to get involved. regularly and in a meaningful way to ensure that market developments and issues are dealt with quickly and efficiently, and to improve public awareness and education about risks. Promote Web3 innovation through industrial clustering: Companies and start-ups in the Web3 space can foster innovation through dedicated sector ecosystems such as the DMCC Crypto Centre, which enable knowledge exchange, education, access to capital and talent, and opportunities to tap into global business networks. Prioritize education and recruitment as key to Web3 growth: In order to utilize Web3. technologies and maximize their benefit, industries should prioritize education, nurturing new technology talent, provision of in-house training and financial resources.  Provide sustained long-term investment: Companies that invest and understand how markets function will be best placed to reap the financial rewards of these technologies in the future.  Develop Web3 adoption and scalability plans now: Companies should begin immediate preparations for Web3 adoption through investment, training, and board-level strategies. Any delay puts a business at significant risk of competitive disadvantage.

The DMCC Crypto Center is a comprehensive ecosystem for companies developing Web3 and blockchain technologies, and associated value-added services, providing everything crypto businesses and entrepreneurs need to set up and scale their operations. Having grown to over 600 members, and counting a number of industry leaders as ecosystem partners, including Bybit, Solana and TDeFi, the DMCC Crypto Center today plays a major role in supporting the growth of start-ups and strengthening of Dubai’s status as one of the most important global hubs for Web3 innovation.

To download and read the full report, please visit: www.futureoftrade.com