The non-fungible token (NFT) industry in United Arab Emirates is expected to increase from $982.1 million in 2022 to reach $4.7 billion by 2028, according to a recent industry report.
The study by ResearchAndMarkets, revealed that the growth of the UAE NFT scene is driven by the growing number of entrepreneurs, businesses, and celebrities entering the industry.
In addition, the report highlighted that with the country being long considered a desirable destination for doing business, the UAE appears to become a global hub in the flourishing field of NFTs.
While more and more countries are seeking to impose strict regulatory measures on NFTs, there has been a notable surge in the buying, selling, and creation of the NFTs in the UAE.
In the Middle East and Africa region, particularly in the UAE, there has been an uptake in NFT-related activities. In 2022, Art Dubai – the largest contemporary art fair in the MENA region – welcomed nearly 100 international and local art dealers and a digital collection of 17 platforms and galleries dedicated to showcasing and selling NFTs.
Over the last 12 months, several innovative NFT marketplaces have also emerged in the country, which has made it relatively simpler for the general public to buy, sell, and trade in NFTs.
The rise of blockchain-based gaming
With blockchain-based gaming, people are frequently awarded cryptocurrencies or NFTs for participating in gaming tournaments. In line with this, the Abu Dhabi government-backed AD Gaming program has entered into a strategic collaboration with local crypto platforms such as Attarius Network, which attempts to increase the chances of blockchain-based gaming. The collaboration aims to create a participatory and collaborative NFT ecosystem for gamers.
New tech drives NFT market in UAE
UAE entities have always welcomed new and emerging technology including NFTs.
For the UAE’s 50th birthday celebration, the postal operator in the country issued NFT stamps to celebrate the federation’s National Day.
Dubai Culture also ventured into the NFT space with the NFT curatorial platform MORROW. Titled 50/50 to mark the 50th anniversary, the Dubai Culture exhibition included works by Khalid Al Banna, Gigi Gorlova, Alia Al Gaoud, Marwan Shakarchi, and Dalal Ahmed.
Also jumping on the growing NFT bandwagon, Art Dubai launched a digital art section – for the art fair’s 15th edition in March 2022 – examining the context from which NFTs, crypto, virtual reality, and video art developed since the beginnings of digital art in the 1980s.
Big firms capitalising on NFT opportunities
With Dubai and Abu Dhabi announcing that crypto-related activities and businesses are legal in the UAE, big firms are entering the NFT sector to capitalise on the growing global market and boost their growth.
In April 2022, Emirates Airlines announced its entry into the metaverse and NFT sectors. The firm is expected to bring out services and a series of digital collectibles that will enhance the flyers’ metaverse experiences. The firm also announced that the NFT and the metaverse projects are already underway and expected to launch in the coming months.
The firm has also repurposed its Emirates Pavilion at the Expo 2020 site as a contact point for people who can contribute to the firm’s future-focused projects, including those related to NFTs and metaverse.
In December 2021, Falcon Society also announced the launch of the UAE-based NFT line. The Falcon Society is a collection of 4,000 unique Falcon Humanoid NFTs living on the Ethereum blockchain. Each NFT serves as the users’ Society membership card and provides access to members-only benefits.
